The iFranchise Group. Franchise Consulting Services. Advantages of Franchising While franchising provides franchisees with a proven system and the support of a much larger organization, the advantages to the franchisor are even more significant. There is rapid business expansion.
Capital formation comes from franchisees who provide the capital for their own operation.
The typical franchisor receives a percentage of gross revenues and does not incur risk for the profit or loss of the franchise location. Franchisees provide self-motivated branch management with a vested interest in the success of the franchise. The franchisee pays for training, and management training actually becomes a profit center for the franchisor. The franchising of the company product or service makes actual system expansion a profit center. Quite simply, franchising represents the entrepreneur's dream. . . .