If you want to make your business grow or you want to have a small business, you should consider franchising. What is it? Well, franchising is defined as the method for business expansion and distribution of the goods and services by means of a licensing relationship. When it comes to franchising, the franchisor will not only specify the services and products that would be provided by the franchises but also gives them an operating system, support and brand. So far, there are over 120 different industries that make use of franchising as their route to market that include automotive, lodging, personal services, business services, residential and commercial services and a lot more.


  • Access to better talents – franchising is an excellent way of finding talented individuals who can manage the locations of your business and provide them bonuses or incentives for their perseverance and hard work. The most qualified and hardest working individuals generally choose to invest in running a business of their own for profits instead of taking a salary as a worker.
  • Simple expansion capital – franchising is likewise an outstanding way of obtaining expansion capital. Since your franchisees are paying to purchase outlets within your chain, your business will have more locations without spending more capital or having to borrow money from banks or request financing from investors.
  • Reduced growth risk – franchising could also generate a high amount of financial return for a relatively small risk. Compared to adding company-owned outlets, if you franchise then you are putting relatively small amount of cash in adding every location. When you have a great business model then you could earn high royalties from sales at these business outlets.


Generally, companies and businesses prefer to get started with franchising for one common reason: lack of people, time and money.

The primary barrier to business expansion faced by business owners these days is capital insufficiency. Franchising let the companies to expand with no risk of debt or cost of equity. While franchisees give the initial investment on the unit stage, franchising permits expansion with least capital investment on the franchisor’s part. Aside from that, while it is the franchisee and not you, who signs the lease as well as commits to service contracts, it means that franchising permits expansion with no contingent responsibility, thereby, greatly reducing the risk of a franchisor.

The secondary barrier to business expansion is searching and then retaining decent unit managers. All too usual, an owner of a business spends months in searching for and training another manager just to see that the manager leave or worse, employed by another company.

Franchising is permitting the entrepreneurs to overcome most of such issues through substituting a motivated franchisee for the unit manager. Remarkably enough, while the franchisee comes with both investment within the unit and stake within the revenues, unit performance and productivity would often improve. Since the income of the franchisor depends on the gross sales and not profitability, monitoring unit-level expenditures will become substantially less cumbersome.

Finally, opening another location will take time. Search for sites, negotiate leases, and arrange for build-out and design. Then, it will be followed by hiring and training staff, and purchasing equipment as well as inventory. The final outcome will be that the number of units that you open within any specific span of time is restricted by the amount of time needed to do it right.

If you are thinking of franchising your business today, talk to experts. Times Entrepreneur is here to assist you. Let’s talk about how you can have people who are willing to invest in your business expansion.