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Why Franchise?
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WHY FRANCHISE?
- RAPID EXPANSION: The franchisor is able to devote his time to managing the company while his franchisees operate the branches on a day to day basis.
- MANAGEMENT TEAM: The franchisor has a motivated team of local owner managers operating his branches.
- EXPANSION CAPITAL: The franchisor is able to expand rapidly using other people's capital.
- MAINTAIN OWNERSHIP: The franchisor expands rapidly but never dilutes his ownership of the parent franchise company.
- INCREASE SALES: Because the local manager is the owner of the business, research has clearly shown that sales will exceed those of a company owned location.
- FASTER PENETRATION: Franchising allows a company to gain a foothold in multiple markets before the competition has an opportunity to fill the space.
- CAPTIVE PRODUCT MARKET: The franchisee can be a dependable and continuous outlet for company products.
- LOWER OVERHEAD: The franchisee assumes more local care of the support structure needed to maintain multiple outlets.
- FEWER EMPLOYEES: The vast majority of employees are those of the franchisees, not the parent franchise company.
- REDUCED RISK: The risks associated with rapid expansion are diluted throughout the system and franchisees.
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