Overview

When a business has developed a strong foundation and enjoys steady operations and a loyal customer base, the next logical step is to expand its business operations by entering new markets. However, developing a business usually comes with high costs and various business risks, all of which must be considered by the owners.

One of the more popular business development options is franchising since this not only eliminates the need to raise any capital or increase a business’s overheads but also allows a company to quickly scale up its operations while minimizing risk.[1] Furthermore, franchising also gives aspiring business owners or entrepreneurs a chance to run their own operations with the help and support of a larger organization with a proven track record of success.[2] All in all, this model is generally seen as a win-win situation for both the relevant business franchisors (“Franchisors”) and  their official franchisees (“Franchisees”).

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