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8 reasons to expand your business through the Franchise Model

One of the very important decisions in a business is its expansion. One needs to consider various points like finance, risk, and return on investment before making the final call.

If you have a good brand name then there is a great option for you in the form of Franchise. Today, we have here for you 8 reasons why you must consider amplifying your business through the model of Franchise.

1.Investment
The capital for investment, in this case, comes from the franchisee. So, the person whom you sell your franchise rights to will make the investment as their part of the deal. Everything including equipment, fixtures, furnishings, and inventory is purchased by the franchisee with its own money.

2.Fast Expansion
More franchise you sell, the faster your business expands and all this without any major expenses from your end.

3.Less Risk
As all the expansion investments are made by the Franchisee, there is not much risk involved for the franchisor in this model. In case, the franchisee goes into losses, the Franchisor will not have to incur the financial burden.

4.High Return on Investment.
The franchisor does not make financial investments in the franchisee, but he/she is given a part of the profit by the franchisee

5.Less Managerial control
All the franchisees have to appoint their own staff. This reduces the work of the franchisor.

6.More committed workforce
Since the franchisees are the ones who invest in the business, they are more committed to making it a success. They are more to lose and hence they don’t leave any table unturned to make profits for the business.

7.Across cities and countries
Your business can spread across the country and even go abroad at minimal cost if you find a franchisee who’ll be interested in your business model.

8.Low regional barrier
Regional barriers like state laws, taxes and most importantly, the language are all tackled by the franchisee. Therefor these setbacks do not affect the growth of the business.

Hopefully, you will consider the road of franchise when you think of expanding your business next. Jawed Habib Hair Salon, US Dollar Store, Kidzee are some of the brands in India that successfully implemented the franchise model into their businesses. For more information on this, please call on 97178-99655 or email us at info@franchisezing.com

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