IGCSE, A Level Business Student Forum

[KN] Quicker growth of the business.
[AN] Franchising makes the business to expand more rapidly.
[AN+] Franchiser invest their own capital which reduces the financial burden on the business.

[KN] The risk is shared.
[AN] The risk can be easily shared among the franchisors.
[AN+] If one franchise fails to produces more output the loss can be recovered from a different franchise.

[KN]Increased sales
[AN] when franchised branches of the business make sales in their respective areas ,more markets are targeted and more sales are made
[AN] leading to higher market share

[KN]Expansion without investment by owners on the brand
[AN] More franchises means more outlets are being set up which leads to sustainable growth of the business
[AN]leading to better brand recognition

[kn] cost-effective business growth/expansion
[an] enables the franchisor to enter new markets and locations, as well as obtain knowledge and input from local businesses
[an+] brand image created and business will be well known, increased amount of customers and more revenue

[kn] flexibility in work
[an] business activities will be managed by a franchisee
[an+] less stress for franchisor since franchisee will be familiar with the area and can advertise accordingly

[kn] franchise allows the franchisor to rapidly expand the business without ongoing capital investment
[an] as the franchisee will pay the capital and make the brand visible in different areas while franchisor would provide the guidelines brand image and ongoing support
[an+] which helps franchisor earn profit through expansion in new locations
[kn] increased brand recognition
[an] franchisees help to open the brand in new and different locations and are responsible themselves in marketing and promoting
[an+] while they follow the regulations given by the franchisor giving the benefit of more control and less work to the franchisor

[KN] Brand Recognition.
[AN] Franchising can increase brand visibility and recognition and so this will increase brand visibility to a large scale.
[AN+] Thus, this will further result in increase in customer trust and awareness.

[KN] More generation of revenue.
[AN] This is due to the extra charges by the franchisor for the franchisee, hence will result in increase on spending on factors like marketing etc.
[AN+] Thus this will lead to increase in brand image.

(KN) the franchisee buys a license from the franchisor to use the brand name
(AN) thus due to this the franchised business is able to expand much more faster,
(AN+) than if if the franchisor was financing all of the outlets, and hence time is saved.

(KN) the management of the outlets is the responsibility of the franchisee
(AN) due to this franchisor doesn't have to worry about spreading the brand image further across countries by financing it themselves,
(AN+) thus due to this alot of time is saved, as well as effort from the the franchisors's side.

KN] Quick growth
[AN]Compared to traditional methods, franchising enables a franchisor to grow their business more quickly and efficiently
 [AN+]The franchisor may see an increase in revenue and market share as a result of this rapid expansion.

KN] Lower operating risk for the company
 [AN]The risk of operating the business is decreased because it does not require large capital investments
 [AN+].As a result, this incentivizes the franchisor to contribute to the success of the company.