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Why franchise your business?


Franchising is a popular business model and the number of people in the sector has risen over the past few years. Expanding through franchising presents many benefits for your business. Franchisees invest capital and take on the day-to-day running of franchise units, while you enforce brand consistency across the network and gain a share of the profits. Let’s now take a more in-depth look at why you should consider franchising your business.


  1. Recession-proof:

It’s impossible for any industry to be completely recession-proof, but businesses that have adopted the franchise model have been found to survive a recession better than those that haven’t. This could be because franchisors aren’t usually subject to as high levels of overheads and debts as non-franchised business owners.


  1. Rapid expansion:

Franchising is a quick way of growing your network to numerous locations. The franchisee will provide the financial backing and motivation to drive your business concept in a particular area.


  1. Cost-effective:

Franchisees make an initial payment and then pay you a percentage of their revenue to be able to operate under your brand. Therefore, the costs of setting up the business are covered by the franchisee. This makes the franchise system an incredibly cost-effective route to develop your business into new territories.


  1. Increased purchasing power:

Central to franchising is franchisees being able to replicate a clear business concept successfully. As long as you put a sufficient amount of cash into marketing at a national level, the brand should be able to expand quickly nationwide. This will stimulate an increase in the volume of sales and, as a result, purchasing power.


  1. Easier market penetration:

Franchisees will often be known in the community, either on a personal level or due to previous business ventures. This means that they should be able to entice new customers to visit more easily. Being established in the community, living in the franchise territory and proving to citizens that they have made a commitment to the success of the franchise should all encourage better market penetration.


  1. Reduced day-to-day tasks:

The daily running of the franchise is the responsibility of the franchisee, which provides you with more time to focus on the development and growth of your business. Of course, a good franchisor will provide its franchisees with the necessary training and ongoing support, and be on hand if they have any questions. But not having to run everything by yourself takes away much of the stress and hassle.


  1. Reduced recruitment meetings:

When entrepreneurs make the decision to join your franchise, they will generally be choosing to stick with your brand for the long term. If they change their mind and decide to leave the business prematurely, they might not have received an adequate return on their investment and could even lose everything. This generally means that they won’t choose to become franchisees until they are 100 percent sure that they’re ready and dedicated to making it a success.

If franchisees have realised the full potential of their franchise investment and it is the right time to sell, it’s usually their responsibility to find a suitable buyer. So, you won’t have to commit to the often-time-consuming task of re-recruiting owners for your franchise units.

Franchisees are also responsible for recruiting their own staff, so you don’t have to spend your own time or resources on this.


  1. Overseas expansion possibility:

If you expand your business through the franchise model successfully, you could decide to use the master franchising system internationally. This is a relatively straightforward and quick way to expand into other countries, as the master franchisee can adapt your franchise model to suit the local market. The three main areas that might differ are the language, legal requirements and business customs.



By now, you should have a clearer idea of why you should franchise your business. But this doesn’t mean that franchising is the right decision for everyone. Before rushing into things and having regrets further down the line, it’s important to make sure you’re ready.

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