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
house refresh service Morton Grove ..It is an American dream to own a business. But... Read More
It is most fascinating to study how entrepreneurs spot opportunity... Read More
Franchising is the fastest way to build small businesses, provide... Read More
Many small companies work very hard to get new accounts.... Read More
There's no question that hard work and a little luck... Read More
I have to admit, I was curious. When I saw... Read More
The goals of businesses have undergone much evolution from the... Read More
Everyone wants to succeed in life. Most people want to... Read More
By outsourcing to skilled professionals you'll be able to grow... Read More
We all know that a building has to have a... Read More
I believe the number one reason why a business will... Read More
You see it often in large shopping complexes. Customers seem... Read More
Often smart entrepreneurs look for out of the way businesses,... Read More
Rule 15C211Under SEC Rule 15C211, a U.S. securities broker or... Read More
What makes a business relationship?What really makes a business relationship?... Read More
On Monday the Department of Corporations in California revoked franchise... Read More
In today's fast paced marketplace it is easy to neglect... Read More
How do we keep track of our business deals?If you... Read More
Whether it has been thrust upon you by external market... Read More
Grow your Professional Organizer business by branching out into related... Read More
How careful are you with the data you collect from... Read More
During the California Recall Election, I was very interested. Without... Read More
Discover How Specialized Cost Containment Creates A New Win-Win Position... Read More
Many experienced auto detailing professionals who have started out using... Read More
Now that winter has passed, the annual ritual of spring... Read More
cleaning service near Mundelein ..In the world today, many people are further in debt... Read More
Why should you do informative talks to smaller groups?Informative talks... Read More
Franchising has made the world look really small. The well... Read More
If you are thinking of turning your current into a... Read More
Tap these treasures of ideas. The best money you can... Read More
How a donation is different from a sponsorship and what... Read More
One major issue not being addressed right now in the... Read More
Last week's question from Anthony R. on how to choose... Read More
Some marine biologists feel that the concentration of dead marine... Read More
Rule 15C211Under SEC Rule 15C211, a U.S. securities broker or... Read More
-- Building Credibility Through Success Stories --Successful solo entrepreneurs spend... Read More
(Although this article is geared towards small business owners, the... Read More
I recently met with a very successful magazine publisher who... Read More
As small business managers, we juggle limited resources in a... Read More
Senior citizens are generally not a large marketing segment for... Read More
Why should you describe your business to others in 5... Read More
If you are just starting your business, or if you... Read More
Early in my career, I wrote an article for a... Read More
The way you manage your money is one of the... Read More
Auto Detailing: Maintaining A Commercial Carpet ExtractorYou should drain your... Read More
When it comes to cost, how much can you afford... Read More
One of the best ways to make money in the... Read More
A corporate shell could be liken to a house that... Read More
1. Resolve to build a consistent network system.Since referrals are... Read More
Cash is the lifeblood of any business. As humans need... Read More
Small Business |