Franchise Model of Business: Advantages & Benefits


Franchise Model of Business:

Franchise model– What’s that? There is nothing complicated and hard to understand in this concept since it is the mutual relationship based on legal grounds between an owner of a trademark and specific group of people who wish to utilize that particular trademark to promote their business. Generally they lay the methods in conducting business between two business bodies. I would say that Franchise model is the very essential apart from other common strategies for a business to yield positive results.

Independent, non-franchise businesses have a much higher chances of failure within their very beginning year than franchise oriented businesses. One of the most compelling reasons is that, in a franchise operation, the franchisor provides business expertise like marketing and advertising plans, management guidance, financing assistance, administrative support and training that otherwise would not be available to businesses starting from scratch.

Franchise Model of Business: Advantages & Benefits

Well, everyone wants to be independent in their business administration but when critical situations come no matter how great they are, they depend on reliable sources to guide them to get rid-off all the conflicts. The franchise model are meant for those people who have the desire to be their own boss but at the same time they prefer to be in the safer and comfort zone within a tried and tested business.


Through this they prevent themselves from entering into the painful path in the journey of business. This is best suited for ambitious individuals. Since in franchise model business someone has established the business already and ironed the wrinkles, the further works becomes easy for the successors to proceed. In few words a franchise can be defined as a conveyor belt that is able to fasten the business proprietorship.

Advantages & Benefits of Franchise Model:

The primary benefit of using franchise model of business is that it can decrease the degree of risk for the persons who are starting from their scratch. Because entering into a new business is always a risky thing. The profits of franchising include higher chances of success, sole ownership and good pick up capability in market within small period of time. It also gains moral support through ideas from their fellow franchisees. The other benefits of using franchise model of business are listed below:

  • Using franchise model for business is like stepping into a business that has already set foot successfully. Hence there is higher guarantee for the investment.
  • There is more flexibility in functioning. The operating system can be learned thoroughly before implementing it.
  • The quality of the brand is already known to people. They can be recognized easily since they are embedded in the minds of the customers.
  • The franchise will help you in getting good traffic by choosing the proper location to deliver.
  • They provide marketing tools and advertising campaigns to make a good impression that will promote the growth.
  • The feature of Centralized purchasing helps to get retail goods at reduced prices to the franchisees.
  • Well established franchisors often assist new franchisees financially either by direct means or through private lending bodies.

The key point for the successful implementation of franchise model in your business is the strong mutual understanding between the franchisor and the franchise. It is like a combined commitment since they share their goal for a certain period of time.

  • sophiana

    What is this? I m really unaware about a business model but now I come to know that a franchise is a legal and commercial relationship between the owner of a trademark, service mark, etc… Here is given advantages & Benefits of Franchise Model, so easy to understand!! Nice effort!