Haug, Andrew Stephen (2017) Growth Strategies in the Australian Health and Fitness Industry: Franchised vs Company-Owned Outlets. Other Degree thesis, Victoria University.

Abstract

Businesses seeking to expand their operations must evaluate what organisational strategy might be the most beneficial in driving growth, while satisfying the organisation's particular circumstances. This study examines growth modes and the different choices for firms in the Australian health and fitness industry. This might mean growth through company-owned entities or outlets, or external growth through franchised outlets. Company-owned growth refers to a firm expanding primarily through the maintenance of its ownership or equity in all or parts of legal entities of the expanding business. This form of organisational growth is considered an attractive method of expansion as it guarantees greater levels of control without company culture and management style being compromised. However, the use of franchising or the setting up of franchised outlets is becoming an increasingly popular alternative organisational form. Franchising allows for rapid expansion while addressing any of the resource scarcity issues that are often associated with young expanding firms.

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