Why Did Franchising Succeed?

Franchise Key:

Four reasons can explain this fact:

1. A technical and commercial partnership is necessary for independent retailer faced with the power of big groups

2. The success came from the combination of a “know-how” and from the concept of the franchisor with a “company spirit” of the franchisee

3. Structures and means are more simple and less expensive than in a subsidiary because a good franchisee is self-motivated and does not have to be stimulated

4. It is a quick and growing system to cover a market because investments and skills are shared.

Source: http://www.acfranchise.com/.