Franchising is the modern way to raise capital.

The cost of franchising is often a smaller investment than the cost of establishing even one new outlet. After paying the cost of the franchise program, the remaining costs of expansion (as well as most of the risk) are assumed by franchisees. And since franchisees usually pay the franchisor an up-front fee and royalties, the right strategy for selling your franchise idea can become an immediate high-impact low-risk revenue source.

Franchising can provide the capital for rapid growth, especially if you fit into any of these scenarios:

• If your business doesn’t have the capital, or the people, or even the time to create a company-owned growth system;
• If your business has the potential to grow faster than most company-owned programs;
• If you want to supplement an existing distribution system;
• If you need to improve systems through tighter controls or more motivated management.