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Question
How is franchising a better option for external expansion in case of start-ups?
Solution
- Franchising changed the working of the startups because already the product carriers a name in the market already which is the most difficult part of business to establish.
- Startups take up training to understand the product and franchisors make franchises fully conversant with the product/services that they have to offer.
- The start-ups can grow fast without having to increase labour, operating costs and blocking running expenses because normally buyers straight walk up to them.
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