Franchisee

Organic growth does not mean that every task must be done by the business’s own employees, or that it must use only its own money. It can involve franchisees, outsourced production and borrowed finance. The distinction is whether the business expands its activities or grows by combining with another business.

A franchise allows a franchisee to operate using a franchisor’s name, products and business system. Food businesses such as Subway and Domino’s use franchise arrangements. The franchisee runs their own operation under the agreed system rather than inventing an entirely new brand.