Franchising is a continuing relationship in which the franchisor provides a licensed privilege to the franchisee to do business, and offers assistance in organising, training, merchandising, marketing, and managing in return for a consideration. Franchising is a form of business by which the owner (franchisor) of a product, service, or method obtains distribution through affiliated dealers (franchisees). The service being marketed is identified by the franchisor's brand name, and the holder of the privilege (franchisee) is often given exclusive access to a defined geographical area.

There are countless benefits to becoming a Franchisee, which is why Franchising is one of the fastest-growing sectors of the Australian economy. Here is a short list of advantages of Franchising over stand-alone forms of small business:

1. The Franchisor provides detailed training.
2. The Franchisee has the incentive of running their own business with the additional benefit of continuing assistance from the Franchisor.
3. The Franchisee benefits from operating under the name and reputation (brand image) of the Franchisor, which is already well established in the mind and eye of the public.
4. The Franchisee will usually need less capital than they would if they were setting up a business independently because the Franchisor, through their pilot operations and buying power, will have eliminated unnecessary expense.
5. The Franchisor provides the advice and/or help in identifying suitable operating territories for the Franchisee.
6. The Franchisor trains the Franchisee (and very often, the Franchisee's staff as well) in all areas of the business such as; service skills, troubleshooting, accounting, business controls, marketing and promotion.
7. The Franchisor may negotiate better rates of finance, or more favourable conditions, for Franchisees with financial institutions.
8. The Franchisee receives the benefit on a state-wide scale of the Franchisors advertising and promotional activities at a lower cost than if they were to attempt such marketing themselves.
9. The Franchisee taps into the bulk purchasing power and negotiating capacity made available by the Franchisor by reason of the size of the franchised network.
10. The Franchisee can call on the specialised and highly-skilled knowledge and experience of the Franchisor's head office organisation, while remaining self-employed in their business.
11. The support and benefits provided by a Franchise system greatly reduce a Franchisee's business risks.
12. The Franchisee has the services of the field operational staff of the Franchisor who are there to assist with any problems which may arise from time to time in the course of business.
13. The Franchisee has access to use of the Franchisor's patents, trade marks, copyrights, trade secrets, and any secret processes or formulae.
14. The Franchisee has the benefit of the Franchisor's continuous research and development programs, which are designed to improve the business and keep it up-to-date and competitive.
15. The Franchisor provides a knowledge base developed from their own experience, as well as that of all the Franchisees in the system, which would otherwise be impossible for a non-franchised business to access.
16. Defined territories of operation within the Franchise can help protect the Franchisee from competition.
17. A Franchisee can always speak to their Franchisor or a fellow Franchisee to discuss their business challenges or problems - something a non-franchised business can almost never do.