A-A* (AO3/4) - Franchising at Blockbuster
Business: AQA A Level (2023 Specification), topic 1.2.9
Franchising
Advantages of franchising
- Low-cost way of scaling without needing lots of investment.
- Increased brand awareness.
- Less risk of diseconomies of scale.
Disadvantages of franchising
- Lose control over how franchisees operate.
- Badly run franchises can damage the brand.
Test yourself on A-A* (AO3/4) - Franchising at Blockbuster
Name the 3 main advantages of franchising.
Why did franchisees inhibit Blockbusters' ability to compete with Netflix?