Why is franchising good

Franchising - advantages and disadvantages

There are many advantages to franchising. We have summarized the most important franchise advantages for you below:

Rapid market entry: The existing, established franchise concept makes entering the market much easier. In addition, the franchisor actively supports the establishment - this includes, among other things, the location analysis and the specific property selection.

Tasks and duties of the franchisor

Minimized start-up risk: The franchisee benefits from the know-how of the franchisor right from the start. This largely avoids founding errors.

Well-engineered marketing strategy: Another advantage of the franchise is the joint marketing activities. While lone fighters have to take action themselves, franchisees can rely on the professionalism of the system headquarters.

Purchasing benefits: As part of a franchise system, every franchisee benefits from special conditions and purchasing advantages. A plus, because after all, the costs are shared among many.

Strong together: Being part of a franchise system also increases your negotiating position when it comes to raising outside capital. After all, the entrepreneurial risk as a franchisee of an established system is significantly minimized. A fact that also has a positive effect on the financing and expansion of the company. By the way: partners of franchise systems who are listed as full members in the franchise association are in a particularly good negotiating position, as they are preferred for loans, grants and guarantees.

The essentials in focus: Last but not least, the franchisee can concentrate on his core competencies, customer contact, on site. Further development, marketing or even controlling are usually completely in the hands of the franchisor. Another important franchising benefit.