Fairmont Rainmakers

CAPITAL The franchisor’s capital requirements will be lower because the franchisees provide the capital to open each franchised outlet. MOTIVATED AND EFFECTIVE MANAGEMENT The local management of each franchised unit will be highly motivated and very effective. They treat the franchise units as their own and that will usually lead to higher sales and profit levels. FEWER EMPLOYEES The number of employees which a franchisor needs to operate a franchise network is much smaller than they would need to run a network of company owned units. SPEED OF GROWTH The franchise network can grow as fast as the franchisor can develop its infrastructure to recruit, train and support its franchisees. REDUCED INVOLVEMENT IN DAY-TO-DAY OPERATIONS The franchisor will not be involved in the day-to-day operations of each franchised outlet. LIMITED RISKS AND LIABILITY The franchisor will not risk its capital and will not have to sign lease agreements, employment agreements, etc. INCREASING BRAND EQUITY Levereging off th