- Franchisee has fewer risks as business format, brand and recognition is proven, and do not required to invest in market research and R&D during business development
- Franchisor provides employee training for franchisees and its staff members. Training programs provides a huge benefit for owners, since franchisor also provides employee policies and information about the procedures that are key in maintaining smooth business operations.
- A franchise provides franchisees with a reliable support system, covering area such as procurement, distribution relationship, standardization, legal and finances etc. This offers especially benefits owners who have little experience with the industry and who do not have a large network of contacts
- Franchisees can take advantage of the company’s nationwide distribution system when it comes to low-cost bulk purchasing
- Franchisees can save vast marketing and advertising fee on brand building as franchisors tends to centralized brand promotion