Direct Expansion

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This approach involves opening new stores managed directly by the company. It is a strategy that requires a significant capital investment , but allows you to maintain total control over management and service quality. It is like building a floor above your house: you add value directly to your assets.

– Franchising : Franchising, on the other hand, is a strategy in which the parent company grants the right to use its brand and know-how to independent entrepreneurs, called Franchisees . This method allows for faster expansion, since the franchisees are the ones who invest the capital needed to open advertising data new stores. It is like breaking down a wall and expanding horizontally, using external resources to grow. Obviously, this involves knowing how to choose the right franchisee, avoiding the so-called “franchising tourists”.

These expansion strategies are not two different alternatives, but complementary . Opening new direct points can strengthen the credibility of franchising and vice versa. A company that believes in its project can use direct expansion to demonstrate the validity of the model, incentivizing other entrepreneurs to join as affiliates.