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

When some of these companies were first founded, they didn’t have enough money to open 100 restaurants. Franchising allowed them to open 100 places by using other people’s money. McDonald’s is rich now, but it wasn’t always super rich.