A person who has never owned or run a business should be guided to succeed. It won't be a dream for them anymore. This guide may be provided by a privileged preferred organization. In addition, franchisees may provide branded goods, products or services and financial support.
Here's the guide: The obvious weakness in small business is the lack of management capability. A person with limited managerial skills may be able to acquire a large organization as he is just one of many managers. But no one can cover or "carry" a license manager. Many franchisees try to overcome management deficiencies or inexperience by providing some form of training.
Then it comes to the trademark: An investor who signs a franchise agreement acquires the right to sue a particular brand. This identifies a local unit with a recognized product or service. Travelers recognize the sign of the holiday hotel and the colors of the pizza house. Promotion brings these features and characteristics to the attention of potential consumers.
Most importantly, the product. The licensor may offer franchisees proven products and methods of doing business. The product or service is known and accepted by the public.
Finally, financial support. By joining a franchising company, an individual investor can provide financial support. Business start-up costs are often high and a prospective investor usually has limited resources. In some cases, an association with an approved preference may, through its authority, raise the rating of investors and ratings with local banks.