Some of the most profitable MNCs have expanded their business with the help of franchisees. Restaurants such as KFC, Dominos, and McDonalds have built business empires over the years by adhering to the franchise form of business.
You can also see this model in sports teams in global leagues such as English Premier League (EPL), NBA and NFL, among others. So, the viability of this business format is beyond doubt. However, it is essential to incorporate the guidelines correctly. At the same time, this model may not appropriate for all industries. So, a selective approach needs to be adopted for the best results.
Become a franchisor
If you want to expand your business without making any financial investment, then you can consider franchising. You will have to make sure that your company is a well-known brand, and the quality of your products and services is top-notch. In such a case, entrepreneurs will readily agree to use your brand name to grow their business. They will make all the financial investment, but you will have to train them.
Franchisees can write success stories
Setting up a business under your brand name requires a lot of hard work and patience for growth. Yes, you can get things rolling at a relatively low investment, but things may not always pan out your way. But if you obtain the franchising rights for a reputed company, you can start making profits in minimal time.
Branding and promotion
In the franchise model of business, the franchisor has to handle marketing and advertising. The franchisee can also take up this task at a local level after they get the go-ahead from the franchisor. Digital marketing has become a crucial aspect in the present era, and the inputs from franchisors can be beneficial in taking things forward.