How franchise concept is essential for small business growth

How franchise concept is essential for small business growth

The role of franchising in economic growth and development is significant as franchise business model stimulate employment and business opportunities. Franchising is generally an effective business model divided into different categories:
Retail franchise
Franchisee sells products or services from retail outlets. At present this type of franchise model is gaining popularity as operators in sector like food and apparel focusing mainly on retail franchise.
Single operator franchise
This type of franchise is handed solely by professionals who give fees to franchisor to use company’s brand name and products or services.
Business related franchise
Franchising is not only limited to few industrial sectors but it is utilized specifically by organizations offer services like accounting and tax, professional services, etc.
Developing countries like Indian and China is benefitted extensively due to franchise establishments over the past few years. China is populous country around the world, international brands are seeing it as land of opportunity to increase market share. On the other hand franchising in India is independently progressing, contributing effectively to national economy. Small scale industries are mainstay of Indian economy hence it is essential to develop more establishments. Through franchise business model small pocket entrepreneurs can easily expand business in different locations. Strong product and brand recognition leads to increased sales and productivity. It’s easier for small business owners to reach new customers by offering franchisee to investors. Even government of developing have realized the importance of small scale industries towards economic growth and development. For example, in India there are no tough laws for franchising because international as well as domestic companies easily expand. It goes with saying that Rome can’t be build in a day likewise small scale industries market didn’t develop in a hurry. Franchise is a tested and proven way to expand business, in fact, most convenient and cost-effective technique.

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