| Some motivations for opting to develop or join a franchise business. |
| Franchisor |
Franchisee |
| To develop and roll out a business format/system which will be sold for a regular fee to independent operators |
To be able to start a business without having to start from scratch alone while being an independent entrepreneur; being in the business “for yourself but not by yourself” |
| To develop the business with the added input of franchisee capital which increases the possibilities for the franchiser of rapid expansion of the system |
To buy into a system which, in principle, has been tested; proven successful in the given circumstances; |
To develop the business in locations beyond the franchiser’s natural boundaries of business (new and international markets) |
To gain immediate access to a market via the right to use the franchiser’s brand or trademark and to benefit from customers attracted to the brand
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| To develop a business in which the franchiser has his specific duties and obligations and the franchisees their own |
To benefit from the transfer of know-how and assistance during the term of the contract |
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Buying into an existing and branded business can enhance the survivability of a new franchised business in the first crucial years after start-up. |