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
best cleaning company Highland Park ..The FTC- Mighty Federal Trade Commission has unilaterally decided to... Read More
If you run a pressure washer business you need complete... Read More
Everyone is talking about small businesses. In 1993, when it... Read More
Concrete cleaning can be a lucrative business to start. Here... Read More
Introduction: This article is written as a general discussion on... Read More
North County San Diego has had some significant growth, and... Read More
To have one of the popular in home daycare businesses.... Read More
While driving through Pennsylvania farmland, you have probably noticed an... Read More
There is much competition in the mobile auto detailing business.... Read More
You're a small business owner with a hot new product... Read More
Everything starts with a business plan: If you don't have... Read More
Why does consistency in the message have an effect on... Read More
Great question!Freeing your time is an indisputably key element in... Read More
If an organization lacks a mission statement, it is worthwhile... Read More
Your on-line success is based on your efforts and yours... Read More
When is it a good thing to say no to... Read More
Competition in the business world is often viewed as a... Read More
Purchasing a franchise has become one of the most popular... Read More
As long as you eat and breathe you will stay... Read More
Have you ever heard the phrase, 'PREPONDERANCE OF PROOF'?I recently... Read More
Part of the power plan is making sure you have... Read More
When a person knows and knows not that he knows.... Read More
As a company grows, the owner's role begins to change.... Read More
I meet and talk to hundreds and hundreds of business... Read More
A tongue-in-cheek look at the skills required to operate a... Read More
high-end home cleaning Winnetka ..As long as you eat and breathe you will stay... Read More
Free money! Receive up to $25,000 that never has to... Read More
The restaurant industry in the United States employs an estimated... Read More
Now that winter has passed, the annual ritual of spring... Read More
"I don't know the key to success, but the key... Read More
Frankly, given the legal and regulatory requirements involved in attempting... Read More
Your business account comes with an ATM, Debit card. Pick... Read More
Now that you have invested your time, energy and money... Read More
Take advantage of world politics today and start your own... Read More
In the 2003 Auto Laundry News Survey it was determined... Read More
Shipping materials can be expensive! Even the styrofoam "peanuts" can... Read More
The Customer Analysis section of the business plan assesses the... Read More
If you're like the rest of us, you've spent a... Read More
It has been said that the only constant is change.... Read More
So you think you're not justified in taking time away... Read More
Achieving real success should be the goal of any good... Read More
As an Investment Representative you've worked hard to build trust... Read More
Today required franchise disclosure documents are over 200 pages generally.... Read More
If you really want to earn more money with your... Read More
No matter what kind of small business you have, you... Read More
Your business is only as good as the number of... Read More
Those who are in the pressure washer business should not... Read More
Many new ventures are preoccupied with all the money they... Read More
When small businesses fail, the wreckage is often assigned to... Read More
The goals of businesses have undergone much evolution from the... Read More
Small Business |