The Business Model Navigator, 2nd Edition

Chapter 17

Franchising

All for one and one for all

The pattern

In Franchising, franchisors sell the right to use their business model to franchisees. The system permits a company to expand its business geographically very quickly without having to muster all the resources itself or carry all the risk (HOW?, VALUE?). Both these functions are handled by the franchisees, who act as independent entrepreneurs and therefore bear responsibility for the majority of all transactions. Franchisees benefit by gaining access to a proven business model with all its performance and differentiating features, such as products, trademarks, equipment and ...