Advantages

Franchising enables your company to expand using capital raised through your franchises and, therefore, your own financial commitment is reduced.
You do not have to rely on your business making enough money for you to open new branches.
Franchisees investing in their businesses are more likely to be more motivated than conventional managers.
Less staff are required to run the head office and sales team than a conventional business.
Less exposure to the problems associated with conventional business, such as recruiting and retaining staff and the security of stock and cash.
International expansion and the benefits of opening up in an foreign country through a master franchise has enormous potential.

Disadvantages

You do not own the branches, thus not earning the same as a company-owned chain.
You have less direct control over the network. You will however be able to terminate a contract with a franchisee who does not follow the system.
You pass on the rights to use the trademarks and business system to outsiders and you need to be sure that you have some recourse if they are dismissed.
You need to select you franchisees with great care to ensure your network develops to its full potential and that franchisees are capable and prepared to conduct their business according to your system.
Your rate of growth will depend on your ability to attract new franchisees who are capable and have the right resources.
Franchising is not a system to launch into to raise finance immediately. Your company should have taken the preparatory steps and have proved and disproved a pilot operation, operated at arms length form your own business over a sufficient period of time.
You have the moral responsibility to ensure that your franchisees, who have invested their life savings in the business, are successful.