Why franchising is popular
It is unlikely that the popularity of the franchising business in the UK has escaped your observation. Fast food franchises are on the rise and there is at least one major fast food outlet in most towns. This is the situation in almost all countries. It is a fact that franchising is immensely popular nowadays.
Following are some of the reasons why franchising is so popular.
Degree of risk and business model
Franchising contains a lesser degree of risk compared to the independent business method. In franchising, the necessary training and support is usually provided by the franchisor. The overall business is conducted with the help of a proven business model which has been successfully implemented elsewhere. This is not the case with any other business method as the owner has to start from scratch and develop a business model on his/her own.
Finance, training and support
The terms training and support do not form a part of other business methods. However, in the franchising method, the necessary training and support is provided by the franchisor. The franchisor guides the franchisee and the other employees and gets them acquainted with the intricate details of conducting business on a daily basis. In addition, the franchisor might also provide a small amount to cover the initial expenditure. This is not the case with other business methods.
The above mentioned factors have contributed to the popularity of franchising.