Expanding Your Business Through Franchising

How Franchising Expands Your Business

Franchising is a system for the consistent, sustainable replication of a company’s brand. It is based on a contractual relationship between the franchisor and local franchisees ​who are responsible for independently managing their businesses to achieve the brand standards established by the franchisor. Successful franchisors provide their franchisees with proven business systems necessary for them to grow and manage their businesses.

Franchising is about the relationships that the franchisor establishes with its franchisees. In a franchise, the franchisor licenses its trade name (its brand) and its franchising operating methods (its system of doing business) to its franchisees. The franchisee independently operates and manages their business according to the terms of ​their contract (the ​Franchise Agreement) with the franchisor. 

Role of Good franchise Leadership

Great franchisors provide their franchisees with the leadership and support they require, and then enforce the delivery of the system's products and services by its franchisees to its brand guidelines. In exchange for their use of the franchisor’s brand and systems, the franchisee pays the franchisor an initial fee (the franchise fee) and a continuing fee (the royalty), and participates and contributes to the franchise system’s marketing programs (the brand fund) and other programs established by the franchisor.

Understanding competitive forces, market dynamics and consumer demand all play a role in how a company positions itself and chooses franchising as its growth strategy. In developing your franchise system, MSA will make certain that your franchise offering is attractive to each of the potential classes of franchisee you plan to target. We focus on the development of new franchisors so that, when properly managed, their franchise program is sustainable and can achieve the desired financial results for both the franchisor and their franchisees.