Franchising A Powerful Economic Engine

Once a restaurant business reaches a certain level, where it experiences the right sales, enjoys great profits, and strikes stability, the restaurateur inevitably looks forward to and works for expansion. And one of the best ways to grow a small business into a national chain is franchising. Well, franchising a restaurant business is one of the most common ways of expanding and growing.
A franchise is basically a brand that an investor i.e., the franchisee has bought the right to use. The brand is established by the parent restaurant, the operations and running of the restaurants is fixed by the franchisor and the franchisee uses the brand name to earn profit. This is basically a contractual relationship with pre-defined norms and authority structures that define how the franchise is run. Franchising is definitely a powerful economic engine for a restaurant business. If you are still dicey with the thought of whether you should follow franchising as an expansion strategy or not, then here are some perks of franchising.

  • Bigger Brand Presence –This is one of the easiest ways of scaling a brand. When you franchise your restaurant, you generate brand awareness and this further gives you a bigger brand presence.
  • Greater Organic Marketing –Franchising is a great way of organic marketing. This form of expansion creates a network of people who will do organic marketing for you. It basically creates a flow of word-of-mouth marketing.
  • Better Resource Allocation –Expanding via franchising frees various resources from the franchisor’s end. This allows the business to better allocate the freed resources in the business. The limited resources can be put to better use as the burden of expansion is shared.

Whether to franchise a business or not, it is solely the decision of the owner. However, franchising is a great economic source and a branding boost for a restaurant business on the whole. If you are a restaurant business owner and still dicey about whether you should franchise your restaurant business or not, or have any queries related to your restaurant, then feel free to speak to our seasoned restaurant consultants. Find out how the ERC team can help you with your restaurant business queries by simply visiting our website i.e.,, or you can also connect with our experts directly at 1-647-209-4153.