Advantages of Franchising

Advantages of Franchising

Since the turn of the century, the commercial franchising industry in Saudi Arabia has seen exponential growth. A large number of franchises of global brands now operate in the entire country.  Below are some of the reasons why people consider opening a business by joining the franchise industry.


The main Advantages of Franchising is that the product or service is already established and widely recognized. Choosing commercial franchising as a business model helps the business owner skip the painstaking process of introducing the product or service in the market. Establishing a brand takes years of efforts, but this has already been accomplished by the franchisor for the franchisee. For example, McDonald’s is a beloved brand. Its franchisees enjoy the same level of recognition from its patrons. 


Moreover, the franchisor has already done the work of developing and establishing a sustainable business process for the franchisee. Ordinarily, a start-up business is sure to commit rookie mistakes, but a business franchise guarantees that this is not likely to happen anymore.


Other Advantages include:


  1. Training Programs. Franchisees have access to training programs before they open their business. Training programs include, among others, the technical know-how of the business and workforce management.


  1. Good credit standing with lenders and financiers. Would be creditors of a franchised business are way more likely to get on board knowing that the potential for success is very high in business franchising. Any favorable experience that a lender may have had with another franchisee of the same brand will surely matter when it comes to approving applications for loans.


  1. Technical support. one of the advantages of Franchising is that the international franchisors more often have a dedicated team who are qualified to assist when problems arise. In contrast, start-ups are likely to make mistakes, sometimes leading to the closure of business, in the absence of an expert to back them up.


  1. Exclusive suppliers. A franchise gives a franchisee access to suppliers which are not normally accessible to ordinary businesses. Franchisees can also take advantage of bulk discounts, as well as limited edition products under a franchise agreement.


  1. Advertising and marketing assistance. In a commercial franchise, the franchisor takes care of marketing research and advertisements. Their experience is sure to generate more influx of customers. After all, they would not be in the franchising business if they do not know how to make their business attractive.


Starting a business takes not just capitalization but also guts and knowledge. A business franchise is especially beneficial to any person with little to no experience in his chosen field. Of course, choosing a franchise or franchisor is another thing to consider and it is no easy task. If in doubt, seek expert advise from a franchise attorney.

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