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Franchising - Coggle Diagram

- - - - A classic growth strategy for a proven business format
        
        Enables much quicker geographical growth for a relavely low investment
        
        Sll have the opon to open locaons that are operated by the Franchisor
        
        Capital investment by franchisees is an important source of growth finance
      - Drawbacks
        
        Access to capital. One of the biggest barriers to expansion for small business is the money it costs to expand. ...
        
        Efficient growth. Opening the first unit of a business is costly and time consuming. ...
        
        Minimal employee supervision. ...
        
        Increased brand awareness.
- - - - The franchisee is given support by the franchisor. This includes marketing and staff training. So starting a business in this way requires less expertise and is less lonely!
      - The franchisee may benefit from national advertising and being part of a well-known organisation with an established name, format and product
      - Less investment is required at the start-up stage since the franchise business idea has already been developed
      - A franchise allows people to start and run their own business with less risk. The chance of failure among new franchises is lower as their product is a proven success and has a secure place in the market
      - Drawbacks
        
        Cost to buy franchise – can be very expensive (hundreds of thousands of pounds).
        
        ● Have to pay a percentage of your revenue to the business you have bought the franchiser from.
        
        ● Have to follow the franchise model, so less flexible. You would probably be told what prices to set, what
        
        adversing to use and what type of staff to emp