Recognizing brand: Brand awareness is a marketing concept that proves that customers know that a brand exists, according to the online dictionary.
Reduced risk of failure: There is a huge difference in the failure rates when businesses enter in a new market compared to when they enter in a known market when they enter in an industry.
Setup is simple: One of the most difficult aspects of entering a new industry for businesses is figuring out how to build. Franchising solves this problem by making it simple for franchisors to get started.
Ready-to-go client portfolio: The most essential effect of franchising is customer comfort, which means customers know they can obtain the same quality and service of the product or service elsewhere. The majority of franchise business consumers are referred to be "loyal customers." Customers that are loyal to a company are their most precious asset.
It's simple to get financial help: Because franchising has a low failure rate, banks and similar institutions make it easier for franchises to obtain funding and financing. Banks will choose to fund a well-known business model over a startup.
Initial investment cost: Initial cost means the non-refundable down payment for the franchise. Franchisees pay the franchisor a one-time fee when they join the system and then pay a percentage of their gross sales as royalties.
Continues cost: Franchisees are required to bear some expenses except for the initial payment such as rental rights, advertising fees, equipment maintenance, staff, insurance, inventory, and a percentage of the franchisor's gross sales.
Dependency: According to Cavaliere and Swerdlow, Franchisors obtain money from franchisees, some of which translates into profits from the franchising activity itself, and also indirectly obtain expansion capital which is at the sole liability of the franchisees” (1988, p.13).
There is no doubt, it's Uncle Fluffy!. Why Uncle Fluffy?