Franchisor expansion policies are not as simple as one might think. On the mind of every businessperson is the idea of expansion. We think we will make more money when you expand to a second, third, fourth, etc. unit, store or work truck. So you would think if you are franchisee of a large franchise system that the franchisor would want to help you into that additional outlet as soon as possible or, like some franchisors, much sooner. After all they will make more royalties and have an additional unit or push pin on their map of the country or state. The franchisor's goals are actually more complicated than that. Our goal is your success-profit-happiness. Running an additional unit can create tremendous amount of headaches, which a franchisee may or may not be ready for.
Most franchisors have simplified this process of expanding for their franchisees. It does take time however. For instance:
Training of a manager
Hiring of crew members
Scheduling modification
Finding a good lease
Modifying the location
Installing the equipment
Increasing the percent of new customers
Setting up a labor payment programs
Grand Opening Marketing
Vendor Notification and Logisitics
And this is just the start. Some franchisors want to see the franchisees other unit or original unit busting at the seams first. Some even recommend that you have a minimum of 1.5 times what a typical unit in he franchise system does adding units. If your unit or outlet is failing it makes little sense to dig a deeper hole. Get the problem first, then fix it. In other words, get too much business, then expand. Don't expand into the next unit until you have enough business to support both with the first one. This is one reason franchisors often have different policies for corporate franchisees and individual franchisees.
A large corporation can absorb the expansion costs without taking money out of the profits of the existing units. Not every new franchisee going into franchising today understands this, but it is something you should know and think on.
"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.worldthinktank.net/wttbbs
recurring maid service Wilmette ..While there are few career paths that some would call... Read More
Success is the desire of everyman on the face of... Read More
Until the day I learned to play chess I loved... Read More
Remember the training programs, seminars, and workshops you had to... Read More
Shopping for a franchise is easy if you know what... Read More
Why Alliances FailWhen do you know an alliance is falling... Read More
In your small business debt collection laws will eventually become... Read More
The temporary staffing industry continues to expand, with yearly double-digit... Read More
Cleaning concrete is tough and there is an easy way... Read More
You've heard marketing and advertising gurus quip, "Sell the sizzle,... Read More
As a solo entrepreneur or small business owner, one of... Read More
Writing a business plan for a mobile car wash is... Read More
Office support services can range from basic data entry to... Read More
When working from home, it is usual to find that... Read More
The FTC, Federal Trade Commission, is considering modifying the franchise... Read More
Many businesses offer small business franchise opportunities. There are many... Read More
You've been meaning to tend to the administration part of... Read More
Many people ask how many graphs or charts they should... Read More
It is essential that you fully understand how the fuel... Read More
How do window cleaning franchise businesses start? It is a... Read More
Announcements can be handed out as a business cardAnnouncements can... Read More
As an entrepreneur you can learn a lot by following... Read More
When do you need to get more involved with the... Read More
You can provide affordable health care plans to your employees.... Read More
Thinking of starting a business on line? If so there... Read More
last minute cleaning help Highland Park ..Here are a few tips on how to hand out... Read More
A Brilliant Marketing Idea... sounds great but what is it?... Read More
Cleaning the trailers towed by big trucks is not easy,... Read More
Q: I have outgrown my home office and need to... Read More
What is a Virtual Assistant?? A Virtual Assistant is that... Read More
We have all seen the mobile washing units cruising our... Read More
Which questions do you need to ask to even get... Read More
For the employees, payday is the brightest day; they finally... Read More
What is in an information plan?Before you even meet with... Read More
Technical writing services are employed to explain the details of... Read More
Why? Because they have access to world class public relations... Read More
We are noticing an increase in the length of time... Read More
Congratulations, you are starting a small business! You are taking... Read More
The choice of financing is an important determinant of whether... Read More
I'll be the first to admit that I went a... Read More
On June 8, 2004, the world witnessed what no one... Read More
Think of your business as a living, breathing, organism. It... Read More
Canon City, Colorado is known for it's 6 Prisons; State... Read More
Many mobile car wash operators would like to add de-ionized... Read More
Frankly, given the legal and regulatory requirements involved in attempting... Read More
Last summer the FTC put forth a report and then... Read More
New Franchisors and Entrepreneurs need to watch out as they... Read More
If you have ever had your antique shop or mall... Read More
Small Business, Big Business ? What's the Diff?Well a lot... Read More
Business Process Automation or BPA for short. This was a... Read More
Small Business |