What is Franchising?

Franchising is contract-based continuing relationship in which a franchisor provides a licensed privilege to the franchisee to do business and offers assistance in organizing, training, merchandising, marketing and managing (know-how) in return for commercial interests.

What are the benefits of Franchising to Investors?

  • It has national or international standards and quality together with the trademark.
  • There is a constant customer and business opportunity provided by well-known brands.
  • Training services and expert personnel supports are provided to the franchisee.
  • Techniques of the franchisor are used for finding, hiring and raising qualified personnel.
  • With the support provided in financial, commercial and personnel matters, technical functions are given more importance and success chance is increased.
  • Minimize risk and management problems faced by small businesses by acting jointly with the franchisor.
  • Franchisee employs financial and legal advisors.
  • Franchisor is constantly making use of research and development efforts.
  • It is possible to use scientific techniques in the establishment stage and selection the establishment of the enterprise.
  • During the establishment process, financial support can be provided for leasing etc..
  • Save money on advertising and promotion costs.
  • The franchising system reduces the risk of establishing self-employment by removing the entrepreneur’s loneliness.
  • Payments made to the franchisor are initially less than sum of the error fees to be made for an untried business, even though the new business is more than the pre-investment.

 

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