Why do fast food companies usually franchise their restaurants instead of operating the locations themselves?

Question

Why do fast food companies usually franchise their restaurants instead of operating the locations themselves?

In: 101

Answer 1

My buddy owns 3 franchises of Subway. I’d say he works 80 hour weeks, and has done so for years. He gets calls any any hour of the day or night about the business. He’s constantly on his phone watching his security cams making sure his places are running. He’s at each of his restaurants typically for a few hours each day and does all the financials and management.

Only an owner with real skin in the game would do that.