I'm just going to quickly run through some of the advantages of franchising as a growth model as opposed to traditional expansion methods. Firstly I'll start with capital. The cost to establish a new business unit completely sits with the franchisee. So whether that's a leased premises or a mobile unit, the franchisee pays to establish the new business unit. Secondly, as people, you simply will not get an employee that will work as passionately, with as much commitment or drive as an owner or operator will in growing your brand.
Increased profits. Because of the staffing leverage, headquarters for franchised organizations tend to run in a far more efficient manner. Franchise models are completely scalable. So from that one franchise agreement and set of operating manuals, you can grow your franchise network from two to 20 to 200. It's completely up to you what size you want to get to. And because you're not having to come up with a capital to establish those new business units, it means that you can expand, expand into different territories and regions very quickly. Meaning that the growth for the franchise model can be far faster than traditional expansion.
And finally reduced risk. There is a significantly reduced risk for the franchisor because the franchisee pays to establish the business and because they are ultimately responsible for the running costs of the business and the employees. So as you can see, there are a lot of advantages to franchising if you're wanting to grow your business.