I am a firm believer of the adage “if you are not growing you are dying”.

For business owners, this adage remains true. The focus must always be on sustainable and continued growth.

One vehicle of sustainable growth can be franchising.

But what are the benefits of growth through franchising?

1. Capital

Franchising allows you to scale your business with very minimal capital outlay. Franchising acts as a distribution strategy where you leverage the capital of others to grow in specific markets.

2.  Brand Recognition

Franchising (in theory) leverages time by allowing your concept to grow faster than your competition which is growing organically. The premise being as more markets open your brand exposure and marketing budgets will increase. The increased brand exposure creates competitive advantages within the marketplace.

3. Economies of Scale

As noted, the goal of franchising is to scale and scaling creates buying power. The economies of scale drive profitability for the system and create barriers of entry for new market entrants.

4. People

Franchising enables you to scale without the burden of recruiting, hiring, training, & retaining human capital (outside of the franchisor). The franchisees responsibility is operating the business and hiring falls justly on them.


Ryan Rao is a Principal of Apex Franchise Development Group and is a franchise development expert who has grown multiple franchise based businesses into national and international brands. Franchising has allowed him to help individuals realize their dreams of business ownership, while permitting them to experience the independence, flexibility, and freedom that comes with being a business owner. He also serves as a franchise consultant, and is a personal growth advocate.

Follow or Connect with Ryan on LinkedIn at https://www.linkedin.com/in/ryan-rao/