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...safest means achieving growth, and although it does have many advantages, it still requires careful planning to be successful.

Examples of large organisations that use franchising to expand include McDonalds, Tie Rack, and Swinton Insurance. large number and variety of small businesses have used franchising, including Dial-A-Duster, Mobile Phone Centre, and Magic Windshields UK.

Definition

For the purposes of this checklist the term franchising refers to a 'Business Concept Franchise'. This involves: the franchisor, who lends his trademark or trade name and his business system to the franchisee, who pays a royalty and often an initial fee for the right to do business under the franchisor's name and system.

Advantages of franchising your business

Franchising:

provides an affordable means of accelerating expansion

spreads the financial risk of expansion

means that products or goods can be bought in bulk to cover the whole franchise network, thus increasing profit margins and competitiveness.

Disadvantages of franchising your business

Franchising does have some drawbacks, in that:

some control and profit are lost by engaging a third party...

NOTE: All illustrations and photos have been removed from this article.




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