Franchising is useful for both the franchisors as well as the franchisee in different aspects. Though the companies make profits by their own, most of them tend to provide the franchises in order to penetrate more into the market. In most cases, the companies cannot operate in the remote locations and then it moves with the franchise licenses. Some of the reasons the franchisors opt for franchising are to. Expand the business Penetrate into the market . Maximize profits though franchise and royalty fee - Encourage the small businesses - Reduces the building and infrastructure expenses