For a company with a product or service to sell, franchising provides an excellent opportunity for rapid expansion without an enormous outlay of capital. It is a distribution system that allows a business to conserve capital, and at the same time achieve fast market penetration making it a very attractive proposition to most business owners.

One of the greatest advantages to them is that they get 100% commitment from their franchisees who have a stake in the business rather than staff or managers who simply work for a salary and may be less motivated. Franchising enables them to utilise the entrepreneurial skills of the franchisee network to achieve better results than might otherwise be achieved.

For any company franchising their business it is important that the business model has been carefully researched and refined. It needs to be simple enough to be capable of being replicated and the business system itself has to be clearly set out into an operations manual that covers every aspect of the business.

The Franchisor has to understand that this is not a quick way for him to make money, but a sensible way to expand and get on board people that are equally committed to the business success.

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