The most obvious advantage of franchising for an entrepreneur is that it allows the venture to expand quickly using little capital. 

1. It involves low capital investment by the franchisor as the capital used to expand the network comes from franchisees. 

2. By using the franchisees’ capital, the franchisor is able to establish a large number of outlets in a short period of time. 

3. A franchisor can expand a business nationally and even internationally by authorizing and selling franchises in selected locations. 

4. Quick expansion can be achieved without incurring the overheads and costs associated with opening company-owned outlets. 

5. Operating a franchised business requires fewer employees, this allows the franchisor to maintain low payroll and minimizes personnel issues and problems. This brings benefit to both the franchisor and franchisee as it helps build consumer recognition quickly and establish the franchise. 

Example: Just think of the capital needed by DeLuca to build 8,300 Subway sandwich shops! The value of the franchise depends on the track record of the franchisor and on the services offered to the entrepreneur or franchisee. Subway’s low franchise fee has enhanced expansion opportunities, as more people can afford it.