Why does franchisor sometimes own its own outlets and sometimes not?

Question

why will a franchisor sometimes own an outlet for itself and sometimes simply contract an outlet to a franchisee?

Answer 1

In business, as in many things, it comes down to costs benefits. Franchisers might be big companies that can help get your small business off the ground, but you will sacrifice per franchise profits because of their cut.

If you do it yourself then you get higher per franch. profits, but you might not have the ability to spread quickly enough.

Hence, business often do both. Develop their own in areas they wish to operate in, and also sell the rights to others to develop it elsewhere.

Answer 2

It depends how greedy the owner is.

Answer 3

it believes in its own product and in some cases there is a market opportunity but no franchisee