An interesting article in the Telegraph this morning shows how big name supermarket brand Tesco is experimenting with the franchising model to expand their operations overseas.
The news article reports that the supermarket giant have been trialing a handful of franchised stores in South Korea.
The idea behind the franchise model is that an established company such as Tesco can quickly expand their branding and reach into new territories by sharing the cost of business setup with the franchisee (the individual outlet owner). The franchisee benefits by building their own business backed and supported by a powerful brand, with the franchisor typically receiving a percentage of revenue back as a franchise management fee. More.
