 | FRANCHISING IS AN EXCELLENT EXPANSION METHOD
Franchising offers a number of significant benefits and solutions in terms of expansion capital, local unit management and time to market.
1. Expansion Capital – Franchisees furnish most of the capital required for the franchisor’s expansion - equity, business loans - for the development of real estate, leasehold improvements, FF & E (furniture, fixtures & equipment), inventory, pre-opening and ongoing working capital.
2. Local Unit Management – Franchising provides the franchisor with the motivated and effective local management needed to ensure a professionally operated business. Unlike a typical employed manager, the franchisee makes a financial and personal investment in the business and therefore, remains highly motivated.
3. Time to Market – Because franchisee’s provide the expansion capital and local ... |
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