In exchange, the other party typically pays some price as well as agreeing to take on some or all of the responsibility to train and support new franchisees in their area.
[2] In general, a franchise enables a product to be dispersed across more outlets and regions, solving many geographic concerns raised by large market companies.
The franchisor gives up the meticulous management of non-franchisor entities, but is still able to contain significant control over the look, feel, and branding of geographically dispersed individual businesses.
Combined, these two factors translate into almost instant penetration into the market and a competitive advantage, both of which increase system growth rates.
By allowing the franchisor to specialize in recruiting, screening and training of subfranchisors, who then develop their area in a similar way, the overall growth rate of chains increases.