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
premium house cleaning Wilmette ..For really tough boat hull cleaning you will need to... Read More
When small businesses fail, the wreckage is often assigned to... Read More
The Federal Trade Commission is upgrading the franchise law and... Read More
What's your job profitability? I meet with business owners every... Read More
If you run a mobile car wash, mobile fleet washing... Read More
When should you leverage the relationship?Leveraging sometimes brings a negative... Read More
Hogwash!That's what I say to people who tell me that... Read More
Outsourcing is the strategic use of outside resources to perform... Read More
Whether your target audience is in your neighborhood or across... Read More
You're a small business owner with a hot new product... Read More
Announcements can be handed out as a business cardAnnouncements can... Read More
Before you want to build your business, you need to... Read More
Every company has a value proposition. That is a statement... Read More
Why Alliances FailWhen do you know an alliance is falling... Read More
No matter type of business you operate you've got to... Read More
Has this ever happened to you... 'John, you have a... Read More
Incorporation in Nevada has become an attractive option for savvy... Read More
Once you've decided to incorporate your small business the next... Read More
I started working with another new client last week. He... Read More
Motivational author and speaker Jim Rohn says that for a... Read More
A cluttered world of marketing communications diminishes the ordinary. The... Read More
While I was hard at work last week, an everyday... Read More
The FTC Franchise Rule maybe changed, as the Federal trade... Read More
There are many factors to be considered when you are... Read More
Let's face it, we all tend to get stuck in... Read More
personalized cleaning services Deerfield ..How far away is the person you need to meet?We... Read More
As you may already know, asphalt paved parking lots do... Read More
"If at first you don't succeed, then skydiving definitely isn't... Read More
While there are few career paths that some would call... Read More
Passion. Passion alone can make your business successful. As an... Read More
A common hazard faced by new entrepreneurs is a lack... Read More
Before you want to build your business, you need to... Read More
Franchising Directory Sites-Paid Advertising, Lead Generation for FranchisingFranchising Directory Sites... Read More
Q: I'm curious. What is the dumbest business question you've... Read More
As a company grows, the owner's role begins to change.... Read More
Here are some useful tips on what to consider before... Read More
Most small businesses will not even try to advertise on... Read More
To wash an airplane there are many items you will... Read More
Motivational author and speaker Jim Rohn says that for a... Read More
Have you been searching for the perfect home-based business? I... Read More
A cluttered world of marketing communications diminishes the ordinary. The... Read More
I agree that knowledge should be free, but the next... Read More
Self-cleaning glass has been talked about a lot, with such... Read More
If you are just starting your business, or if you... Read More
Looking for a place to add a Quick Lube away... Read More
Where would a business be without a business plan? A... Read More
Every business regardless of size needs a "Business Image Manual"... Read More
More sales and more profit. Isn't that what you want... Read More
The life cycle of the typical small business is short... Read More
The restaurant industry in the United States employs an estimated... Read More
Small Business |