Because franchising solves the problems of...
Money. Franchising transfers the cost of expansion to franchisees. Franchisees provide the capital to open new locations. You retain control over the business system and never have to give up equity for investors.
People. Franchisees make excellent managers. Why? Because they have a vested interest in the business. It's not just a job - they own it!
Time. It's faster to open franchises than company-owned units, because franchisees use their own resources to open new locations. You simply supervise the process. You can have multiple locations opening simultaneously and don't have to take on debt with each new opening.
And franchising has Other Advantages...
Lower Risk. The legal, operational, and capital risks of business are shared with your franchisees.
Buying Power. With more locations, your power to negotiate products, supplies, and services increases, benefiting both franchisees and company-owned units.
Quality Control. Franchisees are legally required to follow your business system.
A Strategy For Better Business Operations. You are free to focus on "big picture" issues rather than day-to-day operations.
A Solution to Dealer Problems. You can replace under-performing dealers with vested, hard-working franchisees.
An Exit Strategy. Franchising improves business growth and profitability potential, so your business is more saleable.