3)What about a franchise model as a third alternative for geographical expansion?

Franchising is often a good alternative to other options when it comes to geographical

expansion. It has already been tried and tested out by many brands proving its
effectiveness. To avoid having to accept outside capital, the Cebrian brothers actually
considered a growth strategy based on a franchise model. The benefits that this option
would give the company are that it would reduce investment needs and it would allow
for rapid expansion. However, in order to succeed, the model would have to be designed
in a very careful way by ensuring that certain aspects cannot be changed in each
franchise to prevent the El Ganso identity and personality from being diluted or lost.
When comparing this option to a joint venture we find that companies sometime prefer
a joint venture because it usually consists of an agreement that lasts a limited period of
time whereas franchising is usually indefinet. Additionally, partners usually have a
higher self-determination in joint ventures than in franchises.

All in all, we believe aJoint venture to be the go-to model for geographical expansion in
the company El Ganso. However, we do not rule out the possibility of using a franchise
model in a second stage of expansion.