One method a business can use to expand is through franchising (1 mark). This is where a business (the franchisor) gives another business (the franchisee) the right to sell its products and use its brand name in return for a fee or percentage of profits. This allows for rapid expansion into new geographical areas without the franchisor having to fund it all themselves (1 mark).
Businesses can expand in several ways. This is known as growth. \n- **Organic (Internal) Growth:** Expanding from within, for example by opening new branches, developing new products, or entering new markets (e.g., selling online).\n- **Inorganic (External) Growth:** Expanding by joining with other businesses, for example through a merger (two businesses joining to become one) or a takeover/acquisition (one business buying another). \n- **Franchising:** A specific model where a business licenses its brand, products, and operating model to independent owners.
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