Why do some companies decide to franchise?

Answer 1

Depending on the product, the organization, the idea and its success in the market place are reasons for a company to franchise. McDonald's is the best example. Ray Crok, a salesman saw the wisdom of a five cent hamburger, dime fries and a fifteen cent shake since he was selling shake machines. He bought the original McDonald's and figured franchising would be his way of selling many more shake machines. He didn't plan on selling franchises throughout the country and telling the new owners, exactly what products they would offer, how they would cook, the sanitary requirements of the franchise . These all came to pass and many soon followed. Many companies followed suit like Wendys, KFC, Taco Bell, to name a few.