One of the main objectives of franchising is business expansion. When you compare franchising growth strategies with other business expansion methods, franchising generally carries less risks compared to other types of business ownership. Of course, owning any kind of business always carries some level of risk, but the risks are generally lower in franchising when compared to starting a small business from the ground up.
On the other hand, while franchising does mean less risk for franchisees, this type of business ownership also offers less degree of business control. Although the franchisee is the owner of the business, he operates under a franchise contract and is therefore required to observe the terms, conditions, standards and procedures of the franchise contract.
But if you’re looking to minimize your risks and don’t mind giving up a certain level of business control that comes with following an established set of systems and procedures as developed by the franchisor, then franchising might be right for you.