Expanding Franchisee Advice

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

In The News:

Shop Small Hawaii membership sees record growth  Pacific Business News (Honolulu)
25 Business Gifts for Under $50  Small Business Trends

Window Cleaning Business Future Challenge With Self Cleaning Glass

Self-cleaning glass has been talked about a lot, with such... Read More

Franchise Territories for Mobile Businesses; Why Limitations

In franchising an individual desirous of their own business will... Read More

Street Wars Between Mobile Car Washers and Mobile Auto Detailers

There is much competition in the mobile auto detailing business.... Read More

Essex Accountants: Top Things to Look For

One of the most common horrific mistakes a business can... Read More

Top Ten Resolves for Building Your Business in 2005

1. Resolve to build a consistent network system.Since referrals are... Read More

Marketing a New or Small Business on a Budget

There are almost as many opinions and views on marketing... Read More

Carwash Manual Sample Outline

Car wash businesses are unique to other businesses. In fact... Read More

We Know Who THEY Are

Am I the only one that does not have an... Read More

Passion Is Key To A Successful Business

Passion. Passion alone can make your business successful. As an... Read More

Janitorial Cleaning Service: Getting Started

A janitorial cleaning service is one of the best businesses... Read More

Buy a Flower Shop: Serious Considerations

You've always liked flowers and you think the idea of... Read More

Is It Recess Yet?! Confessions of a Self Employed Workaholic

I have a confession to make. My name is Caroline... Read More

Taking Stock

Back when I owned an inventory-based business, one of my... Read More

13 Steps to Protect Yourself from Your Bank

The success of your business is critically dependent on how... Read More

Todays Chef, Tomorrows Restaurateur -- Startup Tips by Restaurant Consultants Inc

Researching information for a recent business plan, I came across... Read More

Cashing In Your Chips & Pastures New

No, I'm not talking about gambling or dairy cows ?... Read More

Shortcuts Will Kill Your Business

Think of your business as a living, breathing, organism. It... Read More

Be Prepared When Business Investors Look Beyond Your Business Plan

You have spent considerable time pulling your business plan together,... Read More

10 Best Practices to Consider as Your SBIR Negotations Approach Contract Signature

10 Best Practices to consider as your SBIR negotiations approach... Read More

Small Business Publicity -- Worth It?

You bet it's worth it. Publicity via news releases, along... Read More

Dispute Resolution; Competing With Other Franchisees

If you are in a franchise and have a territory... Read More

Accounting and Billing Procedures for Small Business

No matter how small your small business is, it is... Read More

Pressure Washing Aircraft Hangers at the Airport

If you are looking for a way to own your... Read More

Business Valuation is Critical

What is Business Valuation? The term business valuation is the... Read More

Starting is the Hardest Part

You can't imagine how many people ask me how I... Read More