The system of using a successful business model of another firm is called franchising. The growing importance of franchisee in the development of modern business is due to the following reasons – 

1. Minimum Investment – 

Franchisee is just a temporary business investment. Business is not bought to be owned but is acquired at lease or rent for a certain period of time. Therefore, any people can select any business according to their will and budget, and with that estimated budget, they can easily start a franchisee.

2. Training and Technical Knowledge – 

A franchisee owner does not require a lot of technical knowledge and training, a little business study and social network, and the ability to bear the risk can help him/her to start one. National/International advertising. training and tangible and intangible support services are usually provided by the franchisers.

3. Business on the available trademark – 

The most important benefit of the franchisee is that the company whose franchisee has been taken can be easily encashed.

4. The need of Advertisement –

The franchisee is a kind of business in this modern era of business, where, a person can sell the product available in his showroom in the name of the company, therefore he/she does not require to advertise the product.

5. Operation & Control – 

Franchising is the only means by which entrepreneurial capital investment can be obtained without losing control of the operation of the chain and a distribution system can be built for services’ office. After building and executing the brand and formula, the franchiser can sell the franchise, and by minimising the risks, using the capital and resources of their franchisee, they can expand rapidly.

6. To get established in the market in a short time – 

Any refined company which has already established its name in the market, would only give its name to be used by another country on the basis of some conditions, so, that business grows rapidly and hence the company does not need to rectify again and again.