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Franchiser

Characteristics and advantages of the franchisers

We'll tell you about the main aspects of the franchisor's role

A franchisor is a person or company granting a franchise. Next we'll tell you about the main characteristics and advantages of the role of the franchisor:

  • Ability to increase the distribution network without the need to make major financial investments or hire more personnel.
  • Diversification of revenues.
  • Full control over distribution of the product.
  • Maintenance and protection of a standardized brand image.
  • Lack of major expenses for administrative control.
  • There is no employment relationship, but instead a specific contract between two independent businesses.
  • For the franchisor, the franchise represents a system of growth based on leveraging production, financing, and sales.
  • Cost-effectiveness of marketing and communication efforts.
  • Guaranteed independence and continuity, and belonging to a group that is identified and appreciated by the public.
  • Acquisition of the franchisor's experiences and up-front knowledge of the profitability and possibilities for the business.
  • Taking advantage of multiple economies of scale.
  • Faster launch, with improved chances for success.
  • Financial assistance to cover the initial investments required.
  • Taking advantage of the franchisor's R&D services, in relation to products and business management techniques.
  • Establishment of an area of territorial exclusivity.
  • Strategic plans for business start-up and continuity.

Characteristics and advantages of the franchisers