The Benefits of Franchising Explained
Franchising has evolved into a huge and profitable market in the UK. Many people wish to start their own business without the huge financial risks, and what better way to do this than by franchising. Both the franchiser and the franchisee can benefit tremendously from such a venture.
The benefits of franchising to the franchiser The franchiser benefits by way of entering into a new market without having to lose out financially. They can learn about the market through simply monitoring the sales of the products and do not have to worry about the day to day running of the franchise. Franchising provides them with valuable information about the market and is also a stepping stone for setting up their own business in the future. Franchisers receive a stipulated amount of money from the franchisee as royalties for using their brand name. So, no matter how well the business is performing, the franchiser receives the sum of money promised.
The benefits received by the franchisee A franchisee gets the head start in business they need by taking up an established brand name. They make profits on behalf of the franchiser and in turn gain the experience and contacts needed to set up their own business. In the long term, a franchising business benefits all parties involved.