Top Seven Benefits of Franchising

Top 7 Benefits of Franchising:

Franchising has become one of the most sought after business options in the contemporary world. The franchising industry is a trillion-dollar industry worldwide, providing thousands of entrepreneurial opportunities and creating employment for millions. In India also, the franchising sector has seen a tremendous growth in the last few years. There are numerous benefits that accompany franchising. Some of them are listed below:

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  • Taking up a franchising business reduces the risk factor. Starting a new business involves a great deal of risk because the acceptance level of the product or service is unknown. But, it is not the case with franchising.
  • Another important benefit of franchising is that the Franchisor not only shares the brand image, but also the knowledge, experience and technical expertise with the franchisee.
  • A franchisee besides getting the freedom to own and run his store also gets to avail the support system rendered by the franchisor. The franchisor provides employee recruitment, training and facility management assistance.
  • Franchisor helps franchisees develop a business plan. This helps in giving a kick start to the business and thus reduces the work for the new franchisee.
  • The most significant benefit of franchising is the branding and marketing support. The franchiser usually prepares and pays for the development of professional advertising campaigns and runs various marketing programmes to promote the franchisee.
  • The franchisee can also save on the material and goods costs, as the franchisor usually has contacts and tie ups with vendors and thus purchases goods on a bulk price. This consequently leads to an increase in the margins of franchisee.
  • Last but not the least, taking up a franchise also provides support in arranging for finances. The franchisor already has tie-ups with some leading financial institutions to lend money to franchisee.

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