What is Franchising?

Franchising is a corporate expansion or growth strategy for distributing their goods or services. Alternative expansion strategies would include Company Owned Stores/Branches, Direct Sales Force, Licensed Agents, Distributors, Internet Sales, Etc.

The benefits of franchising to the Franchisor include: minimized risk with a shared investment with the Franchisee, quicker market penetration, enhanced brand awareness and recognition.

The Franchisor’s success is driven by the success of the Franchisee and the Franchisee is said to have greater motivation than a direct employee because they have a personal stake in the business.