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	In expanding your business, there is always the problem of slow growth, shortage of capital, or finding the right employees. Franchising offers a creative solution to these problems:

	*Money.* Franchising is a modern way of raising capital. After paying the cost of developing a franchise program (often less than the cost of establishing a new outlet), the cost of expansion are borne by franchisees. Franchisees provide the capital to open new locations while you retain control over the business without having to give up equity to investors. *Time.* Franchising permits faster growth. Franchisees tend to grow more quickly than company-owned outlets because franchisees use their own resources. You can have multiple locations opening simultaneously without taking on the burden of debt with each new opening *People.* Studies by Francorp/De Paul University show that franchisees make excellent managers and tend to out perform their counterparts in company-owned outlets. Why? Because they have a vested interest in the business. Franchisees typically invest their own money and operate the franchise themselves, thus, its not just a job. They own it!

	*Other Advantages*

	Franchising combines limited risk with profit potential, as well as short-term growth with long term stability:

	*Lower Risk.* The legal, operational and capital risks of the business are shared with franchisees.

	*Buying Power.* With more locations, your power to negotiate products, supplies and services increases, benefiting both franchisee and company-owned units.

	*Quality Control.* Franchisees are legally required to follow your business and operational system.

	*A Strategy for Better Business Operations.* You are free to focus on the "Big Picture" issues rather than the day-to-day operations.

	*A Solution to Dealer Problems.* You can replace under-performing dealers with hardworking, motivated franchisees.

	*An Exit Strategy.* Franchising improves business growth and profitability potential so your business becomes more saleable.

	Because franchising offers entrepreneurs the benefit of being in the business for themselves, but not by themselves, it has become the most popular business format in recent years.

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