Why should I give up the total revenue of company-owned units for the royalty revenue of franchises?
Maybe you shouldn't. If you have-or can get-the money to expand quickly through company-owned units, that is probably the way to go. If you don't, you should at least consider franchising. The benefit of franchising is that you collect an initial franchise fee and then royalties on a continual basis for your training and support while deferring the drain on capital for opening additional locations to your franchisees. This allows you to grow your company much faster than you would through company-owned expansion and ensures that dedicated management (a franchisee owner/operator) is in place at each new location you open.
Francorp Malaysia
D 5-5 Megan Avenue 1 189 Jalan Tun Razak 50400 Kuala Lumpur Malaysia
Tel:+603 2171 2172
Fax: +603 2171 2173 info@francorpmalaysia.com