Question

Why do people buy franchise instead of expanding by opening more stores​

Answer 1

Franchising is a good way to obtain expansion, you can grow the number of locations with tapping much of your own money.

Answer 2

People buy franchise because franchising helps franchisors gain areas where a market may be for their company, but the problem is they might not be familiar with. Franchising allows for the business to grow without spreading its top level human materials across too thin unlike stores. Franchisees can pay outlets in your chain of the system, you can large the number of locations without having to tap of your capital or needing to ask financing from banks.