I f your working capital is growing and there are options to expand your business. Here are some alternatives if you don't want to take the franchise route.
- Expand your company network. Adding company-owned inits is capital intensive, but this allows you to keeping the quality of products and services of your brand consistent.
- Branchising. A modified way of managing stores, "branchising" happens when a company sells its units to investors, usually to employees, to generate capital. The new owners run the business, but the company receives service fees or royalties depending on the arrangement.
- Distributorship, dealership and licensing. Generally referring to the same method, these three systems allow individuals or companies to act as re-sellers of the product. The licensor retains control of the quality of the goods, as it continues to manufacture them.
- Area of development. Awarding business rights to a single entity, a company or an individual to establish a number of outlets in a region or country. This is a form of joint ventures or master franchising.
