Franchising 5 September 2017

What are the advantages and disadvantages of franchising your business?

Franchising can allow your business to expand quicker
Franchising can allow your business to expand quicker
In the first of a three-part series, corporate and commercial solicitor at London law firm IBB Solicitors, Sho Matsumiya, takes a closer look at the main advantages and disadvantages in franchising your business.

Most company owners at some point think about expanding and one of the ways to do so is franchising your business. Most successful franchises share the following similar, common business elements.

(1) A successful pilot business

The original business was successful on its own.

(2) Consistency, even when scaled up

In a burger chain franchise, for example, at the original store the burgers were produced on site, but as the business expanded to accommodate additional franchisees, production of the burgers will (for economic and other reasons) be moved offsite so that they can be delivered to franchisees who will all receive burgers of the same quality, and the product will therefore be consistent.

(3) Transferability

The business can be replicated in various places in the country or around the world with minimal adjustments to the original basic formula.

(4) Learnability


 
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