Franchises advantages for the franchisor

• Rapid expansion. The franchisor is able to expand his business using others people's money. Franchisees provide the capital to open new outlets, enabling the franchisor to build a chain more rapidly than might be possible throught relying on his own resources alone, or borrowing money, or raising equity finance. Rapid geographical coverage is especially advantageous when a new product is being bhrought to market, to be one step ahead of the competition is fine, to be a country mile in front is better still
• Better management performance. Becouse franchisees own and run each new outlet, they are almost certainly better motivated, harder working, and keener to contain costs than are salaried managers. This wellspring of dedicated energy helps the franchisor to increase market share, maxiise effeciency and improve profitability.
• Franchisees are recruited locally and bring to the business the benefits of local knowledge and possibly contacts.
• In some respecs, the franchisor has greater control over each outlet than might otherwise be possible with geographically widespread chain. This becouse to some extent franchisees are tied to the franchisor, the may, for instance, be obliged to buy supplies or equipment from the franchisor. Each outlets in the network sells the franchisor's products or services and no others, wich is preferable to having them on sale alongside a competitors.s products. The franchisor decides how the products are to be presented and sold, further enhancing his ability to maintain margins.
• Since each outlet is owned and run by franchisees, they assume responsibility for tasks such as staffing, payroll, and controlling operating costs. This allows the franchisor to maintain a relatively small head office staff.