Advantages

1. •

   A franchisee can set up a franchise outlet relatively quickly with use of the franchisor’s brand and tested business model. Therefore franchisees might be able to see the results of their activities very quickly.

2. •

   A franchised business will have the benefit of advertising and marketing support provided by the franchisor as set out in the franchise agreement.

3. •

   A franchised business is often part of a network of franchisees which can provide support and assistance especially in the early stages of development.

4. •

   The high street banks may view franchises as less risky than other forms of owner-managed businesses. The banks might be willing to grant loans to franchisees on more favourable terms and they often have specialist departments that deal solely with franchises.

5. •

   A franchise agreement will be for a minimum fixed term which provides the franchisee with an opportunity to both establish the business and exit the business if things do not work