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  • Writer's pictureJerry Silva

YOUR OWN CHAIN OR FRANCHISE NETWORK- DIFFERENCES

If you already know that you want to expand your business, building new branches, you can make it happen using your own capital, bank loans, investors' capital or using the franchise system. Please find below other differences.


CAPITAL

OWN CHAIN: You cover all the opening costs of each new branch with your own capital, bank credit or investors

FRANCHISE NETWORK: The total cost of the investment is covered by the franchisees. You can open as many branches as you want without investing 1 peso.


EMPLOYEES

OWN CHAIN: You hire, train and manage new employees

FRANCHISE NETWORK: The new employees are hired by the franchisees and are responsible for the workers.


MANAGEMENT

C.P: You hire new managers, and managers are just managers, they can always find a new job

R d F: Your franchisees are your business partners. They invest a lot of money. They mind their own business. They will never look for a new job...


CONTRACTS

C.P.: You have to sign, under your responsibility, many new contracts, sometimes long-term.

R d F: Franchisees are signing contracts in their own name and responsibility


RISK

C.P.: Each new branch: a new business risk for you

R d F: Each franchisee takes a risk for the branch and all operations


CONTROL

C P: You are responsible for controlling all the details in each of your branches

R d F: The difficulty of detailed day-to-day control lies with the franchisee


DEVELOPMENT SPEED

C Q: If you are responsible for opening each new branch and all the related work, it is difficult to expand quickly.

R d F: All the work related to the opening of new branches is done by your franchisees. You can very quickly open a large chain of your branches.


YOUR PRIVATE TIME

OWN CHAIN: Each new branch will take a lot of your time

FRANCHISE NETWORK: If you equip your franchisees with a perfectly prepared operations manual, procedures and other instructions, then you can own 100 branches and have plenty of time for your family, hobbies

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