Franchising a business refers to the act by which a firm buys rights of a business logo, name, and logo from franchisors. If my organization were to go global, I would opt for franchising rather than exporting. There are many factors which motivate me to choose to franchise. One significant advantage is that high chances of business failure are limited by franchising this is because my business will majorly depend on ideas that have been proved and acknowledged. I will be at a position of first confirming how other enterprises have gained success by observing them. Brand awareness is another motivating factor ( Sun, & Lee, 2018) . I do not have to take most of my time telling people more about my product, business idea or even reading blogs to get tips on how to lure investors. When I buy a franchise, the heavy lifting is done hence customers already know my product. Therefore, this serves as an additional benefit to my organization.
Furthermore, I will receive ongoing support from the franchisors hence a lovely thing about franchising as compared to independent business where no single support is an offer. Franchisors are famous for giving aid and also providing training to keep chartering in shape ( Knight, 1986 ). Furthermore, they take a step of sending support specialist to the field to monitor things and also train their franchisees with the aim of molding them into excellent business people, managers, and leaders. I will experience a faster return on investment. In many cases, it takes a very long time for one to establish clientele when the business is too young but as for the example of franchising, the story is different. As a franchise, one already has readymade customers since the brand has existed since hence they have built their trust in it. The franchise will consequently experience a massive flow of profit. With no doubt, I will choose to franchise for the sake of my business success over and over again.
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References
Knight, R. M. (1986). Franchising from the franchisor and franchisee points of view. Journal of small business management , 24 , 8 .
Sun, K., & Lee, S. (2018). Competitive advantages of franchising firms and the moderating role of organizational characteristics: Evidence from the restaurant industry. International Journal Of Hospitality Management . doi: 10.1016/j.ijhm.2018.07.007
