skip to content
blog home Start a Franchise Top 5 Benefits of Franchising a Business

When making the decision of whether or not to franchising a business it is important to evaluate the value and benefits franchising can have for your business.

The top 5 benefits of franchising a business include:

  • Further expand your brand geographically – Franchising a business is a great way to reach geographical areas that you yourself may not have been able to reach alone. Franchising your business in different states and having franchisees open up their own locations within those states is a great way to get your business in a wide variety of geographical areas.
  • Create additional exposure – The more locations your business is in the more visibility your business will get. Franchising a business is a great way to allow your brand to be exposed with each new franchise location that is opened.
  • Funding expansion – When franchising a business a franchisor generally requires new franchisees to pay an initial franchise fee. In addition to the initial franchise fees‚ a franchisor also collects recurring fees which the franchisee is required to pay. This money can be used to reinvest in the brand and better services for both the franchisor and the franchisee.
  • Group idea creation – Having franchisees can be beneficial for idea creating. Speaking with franchisees on a regular basis can give the franchisor a different and fresh perspective and can result in new ideas that will ultimately better the franchise.
  • Individual location success – Often times since franchisees have invested (and continue to invest) their own money into their franchise location and the franchise brand they are more prone to upholding their presence at their location in a better manner than someone who is hired would. They have more to lose (their own money) so they put more effort into making sure their customers are having a good experience with the brand.

One thing to keep in mind when considering franchising is it is not right for every business. It is important to figure out if your business would be best expanding by franchising‚ licensing‚ or other methods.

Related Articles:

By Charles Internicola January 25, 2013

Franchising Guides

The Ultimate Guide to Franchising Your Business

New to franchising? Do you want to learn more about franchising your business, where to start, the steps, and how to know if you are doing it right?

Learn More

Is Your Business Franchisable and Should You Franchise?

Franchising may be the next big step for your business and represents an opportunity to grow your brand. So, how do you know if franchising is right for you? How do you know if your business is franchisable and, if it is, whether or not you should franchise your business? To answer these questions you must evaluate whether or not your business is franchisable and, if it is, whether or not your individual goals and your business goals align with franchising and establishing a franchise organization responsible for on-boarding, training, and supporting franchisees.

Learn More

Licensing Vs. Franchising

When considering expanding a business both franchising and licensing are possible options. Each option however comes with different rules and regulations. Prior to moving forward with franchising a business or licensing a business it is important to understand the differences and how each may have an affect on you.

Franchise Lawyer Charles N. Internicola wrote “Licensing versus Franchising” for the very purpose of allowing successful business owners to understand the difference between licensing a business and franchising a business.

Learn More

Guide to Selecting a Franchise Lawyer

If you have questions about franchise lawyers, what they do, how they can help, the cost, and how to select the right franchise lawyer for you, then this guide will help.

Franchise lawyers advise and represent individuals and businesses on legal issues that involve franchising a business, preparing an FDD, filing and renewing FDD registrations, buying a franchise, and litigation involving the franchisor and franchisee relationship. The role of a franchise lawyer varies depending on whether he or she represents the franchisor or the franchisee.

Learn More

Item 19 Financial Performance Representations

Check out our guide where we discuss how to plan and properly disclose Financial Performance Representations in your FDD.

Learn More

Franchise Sales Compliance Guide

Are you a franchisor or a part of a franchise sales team? Do you want to learn more about franchise sale compliance and ensure that your sales practices comply with franchise laws and are consistent with best practices? Then this guide is for you.

In this guide you’ll learn the fundamentals of franchise sales compliance including the franchise laws, regulations, and best practices that your team should have in place for every franchise sale.

Learn More
Close Overlay

Let’s Talk

With services to make your growth strategy simple, cost effective, and with a team excited to help you, let’s talk about how we can help grow your business.

Fill out the following form and we’ll contact you as soon as possible. To reach our team directly, give us a call at (800) 976-4904.