What Are The Advantages For A Franchisor?


3 Answers

Anonymous Profile
Anonymous answered
Business becomes more popular and known
Anonymous Profile
Anonymous answered
Receives a percentage of gross sales
expands brand
support for national advertising campaign
negotiating support for national contracts with suppliers
marketing and distribution costs are shared by the franchisee
Mehreen Misbah Profile
Mehreen Misbah answered
A franchise is a contract between the parent company (of reputable name mostly) and the entrepreneur, where the latter is empowered to use the name of the parent company and generate business. The parent company is the franchisor while the entrepreneur is called the franchisee.

Amongst the top advantages of franchises, the first one is the expansion of distribution and enhancement of impact without any kind of additional capital investment. Moreover his company name manages to get community acceptance as a result of the local franchisee who is operating it. In addition to that the marketing and distribution costs are shared by the franchisee. Also there is a flat fee that is an additional earning collected from the franchisee every month. Last but definitely not the least, a firm share from the profits are always the franchisor's domain.

There are many more advantages for a franchisor in this business but these were the topmost ones.

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