Franchising offers benefits for both seller and buyer. For franchisors, the first benefit is the chance to use other people's money to further the expansion of the brand earlier than they might either on their own or via investors or lenders. The franchise fee and continuing royalties they collect enable franchisors to create their brand without ever affecting the control of outsiders or the pressure of repaying lenders.
The fees and royalties are accustomed to fund operations at corporate headquarters, train and support franchisees, market and advertise the brand, better the standard of products or services, and put up the brand within the marketplace. For franchisees, advantages are the better chance of success than in a sole proprietorship; lesser time to opening; initial training and continuing support and more.