Question

Do you think selling franchises is the best way 'for a business to expand? justify your answer

Answer 1

Explanation:

The primary reason most entrepreneurs turn to franchising is that it allows them to expand without the risk of debt or the cost of equity. First, since the franchisee provides all the capital required to open and operate a unit, it allows companies to grow using the resources of others.

Answer 2

Answer:

Franchising helps mitigate many risks that are involved in expanding a business with company-owned outlets. A franchisor not only requires less capital to expand but also the risk is limited to the capital a franchisor invests in developing the franchise company.