SR
ENExample situation: Franchise or Our Own Stores
Question
“We have three successful bakery-café stores and want to expand to five more cities. We can open our own stores at around 150,000 euros per location or sell franchises. Which is the better option?”
What to question
Is our model written down and simple enough for someone else to run without us? How much capital can we set aside without endangering the existing stores? What do we lose if a franchisee does not meet standards?
How the depth changes
Focused → broader → deepest
Four perspectives quickly separate fast growth from controlled growth: how much capital and management attention each option requires, how much our…
Five additional perspectives question the assumption that a franchise is cheaper, model a downside where several franchisees fail to meet standards,…
Six additional perspectives test cash flow and payback per location, a hybrid model (a few of our own and the rest through franchising), legal…
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