Why Franchising Is A Smart Business Solution

“Why Franchising Is A Smart Business Solution”

Franchising is the best growth and expansion strategy for any business with a limited budget and resources. This is specifically accurate for small and medium-scale businesses. Unlike large businesses, they may not have the advantage of the huge capital and manpower necessary for establishing multiple branches in diverse locations.


For such companies, franchising is a smart business solution as it facilitates rapid market penetration, massive business growth as well as substantial and extensive product or service distribution. In this system of business, the franchisor, the owner of the business licenses rights and authorities to the franchisees to use the brand’s trademark, method, idea, etc as well as sell the products and services. The franchisees who buy the franchise pay a certain fee or royalty. Thus, the business owners can procure capital without the risks of debt while getting a new branch in a new location. Compared to independently owned businesses franchising ensures rapid growth as it leverages the efforts of franchisees.


Franchising a business can greatly help in increasing its brand awareness and recognition. The more a franchise network broadens out the more visibility the brand gains. This eventually leads to more customers, improved sales, and also higher market share.


There is no burden of management for the franchise company as franchisees manage business in their branch. There is no hassle of employing, supervising, training, and dealing with the problems of the staff all over the diverse branches. Because they have put their money into the business, these franchisees are more proficient, responsible, dedicated, and also committed to the long term than salaried employees. They are generally self-motivated and so put their best efforts into the business. Hence, they are absolutely reliable and trustworthy.


Subsequently, business owners can be liberated from the duties of day-to-day business operations to focus on crucial aspects of business such as brand management, innovation, etc. Franchising a business can bring forth a higher success rate than owning a business independently. As per the data obtained from the International Franchise Organization, 90% of franchise companies survive for more than 5 years whereas only 5% of independently owned companies can make it for that much duration.


Many times, business owners do not have any awareness of the market in a different city or country. So it is very likely that they may fail if they try to enter that market without proper know-how of the customer needs, demands, preferences, and behavior. It is also very difficult for an outsider to effectively analyze the competition, thoroughly understand the regulatory requirements, or decipher cultural nuances. Here’s where franchisees with their familiarity and profound knowledge of the local market play a huge role in successful penetration into that market. They can help with modifying the products, business concepts, and operations to adapt and fit into that specific market.


Franchising business model can help business owners in maximizing their purchasing power. By taking advantage of the collective buying power, both the franchisor and their franchisees can negotiate with the suppliers for lower rates, more discounts, extended warranties, rapid delivery, as well as other valuable perks. Such centralized purchasing can help in cutting down the cost considerably while improving profitability across the board.


Franchising offers a smooth business exit strategy while offering a safety net to the business owners. When they intend to exit the business, they can absolutely feel rest assured that the legacy of the business will be preserved. Also, they will get royalties continuously from franchisees, thereby making a passive income, forever.


Despite having these many advantages franchising, a business can be quite challenging and uncertain. The riskiness arises from its imperative factor – the franchisees. Picking unsuitable candidates hastily without evaluating their capability and background can dramatically impact the future of the business. Thus, the choice of franchisees in your franchise network can be a pivotal factor for your business.

So, selecting the right franchisees for your business who are proficient, qualified, and enthusiastic is crucial for the success of your franchise business. Go for the most trustworthy platform to find the best franchisees for your business.


Presenting…DhuMall iHotBiz – the world’s top international franchising listing & business opportunities platform to reliably and effortlessly discover your prospective franchisees.


DhuMall is a global marketplace for businesses of all sizes, industries, and nature to shop for numerous great products, services, business solutions, and opportunities available in over 200 countries and territories.


The platform has a huge database of well-qualified and zealous businessmen and entrepreneurs. Consequently, the probability of coming across the perfect candidates for your franchise business is optimized here, saving you a lot of time and effort.


If you are looking forward to adopting the franchise business model then try listing your company on DhuMall iHotBiz to find the best prospective franchisees for your business.

Reach Your Business Goals Through Franchising

Reach Your Business Goals Through Franchising

Regardless of the type and nature of a business, by and large, its goals can be narrowed down to – increasing sales, maximizing profits and revenue as well as boosting growth and expansion. And the ‘Franchise Business Model’ practically helps in achieving all of these goals.

A franchise business model involves a well-established business granting authorization to other small businesses to use its brand, trademark, and intellectual property as well as sell its products or services in exchange for a fee. The business that grants the permission is called the franchisor while the business that purchases the right is known as the franchisee.

But, how exactly does franchising help you in reaching your most significant business goals? Let’s have a look.


Lower Capital Investment

When business owners specifically those who run SMEs strive to grow, a lack of capital factor often trips them up. Trying to put up multiple stores at different locations requires a huge investment. Business owners often have to incur debts to fulfill the huge capital requirement which can be risky and stressful. A franchise model can be immensely beneficial in cutting down the financial burden ensuing from the attempts to grow the business.

Although the franchisors have to devote money to develop their business, they still get franchise fees to support their business growth journey.


Better Management

Apart from money business people have to put in effort and time to boost their business. Business owners recruit managers to get a helping hand in managing their business. However, hiring and training managers costs money. Often these trained managers quit, wasting the company’s investment in them as well as affecting productivity. Moreover, they need to be personally supervised to ensure that they do their job diligently.

By franchising their business, the franchisors do not have to take the trouble of recruiting and supervising the managers. In this business model franchisees manage the business and they do it more dedicatedly and enthusiastically as they too invest in the business. They are very mindful of the operational quality because they aspire to improve outcomes as well. Furthermore, they are committed for a very long term. Therefore, the franchisors can focus on important undertakings that can help the business grow and succeed instead of worrying about everyday business chores.


Efficient Growth

Growing your business by establishing multiple units at diverse places is quite laborious. It involves researching the market, searching for suitable sites, negotiating the lease, setting up a complete store, publicizing to the local people, and much more. But through franchising the entire process becomes easier as you have franchisees taking care of such tasks. By leveraging the efforts and investment of its franchisees a business can expand widely and rapidly and become scalable.

As a business spreads out, its brand visibility improves inevitably due to increased exposure. This together with promotions through various media can boost brand awareness while building customer trust. Moreover, franchisees strive to boost sales and profits because they want better investment performance.

Overall, this business model facilitates increased market penetration, growth in multiple locations, and large and wide distribution of products or services which ultimately helps to increase market share and dominate the market at a fast pace.

Now you can see how franchising is not only an excellent but also the fastest and relatively low-cost way to help your business reach its key goals.

However, adopting a franchise business model in and of itself does not guarantee success. The most critical factor of this business model is the franchisee. Getting the right franchisees ensures your franchise business grows profitably and successfully as per your expectations.

Unfortunately finding suitable franchisees for a business is not only tough and challenging but also very risky. If incompetent people or fraudsters enter your franchise network, not only your business progress will be impacted negatively but also its reputation may get ruined.


Introducing DhuMall iHotBiz to you! DhuMall iHotBiz is one of the top international franchising listing & business opportunities platforms which makes discovering the right franchisee a quick, smooth, and risk-free task.

DhuMall is a global marketplace for businesses of all sizes, industries, and nature to shop for numerous great products, services, business solutions, and opportunities accessible in more than 200 countries and territories.

We have a huge database of top-rated franchise companies that are trustworthy and aim to grow and expand across the world by using master franchising. The iHotBiz franchising listing platform includes a wide range of diverse franchise businesses such as Travel, Cruise and Hotel, Food, Health and Beauty, Education and Training, Computer and Internet, Entertainment, Restaurant, Cleaning and Maintenance, Fitness and Sports, Retail and Retail Services, Jewelry, and several other industries.

This trusted network of franchise companies makes passionate, proficient, and qualified business people looking for opportunities flock to the platform. Thus, it helps you come across the competent and apt people you need to build a successful franchise business.


Listing your company on the iHotBiz platform is very easy. You can select any of our basic, silver, gold, and platinum plans as per your business requirements. However, the premium plans are best suited for an unlimited number of countries listing which facilitates the international expansion of your business. It allows you to get your complete company profile professionally created and placed on the platform. Your company profile also obtains a verification icon as per your plan. It lets your company be a featured member on iHotBiz Homepage, as well.

Additionally, these plans drive your company to high priority in the search results of the platform. According to the plan you choose, you can promote your company’s small banner ads on the iHotBiz website too.

You can directly connect with potential franchisees through the ‘message directly’ feature of this platform which makes the entire communication process with them smooth and fast.

Franchise your business with DhuMall iHotBiz and attain your business goals successfully!

Finding The Right Franchisees

Finding The Right Franchisees

Franchising is one of the best ways to grow any business and is suitable for all types of industries. It is specifically the best growth strategy for small and medium-sized businesses that lack access to capital. Small and medium-scale businesses have a tight budget and the size of their team is also small. They don’t have the privileges that the larger businesses have, as well.

Franchising is free of the risks of debt or the cost of equity because it entails using other people’s money to grow and expand. The company does not have to invest much to set up new franchise stores and it can have multiple stores, which is not practical for the company to do on its own.

Apart from not having to invest hugely, the company also has the benefit of not having to deal with the hassles of employing and managing the staff there. The franchise model enables replacing managers with entrepreneurs (franchisees). Because franchisees invest their money and skills, they are more reliable and diligent than salaried employees. Also, they are committed for a very long term.

In any franchise business, the franchisee handles the responsibility of hiring and training the employees, carrying out day-to-day business operations, supervising staff, getting leads and making sales, etc. This lets the franchisors focus on imperative aspects of business such as brand management, innovation, etc.

Franchisees have a sense of ownership so they care about improving the operational quality. Franchising offers rapid market penetration, growth in multiple locations, and large and wide distribution of products or services.

The franchising business model brings incredible advantages. However, the success or failure of any franchise business depends on its most important aspect The Franchisees.

Finding the right franchisee is the most overwhelming yet inevitable part of the franchise business-building process. It is a long-term commitment too.

But often franchisors are impatient particularly when the business is in a cash flow crunch. They desperately hunt for franchisees and impulsively pick unfit candidates who are willing to invest without minding their backgrounds. And this dramatically affects the future of the business.

It is essential to have a systematic franchisee screening process so that the franchise network of the business is robust enough to achieve business goals and success. When looking for a franchisee identify what value the one you choose can bring to your business.

Check their qualification, experience, skills, and ability to carry out business as per your expectations. Examine if the candidate is passionate about the business and has the fortitude to go through tough times and would be a good team player while adhering to your business values. Verify their background thoroughly to avoid the risk of getting fraudsters associated with the franchise network of your business.

Where to look for Prospective franchisees?

Well, there are a number of ways to discover the perfect franchisees for building your company’s franchise network.

  1. Tradeshows

Tradeshow is a great way to network with people, face-to-face. If you can attend franchise tradeshows and events in the line of your business or related to your industry and market there is a high chance of finding the ideal person who can associate with your business. However, this is not just time-consuming but also very painstaking.

  1. Word-of-mouth Referrals

Franchisors can ask for referrals from existing franchisees, business networks, friends, and family members. This is the least expensive method but franchisors cannot find a lot candidates as desired.

  1. Running ads

Running ads on Google or Facebook and also on professional social media platforms like LinkedIn and Twitter is a very cost-effective way to reach your prospective franchisees particularly when they are targeted effectively.

  1. Organic Social Media Strategy

If your budget is very tight and you do want to go with paid ads then it is better to go for social media organic reach. This method however requires patience and time. You can use this opportunity to build your brand awareness on the social media portals where your potential franchisees are likely to hang out and get more out of the effort invested.

  1. Cold Emailing

Building a very robust email database of eligible people by collecting information through accurate sources is very significant, but not enough. The content created to send to these audiences must be very compelling. Personalization makes the process very effective for seizing the attention of the audience, increasing the opening rate, and holding their interest enough to make them go through the content.

The key is not to stop here. Always keep in touch with eligible people who show genuine interest in your business, even if they are not ready immediately.

  1. Franchise portals

Listing on Franchise portals is one of the best ways to discover your prospective franchisees because genuinely interested and proficient people flock and sign up into these portals searching for the most suited franchise business opportunity for them. Such portals not only help you find quality candidates but also in good quantity with ease.


DhuMall iHotBiz is one of the top international franchising listing & business opportunities platforms which makes finding the right franchisee a hassle-free and effortless task.

DhuMall is a global marketplace for businesses of all sizes, industries, and nature to shop for various great products, services, business solutions, and opportunities available in more than 200 countries and territories.

The company has the advantage of a valuable and reliable database of top-rated franchise companies seeking to expand globally through master franchising. This comprehensive global franchising listing platform incorporates diverse franchise businesses including Food, Health & Beauty, Education & Training, Computer and Internet, Entertainment, Fitness & Sports, Retail & Retail Services, Jewelry, and many more.

This attracts many competent and zealous people around the world looking for franchising and business opportunities to this platform. The user-friendly platform helps them to filter the listings to refine their search and discover their best-suited opportunities.

You too can list your company on this incredible international franchising listing portal and that too for FREE!

Find Your Right Franchisees


Grow Your Franchising Business Successfully