Advantages Of Franchising Your Business

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Kashiff Khan Insights On Franchising Your Business

As an entrepreneur from a humble background, I started with practically nothing. As I stepped into the business realm, I had a million doubts and fears while stepping on a roller-coaster ride of ups and downs before I got to where I am today. However, I never let my failures get the best of me and made sure to learn from each and every one of my mistakes. 

One of the best things I have learnt in my journey is to limit risks while finding ways to grow, and a consummate option to grow and flourish your business is franchising.

Here are the top five advantages of franchising your business to reach greater heights and find unimaginable success:


The most common barrier to expansion faced by entrepreneurs is a lack of access to capital. The primary reason entrepreneurs turn to franchising is that it allows them to expand their business without the risk of debt or cost of equity. The franchisor’s capital requirements will be lower because the franchisees provide the capital to open and operate the franchised outlet, allowing companies to grow using the resources of others.


The franchisor will not risk its capital, and moreover, since the franchisee and not the franchisor, sign the lease and commit to all the contracts, franchising allows for expansion with virtually no contingent liability; thus, significantly reducing the risk factor of running a business. 


Another stumbling block faced by many entrepreneurs is finding and retaining good unit managers. 

Too often than not, a business owner might spend months looking for or training a new manager, only to see them leave or, worse, get hired away by a competitor. And hired managers are only employees who may or may not have a genuine commitment to their jobs, which makes supervising their work from a distance a challenge.

  • Long-term commitment
  • Better-quality management
  • Improved operational quality
  • Franchisees typically out-manage and out-perform managers.


Every entrepreneur I’ve met who has developed something truly inspiring has the same recurring nightmare; that someone will beat them in the market with their own concept. And these fears are often based on reality.

To open up a single unit in the market takes time, donkeywork as well as capital. For most entrepreneurs, franchising may be the best way to ensure they capture a leadership position in the market before their competitors encroach on their place in the market. Franchising not only allows the franchisor financial leverage but also human resources and time. 


Franchising allows franchisors to function effectively with a much leaner organization. Since franchisees will assume many of the responsibilities that are otherwise shouldered on the enterprise home office alone, thus reducing overall staffing under them. Additionally, the franchisor will not be responsible for the day-to-day management of the individual franchise unit, whether replacing an employee or investing in frivolous purchases won’t impact your financial returns and will allow you to focus on the bigger picture.

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