Question

Elaborate the advantages of a franchise form of business to a franchisee.

Answer 1

Advantages of franchising to franchisees:

• Franchisors share market knowledge and conduct market surveys.
• The start-ups can grow fast without having to increase labor, operating costs and blocking running expenses because, normally, buyers just walk up to them.
• Franchisors provide training to franchisees that can help them to be successful.
• Franchisor can support the franchisees financially and help in investing capital
• Franchisors use standard procedures, which are tried and tested techniques and share them with franchisees. Standardization in the supplies, products and services provided helps ensure that the entrepreneur will maintain quality standards that are so important.