As a franchisor I am always asked by new and existing franchisees about future expansion. I find this to be a most wonderful question because I admire the strength of today's entrepreneur. With all and over regulation we still see hard chargers willing to battle the Tsunami of laws, rules and regulations as the debris rushes ashore. Indeed, with the Hurricane of lawyers presently in practice and Earthquake stampeding new attorneys getting out of law school, it is amazing the new warriors of free enterprise still press. Yes, in fact the modern entrepreneur has more floating and flying debris then ever before in our nations history. The of course want to shoot all the lawyers and regulators who have never made an honest dollar in their entire lives, yet no one has that much ammo and it is time consuming to run down all the much mold and slime.
As a franchisor to protect the integrity of our franchise system we had devised a fair plan for our expanding team members, which ought to looked at whether you are a franchisor or franchisee. Such policies keep the lawyers and the sneaky little petty bureaucrats behind the walls of the castle sweating it out inside their Trojan horse like the viruses and contaminators of free enterprise that they are.
Here is the policy, which is an excerpt of our Confidential Operations Manual of one of our brands. You should follow the thought process here to learn from our experiences:
"Buying of New Exclusive Territory for Your Franchise"
"Now, before we sell a territory containing a city that is next to the one you are in to a new prospective franchisee, we would obviously ask you if you wanted to be the person to buy that exclusive territory. If you did, and you had the necessary financing available and were in good standing in our system, then we would sell it to you instead of the newcomer."
"The reason is it is easier to sell it to you rather then to train a brand new person and start from scratch. Obviously if you are in business with us as a franchisee and you are doing well we want you to continue to do well. But we want you to continue to do well in your exclusive new territory as well as your present territory. So all of those factors have to be considered. Also, do you have the staff or do you have a truck manager to run the additional unit in the next territory? We want market domination. But to have market domination you need market penetration. To have market penetration you need market share. But to have market share, you have to be better than your competition. You have to be able to service more people faster, better and more efficiently. But to do that you may need an additional service unit and you may need newly trained managers".
"All these factors are taken into consideration during our evaluation as to whether or not we will sell you any additional territory. But of course we are in it to win it all the way. We support our team and we always try to hire from within first. So we would rather help our own team expand their business rather then bring on a newcomer outside of the team and risk having someone that was not as efficient as you and to lose temporary market share during the training period."
"So if your business is operating up to standards, we definitely want you to buy the territory next door and then hopefully to buy all the territories surrounding your city and have a very large, exclusive territory. That would be best for the team, if we had one franchisee for every ten cities. Of course, to expand to ten cities will cost you more money and for us to grant those to you, you would have to be doing well in all the previous cities, one through nine."
I hope you have enjoyed both my opinions and perceptions of the reality of today's market place and the tid bit of wisdom in expansion policies of home based and mobile franchise businesses. Most franchisors should agree with this policy out of simply pure fundamental principles Most franchisees should understand the need for such policies. So when a new prospective franchisee or existing franchisee of my system asks me about such thing, this is where I derive the thoughts, which make up my answers. You might also wish to think about this, because they do not teach it in school and you might get sued if you don't.
"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.worldthinktank.net/wttbbs
taxi from O'Hare Bismarck .. Lockport Chicago limo O’HareWhile there are few career paths that some would call... Read More
It's the dream of every person who starts a business... Read More
Have you ever heard the phrase, 'PREPONDERANCE OF PROOF'?I recently... Read More
Opening a carpet cleaning business is a great way to... Read More
A cluttered world of marketing communications diminishes the ordinary. The... Read More
As you may already know, asphalt paved parking lots do... Read More
As a practitioner and student of Small Business Marketing, I... Read More
Don't you find that there are so many decisions you... Read More
Consistency is a huge word when operating your business. I... Read More
When should you create a foundation in order to solidify... Read More
It has been discussed allowing Franchising companies to electronically disclose... Read More
How to do itPeople skim through newspapers and magazines and... Read More
No, I'm not talking about gambling or dairy cows ?... Read More
As stability emerges in the Middle East there will be... Read More
As a Boat Detailing Specialist, you may want to offer... Read More
Do you know what your genius work is? It's the... Read More
Franchising Corporations need to maintain an iron fist when it... Read More
If you really want to earn more money with your... Read More
One of the best marketing strategies a business or organization... Read More
Mobile detailers will find themselves with lots of competition even... Read More
Do you spend every waking minute in your business? Do... Read More
The employer / employee relations environment has been constantly evolving... Read More
As a teenager I worked for my father's small business.... Read More
Small Business, Big Business ? What's the Diff?Well a lot... Read More
Tap these treasures of ideas. The best money you can... Read More
Granger Lincoln Stretch limo rentals ..Starting your own e-commerce business can be quite the adventure.... Read More
Frankly, given the legal and regulatory requirements involved in attempting... Read More
What are the 5 best ways to gain new contacts?There... Read More
There is a rather famous true story called "Acres of... Read More
Where would a business be without a business plan? A... Read More
In franchising an individual desirous of their own business will... Read More
Treat your business as a serious, full-time business and be... Read More
How much is your time really worth? Is it worth... Read More
Image of your franchise automotive outlet is so important. Some... Read More
We were more than excited. Our women's doubles tennis team... Read More
In a quest for customers and to keep those customers,... Read More
You can provide affordable health care plans to your employees.... Read More
Are you thinking of starting a small pressure washer business... Read More
The home-based business market, sometimes called the SOHO (small-office/home-office) market,... Read More
Q: A friend told me that as a woman of... Read More
CONSIDERATIONS FOR YOUR INTERN: Specify the number of hours the... Read More
Most doctors never distinguish the difference between customers and patients.... Read More
The success of your business is critically dependent on how... Read More
The temporary staffing industry continues to expand, with yearly double-digit... Read More
As a practitioner and student of Small Business Marketing, I... Read More
All cities have a purchasing office and/or a procurement officer.... Read More
If you plan to do business online, then your website... Read More
Franchising has made the world look really small. The well... Read More
You've heard marketing and advertising gurus quip, "Sell the sizzle,... Read More
Did you ever have one of those days or weeks... Read More
Small Business |