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

Creating a brand that is franchisable enough to have people pay YOU to give them your system, means you are buying “managers” who have a very real financial investment into the success of your brand. Their success is your success, and they can’t quit like an employee, so they will do more to keep the business successful.