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Raising Entrepreneurial Capital, 2nd Edition by Suzanne M. Erickson, John B. Vinturella

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9

Franchising

John Vinturella and Suzanne Erickson

Franchising provides a way for franchisors to grow their businesses more quickly than they could on their own. For franchisees, it reduces the probability of failure.

Substantial personal resources are required to pay the franchise fee and all the other costs associated with start-up. The franchisor may or may not provide assistance with financing. Franchise models, investment, and requirements vary widely, so it is imperative that the potential franchisee conduct thorough due diligence before proceeding.

Chapter Goals

In this chapter, you will learn:

• The most common forms of franchise arrangements.

• The costs and benefits of franchising versus more traditional entrepreneurship.

• How to conduct ...

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