1. Franchisees require less initial capital than independently starting a company and can use proven successful strategies and trademarks.
2. Franchisees are provided with significant amounts to training not common to most entrepreneurs.
3. The franchisor benefits because it can expand rapidly without having to increase its labor force and operating costs, using much less capital.
4. Franchised stores have a higher margin for the parent company than company owned stores because of minimal operating expenses in maintaining franchised stores.