Final answer:
Franchising offers advantages for the franchisor such as expansion, capital, shared risk, and brand recognition. Franchisors have options like training, supply chain support, and marketing.
Step-by-step explanation:
The advantages of franchising for the franchisor include:
- Expansion: Franchising allows the franchisor to quickly expand their business into new markets without having to invest heavily in opening and operating new locations themselves.
- Capital: The franchisor receives upfront franchise fees and ongoing royalty fees from the franchisees, providing a source of capital for the business.
- Shared Risk: Franchising allows the franchisor to share the risks and responsibilities of operating new locations with franchisees.
- Brand Recognition: Franchising allows the franchisor to increase their brand presence and visibility by having multiple franchise locations.
Some options that apply to franchisors include:
- Providing training and support to franchisees
- Establishing a supply chain to support franchise operations
- Providing marketing and advertising support for the franchise brand