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:


Who Makes the BEST Alliance

What types of companies do you want to align yourself... Read More

Small Business Planning -- Three Myths

Are you -- like 70 percent of small business owners... Read More

Measuring Your Way to Success

Are you a motivational speaker who consistently gets rave reviews... Read More

Shortcuts Will Kill Your Business

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

Everything I Need to Know About Business I Learned From My Nametag

So there I was ? sitting in the audience of... Read More

Computer Tips that Help Small Businesses Operate Profitably

When working properly, computers enable small businesses to make big... Read More

Recognizing Employees? Contributions Can Go a Long Way

Every employee would like to earn as high a salary... Read More

Why Small and Medium-Sized Businesses Should

As the owner or an employee of a small-to medium-sized... Read More

Boat Hull Cleaning Procedures for Owners and Detailers

For really tough boat hull cleaning you will need to... Read More

Build Your Small Business by Building Relationships

-- The One Pager Shortcut Series --People do business with... Read More

Creating a Dynamite Account Plan

Why do you need an account plan?When you first decide... Read More

Community Relations Strategy for Small Business

Does your company have a community relation strategy? Have you... Read More

Where To Get Money For a Franchise Idea

How often have you thumbed through a business opportunity magazine,... Read More

Your Small Business Suggestion Box

A suggestion box is a really good idea for your... Read More

The Hidden Treasure in Your Business

I started working with another new client last week. He... Read More

A Great Logo Is A Marketing Must-Have. But Is It Affordable For Small Business Owners?

And is having a logo really that important?My answer to... Read More

Get In Touch With Your Competition!

We all know that competition is an ugly word but... Read More

Covenants Not To Compete: Another Franchise Quandary

Imagine that you have operated a successful franchise business for... Read More

Are You Using a Chess or Checkers Small Business Marketing Strategy?

Until the day I learned to play chess I loved... Read More

Be Nice to Your Payroll Department

Ok, so next to the taxman, your company payroll department... Read More

Simple Business Tactics Are Your Key To Success

In a world full of complications sometimes we overlook the... Read More

How to Increase the Cash Flow in Your Private Practice in 30 Days

If you have a busy private practice, chances are you... Read More

Winning in Business - Lessons from Lance Armstrong

Lance Armstrong this week won an unprecedented 7th Tour de... Read More

How Small Business And Nonprofits Can Afford Multimedia For The Web

Multimedia is everywhere on the Internet, whether in the form... Read More

Small Business Support Equals Survival

Support is critical for your small business survival. You may... Read More