Most businesses that choose to franchise do so because they face at least one if not all of these three limitations: –
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Most businesses that choose to franchise do so because they face at least one if not all of these three limitations: –
Time –
They need to expand more rapidly than traditional methods would normally allow. Franchise expansion generally allows for a quicker, faster penetration of your market.
Capital –
Through the use of ‘other peoples’ money you can increase the number of businesses. The risk associated with funding the new businesses generally fall to the Franchisee, thus allowing the grop to expand quicker that if you needed to fund each new business yourself.
People –
Getting and keeping great staff is hard. By franchising you are dealing with the Franchisee and not the employees, that is their responsibility. Have Store Managers in place is just nit that same. The old saying goes to have ‘skin in the game’ means that there will be better controllables in place and generally an increase of 10-20% in sales over stores that are managed by staff.
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