There is hardly an industry that isn't affected by franchises. For the franchisee, it offers an opportunity to own and operate a business with an enhanced probability of success even if you have minimal business experience.
Research suggests that franchised businesses have a lower failure rate than independent small firms.
From the franchisor's perspective, they have an opportunity for controlled, rapid growth in a relatively short time. Business format franchising involves a more complex relationship that includes the franchisor providing a complete business format and system. Business format franchises often provide a range of services, including site selection, training, product supply, marketing plans and even assistance in obtaining financing. For the franchisor, expansion is usually the number one reason for franchising. It helps to limit risk while making the best use of limited capital.