Why Franchising Is A Smart Business Solution

Did you know that only around 5% of independent businesses survive in the Land Down Under in a time span of five years? On the other hand, 90% of franchised businesses in Australia can survive for longer than five years. This shows why franchising is smart for a business and can help you expand your operations and generate profits without going into losses. Franchising allows you to open another branch of your business with a new owner who will go all out to promote your brand and identity. This business model allows the franchisee to run a well-established business as well as learn the tricks and trades of the market so that they can rake in profits. Here are some major reasons why franchising is considered a smart business solution:

  1. Promote Your Brand

When you franchise your business, you can make your brand more visible to consumers and earn more conversions. Each franchisee will have their own marketing skills and techniques and will give your business a new appeal. Franchising is very helpful when you want to expand your home-based business to raise profits, as it makes more noise for your brand and generates more leads.

  1. Large Scale Discounts

Another major benefit of franchising your business is the volume discounts you will get. If you use one distributor for all your outlets, you can save on overall costs and enjoy large-scale economy discounts more than if you had just one outlet for your business. This would also benefit the franchisees as they already have a distributor ready for their franchise with discounted rates and won’t have to spend time and money finding a new one.

  1. Cost-Effective Technology

When you start franchising, you can also invest in major cost-effective technologies that you can use across your outlets for branding your business, training your employees, automating customer bookings, loyalty programs, feedback formulas and more. This way, you will get a better idea of what your target audience wants and can compile a list of the products and services that are doing well, and that are not.

  1. Fewer Risks Involved

If you had to start a business from scratch, you would have to find funding, get resources, build a website, or brand, get a domain name, find a niche and much more. There are also risks that your business might only survive up to five years, and thus you can end up with major losses and hefty bills. To avoid this, franchising is a better solution as you already have an established brand name, website and customer loyalty schemes, so you can expand on these operations and grow your business.

For instance, it would be more beneficial for a business like Target to establish more outlets due to its brand name and customer base than try and start a new business from scratch.

  1. Better Customer Service

Lastly, when you allow a franchisee to run your new outlet, they will put all their effort into it and will strive to reap profits for the brand. These franchisees will also already have a brand name to live up to and will thus work on their customer service. In a large operation with only one owner, it is more difficult to track what the customer needs and wants. It is also difficult for the business owner to build a connection with so many customers for their brand.

Since each outlet will have its own franchisee, it will be easier for these franchisees to concentrate on those particular customers in their outlet to see what they want. They can customise and modify the products and services accordingly and strive to provide the best customer service.


Franchising is a viable solution for many small and big businesses as it helps you operate an already established business and expand its reach and visibility. Each franchise can lend its own way of doing business to the brand and create a dynamic and profitable business that will generate high revenues and income. If you want to grow your business, you can find more tips about expanding and making your business more profitable by referring to the Rejer 8 site online for insightful tips.