Foreword

Franchising can allow a business to rapidly expand into new markets without the need to hire and train a large number of employees or invest in new infrastructure.

Franchising can help build a brand and increase brand awareness in new markets. Franchisees are typically required to operate their businesses under the franchisor's brand name and adhere to the franchisor's standards, which can help build a consistent brand identity across all locations. 

A business can ensure that its products, services, and customer experience are consistent across all locations. This can be achieved through standardized training programs, operating procedures, and marketing materials provided to franchisees. 

Franchise allow the franchisor to transfer some of the risks associated with opening and operating a new business to the franchisee. Franchisees are responsible for investing in and managing their own businesses, which can help reduce the risk to the franchisor.

Franchising can provide a source of ongoing revenue for the franchisor through franchise fees and royalties paid by franchisees. As the number of franchisees grows, so does the potential revenue for the franchisor. 

Franchising allows a business to access capital without incurring debt. Franchisees pay an initial franchise fee and ongoing royalties to the franchisor, which provides a source of revenue for the business. 

Franchisor who have registered their franchise business with the government is typically viewed as being more established, reliable, and trustworthy compared to non-registered franchise businesses and will always be able to participate in an umbrella program by relevant financial institution.