Why is franchising good for growth?
1) Money – franchising allows you to use other people’s money to grow your business whilst also having less involvement with the day-to-day operations. 2) Time – franchising provides a method for growing your business quickly, whether you plan to grow locally, nationally or internationally.
What are the advantages of selling a franchise?
Advantages for selling a franchise and buying a franchise resale
- Brand recognition.
- Track record.
- Cash flow.
- Compliance with agreement.
- Approval of purchaser.
Do you think selling franchises is a better way for a retail business to expand than opening more of its own shops?
(e) Do you think selling franchises is a better way for a retail business to expand than opening more of its own shops? … Yes because franchisees will pay towards the start-up costs which will help reduce the amount the business has to raise.
Is selling franchises a good idea?
If you want to own a business, but don’t have an idea to build from scratch and you have the resources to make it work, a franchise can be a good choice. … Make sure you are prepared to pay the costs associated with the franchise and that the corporate headquarters is likely to provide the support you need.
Is selling franchises the best way to expand?
Access to expansion capital.
Selling franchises is a good way of obtaining expansion capital without the risk, and loss of control, that may come with other sources of capital – such as bank financing or venture capital.