The Distinctions Between Top Down and Bottom Up Franchise

The bottom up franchise is an outgrowth of successful independent firms that expanded through franchising. It's a tried-and-true business strategy. These businesses began as sole proprietorships and grew via franchising their brand, products, and services to others. These are usually the most well-known figures in their fields.

A top-down business, on the other hand, is the polar opposite. This franchise is started by specialists who research franchising trends and capitalize on them by creating their own brand. However, unlike well-established franchises, their newly generated franchise faces larger risks because they are never subjected to much trial and error. Finally, there is no business model for top-down franchises.

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