Comparison of Benefits between Franchisors and Franchisees

Franchisors

• The person who gets the advantage to set the rules
• Less capital to expand
• Gets royalty yearly from franchisee
• Easier to gain popularity by increasing franchisee
• Get more chance to become the market share leader by selling the trademark to another individual

Franchisees

• No need to think of any rules for the shop
• Use some capital to take the trademark and sell the same product
• Can get help easily when dealing with some specific problem
• No advertising needed to make the shop popular.
• No need to invent new product to sell and if the franchisor invented new product, they can also sell the same thing