What is one advantage for the franchiser in a franchise operation?

In a franchise operation, an advantage for the franchiser is that they receive a percentage of all franchisee's profits each year. This is a key feature of franchising since it allows the franchiser to benefit financially from the success of each franchisee. The franchiser typically charges an initial franchise fee and ongoing royalties, which are often calculated as a percentage of sales or profits. This arrangement enables the franchiser to grow their income without needing to invest significant capital or take on the direct operational responsibilities of each franchise location.

The other options present scenarios that do not reflect the typical advantages for franchisers; for instance, managing all branches directly or bearing all financial risk contradicts the fundamental nature of franchising, where franchisees take on the operational execution and associated risks of running their individual branches. Operating without capital investment is also misleading, as franchisers typically have invested in brand development, training, support systems, and marketing before selling franchises.