Franchising is a halfway house between being an entrepreneurial business owner and taking a job with all the certainty and uncertainty that entails.
Franchising is a common next-step for managers who leave their safe employment and want to set up and operate their own business. But they don’t have the ideas or the appetite for a wholly new business of their own. As a business model, franchising offers significant benefits to:
- the person granting the franchise (franchisor)
- the person operating the franchised business (franchisee), and
But with benefits come inevitable costs and risks. So, in this article, we’ll look at the Big Idea behind franchising, what it is and what it means for business people on either side of the transaction.