The Business Organisation

Benefits and disadvantages of expansion through franchising

- Business growth is paid for by the franchisee paying fees to use the name and logo of the exisiting firm. The franchise fee can be an important source of finance for the business

- A franchise may not keep to their legal agreement (e.g. they could sell products that are not part of the contract). This could damage the brand image of the franchise

- Franchises are likely to have a high


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