There are a number of reasons to take up a franchise. As franchise experts often say: “People who come to us cannot do it entirely on their own.” The services of the franchisor therefore are indispensable and more than that the relation is ever evolving.
Most people believe that the low investment prompts the franchisee to make the final decision. But that may not be always the case. The following points makes it clear that there are a number of benefits that play a vital role to take up a franchise. These are:
Lack of knowledge: People who want to venture in any of the businesses may have a superficial knowledge. The franchisor, which has an established brand, is well versed with all the processes and procedures of business. Therefore, the franchisor is itself a security to the venture started by the franchisee.
Continual Support: The agreement between franchisor and the franchisee leads to a prolonged relation between the two. The support of the franchisor is not supposed to end after the establishment of the business of the franchisee. Franchisee, by partnering with the franchisor agrees for continued support, which is very crucial during economic crisis bankruptcy.
Business Promotions: It is the obligation of the franchisor to promote the brand and therefore business. Franchisee as such enjoys the benefits of the promotions that are carried out by the franchisor itself.
Competition: The unique position and popularity of a known brand severely limits the options for any new competing brands. If there are many such brands competing against each other, the newcomer does not stand a chance. To cut the competition, the best way is to make an alliance and joining, as the franchisee is the best solution.
There can be many other reasons that convince the franchisee to associate with the franchisor. Personal endorseme