Major benefit a franchise offers a franchisee is a strategic brand identity that has developed over time creating a cumulative market impact. An independent business couldn’t afford to spend millions of dollars that some franchisors have expended to create market penetration the likes of McDonalds and Subway. Some franchisors have been established decades creating easy recognition in the market place.

This can be one of the largest expenses for any new business. For advertising to be effective it has to be repeated regularly and therefore becomes expensive. Even if you have a prime location, if customers don’t recognise your product they won’t come in and buy. Franchise fees offer national advertising campaigns that would otherwise be cost prohibitive.

Customers today want guarantees that support the name and product. Brand recognition gives them that assurance. Shoppers that may have experienced a product at another centre know what to expect and can become repeat customers in your store.

Franchisors that operate on a national footprint have the ability to negotiate excellent supply agreements with wholesalers that contribute to a higher gross profit margin for the franchisee. That allows the franchisee to be able to pay staff wages and other expenses leaving a profit for the franchisee.

Franchisors generally have well developed systems and procedures that have been produced over many years. This is a benefit when applying for finance to assist with the purchase of the business as the banks understand staff training and lease negotiations would be well taken care of, which frees up the franchisee to run the business and getting money through the cash register!