Zak and Kellie own a successful food catering business called Meals at Work in Lisburn. Zak and Kellie want to grow the business and are thinking about franchising. (g) Evaluate franchising for this business.

Franchising would bring about both advantages and disadvantages for Zak and Kellie's catering business. As they are currently a relatively small business with only 8 employees, franchising has the potential for expansion opportunities for the business, allowing them to grow relatively quickly and can create economies of scale. Not only will the business grow in size, but Kellie and Zak will receive royalty payments from the Franchisee while still retaining full management control of the franchisee. However, there is risk that a Franchisee could damage the corporate image of the Franchisor if bad decisions or made or it is not run to the usual standards that the Franchisor expects. Therefore, the recruitment process needs to be thorough. Although Kellie and Zak have management control, they will not be in control of the day to day running at the Franchisee. In conclusion, as Kellie and Zak do wish to grow the business, i would recommend Franchising, however i would be cautious during the recruitment process to ensure the appropriate candidates are selected.