If you own a business and wish to grow it, you have several options. One of those is franchising. There are many benefits to franchising your business that may help you decide if this is the right move forward for you.

More Market Penetration

You cannot be everywhere. It is impossible for you to put your business in various areas and run them all by yourself. By franchising, Entrepreneur explains that you get help from others to get your business into a variety of markets. You can gain a greater market share without a lot more work. This is a benefit to your main location and every franchisee.

Capable Managers

Since your franchisees will buy into your business, they have motivation and passion that a typical manager does not. You know you are getting someone who has an investment in the business like you do. Having this type of strong management representing your company will be quite beneficial. You will find it is easier to grow and continue on a path of success with good managers behind you.

Lower Risk

If you were to expand your business on your own, you assume all the risk that comes with that move. However, when you franchise, your franchisees take on the risk. If the location fails, it is going to hurt their bottom line much more than it will yours. Franchise law is on your side in this respect because your contracts transfer the risk to the franchisee legally.


When you decide to franchise, you will find franchisees who pay you upfront for the rights to use your business. The fee they pay will cover some of the costs you have to provide them with what they need to start the business, but it also gives you some profit. Then, once the franchise is open, you will get regular income from it. This can provide you with capital that you can use to reinvest in your company.

To Franchise or Not

While only you can make the final decision, it is easy to see why many business owners decide to franchise. It can offer you a way to build your business without all the traditional risks and issues that come along with the process of expansion.

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