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Why Are Business Franchise Models So Effective?

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Executive Summary

Business franchise models are amongst one of the most successful business structures in use today, spanning the entire globe and a range of industries. From large multinational franchising outfits through to the smallest franchisor, business franchise opportunities are a great way of generating profits from running a business without taking the same risks usually associated with new business startup. Benefiting from a tried and tested business model, franchising agreements are usually better regarded by banks and lending institutions and present less of a risk to the entrepreneur looking to start-up in business. But why exactly are franchises such a popular way of doing business? Business franchising agreements are so effective because they generate value for both parties.

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