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
taxi to O'Hare Belle Rive .. Lockport Chicago limo O’HareThere are many potential niches for pressure washing companies that... Read More
Send handwritten notes. That applies whether you're a guy or... Read More
To maximum potential profits and dollars in a mobile washing... Read More
Search Engines account for almost 90% of all web traffic!In... Read More
Would it help you as a real estate investor to... Read More
One of the biggest excuses franchisees of home based and... Read More
Here are just a few ways to increase and diversify... Read More
While driving through Pennsylvania farmland, you have probably noticed an... Read More
Success is the desire of everyman on the face of... Read More
A cluttered world of marketing communications diminishes the ordinary. The... Read More
As an entrepreneur you can learn a lot by following... Read More
Here are some important points to take note of if... Read More
Essentially there are 5 tremendously powerful methods to make money... Read More
What types of companies do you want to align yourself... Read More
Opening a carpet cleaning business is a great way to... Read More
Want your small business to flip instead of flop?! Statistically... Read More
It is not surprising that some people may perceive Six... Read More
Many have not experienced a fire up close. One year... Read More
One of the simplest ways to expand your marketing efforts... Read More
Here are some of the questions that you need to... Read More
The way you manage your money is one of the... Read More
Your product is dying. With the same inevitability that we... Read More
Business owners rarely go into business to deal with the... Read More
Security Professionals provide the products and services necessary to create... Read More
My colleague, Jane, recently lamented to me an all too... Read More
ohare limo service Bristol ..If you are a motorcycle detailer and need to expand... Read More
Concrete cleaning can be a lucrative business to start. Here... Read More
People will always stress that having a well researched business... Read More
Essentially there are 5 tremendously powerful methods to make money... Read More
Why should you always maintain a good report with a... Read More
It is an American dream to own a business. But... Read More
Most folks in the pressure washing business are happier to... Read More
Starting your own e-commerce business can be quite the adventure.... Read More
The life cycle of the typical small business is short... Read More
Are you thinking of starting a small pressure washer business... Read More
Most pressure washing companies never look into some of the... Read More
A consultant must remember that the business belongs to the... Read More
Most small business owners are faced with so many responsibilities... Read More
What is a guru?A guru is a teacher. A mentor.... Read More
On June 8, 2004, the world witnessed what no one... Read More
Most small businesses incorporated in 2005 will fail by the... Read More
Q: Is the online world the best place to sell... Read More
Financial Consultants are one of the fastest growing industries today.... Read More
I was floored! I couldn't believe what they were saying!... Read More
Debt collection letters--an overview"Debt collection letter" in the singular may... Read More
The temporary staffing industry continues to expand, with yearly double-digit... Read More
THE PSYCHOLOGY OF PRICINGIn case you hadn't noticed, people can... Read More
Many mobile car wash operators would like to add de-ionized... Read More
KEEPING INTEREST HIGH: Supervision is key to the success of... Read More
How is your pipeline structured?I assume most of you have... Read More
Small Business |