| Franchise has been one of the most widely know | | | | his end. One of the best advantages for the |
| methods of running a business. In this type of business | | | | franchisee is that he is investing into something that |
| usually there are two parties involved. Franchising is | | | | has already been a success story. This not only helps |
| mainly a concept of opening further branches of your | | | | minimize the risk but also makes it easier for the |
| business by partnering with other investors. Franchising | | | | franchisee to attract new customers. Starting one's |
| has become very famous with the time. The reason is | | | | own business from scratch is very costly and difficult. |
| very simple and straight forward. Franchising is | | | | It is very difficult for an entrepreneur to establish its |
| beneficial for both the franchiser and the franchisee | | | | brand name over night. This needs years of brand |
| both. For the franchiser, the most important | | | | equity building for the customers. By opting for a |
| consideration is the expansion of his business. It is very | | | | franchise, the franchisee has been able to save a lot |
| difficult for the franchiser to expand on his own, by | | | | of cost associated with the advertising of the business. |
| investing himself. If he tries to do that, it will take much | | | | Next bigger challenge for an entrepreneur is to |
| more time. The effort will be more decentralized and | | | | implement and successfully run a business model |
| this will also result in mismanagement at mass levels. | | | | planned in his own mind. For that he requires to tweak |
| If for example the franchiser had the management | | | | his management a lot to get a final best mix of the |
| ability to expand, even then they may need to have a | | | | most successful business running. On the other hand, if |
| lot of capital in hand to materialize his dream. By | | | | any problem occurs for a franchisee during the running |
| offering a franchise, they can not only expand, but | | | | of a franchise, then the franchisee can always ask for |
| expand at a very rapid rate. In this way the business | | | | a helping hand from the franchiser to sort the issues |
| has a wider presence, and they still own a sufficient | | | | out. It is also very challenging for an entrepreneur to |
| portion of the business. He can transfer all his | | | | run along with the new development stages of his |
| technology without transferring the title of the | | | | business. On the contrary, a franchisee has nothing to |
| ownership to any one else. All his copy rights regarding | | | | worry about. He gets all the upgrades without any of |
| making of the products or the idea behind the services | | | | the hassles. These are some of the major |
| remains in his own control. Franchisee or the person | | | | considerations which result into creation of franchises |
| who has invested into the franchise for a share in the | | | | and are helpful for both franchiser and franchisee. |
| business proceedings has also got a lot of benefits on | | | | |