Franchising is the concept of allowing someone else to legally use your successful business brand and model. By doing so, they are called franchisees and they will literally duplicate the business for you in another location.
It’s a great idea for YOU because you can multiply branches by franchising your brand and business model. It’s a great alternative for THEM because it’s less risky and much easier for them to utilize a brand and system that is already proven to work. Thousands of companies around the world have found huge success and are generating millions of dollars through franchising, and with an effective franchise development plan!
You may not realize it, but many brands that you patronize utilize franchising as a part of their global business strategy. McDonald’s, Jollibee, Potato Corner, 7-Eleven, Pizza Hut are just a few.
Franchising allows for a much faster domestic and/or global expansion of your business with minimal capital from you. There are no contingent franchisor liability for you. All risk is with the franchisee. Even more, franchising eliminates your day-to-day franchisor responsibilities because the franchisee will manage the business for you. Maintaining profitability, hiring and firing employees, etc, is their responsibility.