Development is accomplished primarily using the capital of others, the franchisees.
Risk of business failure is spread, and shared with franchisees that own and invest in the franchise. Make extensive use of advertising to increase customer recognition of your product or service, with the advertising paid for by franchisees rather than your company. Take advantage of a top quality pool of talented people who want to own their own businesses and are not available as employees. Local owners are recognized as more motivated and efficient than employees, and often generate greater revenues. In relation to the potential financial benefits, the outlay to establish a franchise program is not substantial.