Give Reasons Why a Company Would Expand Through Franchising Rather

question 3

Essay

Give reasons why a company would expand through franchising rather then through the setting up of its own branches.

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Definitions:

Real GDP

The measure of a country's economic output adjusted for price changes (inflation or deflation), providing a more accurate reflection of an economy's size and how it’s growing over time.

GDP Deflator

A measure of the level of prices of all new, domestically produced, final goods and services in an economy, used to convert nominal GDP into real GDP.

Deflation

A decrease in the general price level of goods and services, often indicating reduced consumer demand or excess supply.

Inflation

A general increase in prices and fall in the purchasing value of money over time.