Franchise Growth-Value Matrix

The Franchise Growth-Value Matrix is a strategic tool used to evaluate and categorize franchises based on their growth potential and current value. It helps business owners and investors identify which franchises are worth investing in, expanding, or divesting.

At a very high level, the Franchise Growth-Value Matrix is used in the context of business, marketing, finance.

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What is the Franchise Growth-Value Matrix?

A visual explanation is shown in the image above. The Franchise Growth-Value Matrix can be described as a matrix with the following quadrants:

  1. High Growth, Low Value: Franchises with significant growth potential but currently low value, e.g., a new tech-based franchise.
  2. High Growth, High Value: Franchises with both high growth potential and high current value, e.g., a leading fast-food chain.
  3. Low Growth, Low Value: Franchises with low growth potential and low current value, e.g., a struggling retail franchise.
  4. Low Growth, High Value: Franchises with high current value but limited growth potential, e.g., a well-established local diner.

What is the purpose of the Franchise Growth-Value Matrix?

The Franchise Growth-Value Matrix is a 2x2 matrix that helps business owners and investors evaluate franchises based on two key dimensions: growth potential and current value. The matrix is divided into four quadrants, each representing a different combination of growth and value. This tool is particularly useful for making strategic decisions about where to allocate resources, which franchises to expand, and which ones to divest or improve.

Top-Left Quadrant: High Growth, Low Value
This quadrant includes franchises that have significant growth potential but currently offer low value. These franchises are often in the early stages of development and require investment to realize their potential.

Top-Right Quadrant: High Growth, High Value
This quadrant represents the ideal franchises that offer both high growth potential and high current value. These franchises are often market leaders and are prime candidates for further investment and expansion.

Bottom-Left Quadrant: Low Growth, Low Value
This quadrant includes franchises that offer low growth potential and low current value. These franchises may be struggling and could be candidates for divestment or significant restructuring.

Bottom-Right Quadrant: Low Growth, High Value
This quadrant includes franchises that offer high current value but have limited growth potential. These franchises are often mature and stable, providing steady returns but limited opportunities for expansion.

By categorizing franchises into these four quadrants, business owners and investors can make more informed decisions about where to focus their efforts and resources.


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What templates are related to Franchise Growth-Value Matrix?

The following templates can also be categorized as business, marketing, finance and are therefore related to Franchise Growth-Value Matrix: Product-Market Matrix, 4 Ps Marketing Mix Matrix, AI Capability-Value Proposition Alignment Matrix, AI Innovation-Value Alignment Matrix, AI Maturity Matrix, AI-Value Proposition Alignment Matrix, AI-Value Proposition Matrix, AIDA Marketing Matrix. You can browse them using the menu above.

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