Should You Expand Franchise Opportunities?

Now that you are a franchisor, are you content with the gradual pace of growth of your franchise company, or would you like to expand franchise opportunities more rapidly? The answer to this question is likely to depend on your vision for the franchise company as well as on the financial health of the franchise company and the individual franchises.

Turning your business into a franchise is like jumping over a huge hurdle. It is hard to achieve, but once you do achieve it, the going can be comparatively smooth. Some businesspersons are content to let their franchise companies grow at a slow, organic pace once they have jumped over this first hurdle and achieved a certain size. Others are more ambitious and want to expand franchise opportunities aggressively by bringing new franchisees on board and spreading to territories further afield. Which of these models is the better one to follow?

 

What Options Exist to Expand Franchise Opportunities?

 

It is worth pointing out that running a franchise company is not quite the same as running a small business. One obvious difference between the two situations is that of scale: any gambles made when running a small business are bound to be smaller and to have fewer, more containable consequences. With a franchise company, risky decisions are not only likely to affect a larger number of people, but they are also bound to have more numerous and more complicated consequences. Thus, any discussion of whether to expand franchise opportunities must be sober and well-thought out. Accelerated growth can have negative consequences for a franchise company. It can result in great losses for the new franchisees, and this can ultimately have negative repercussions for the brand name. Hence, it is better to act prudently and make decisions that are backed by the facts on the ground.

There is an appropriate growth rate for every given franchise company. It is important to determine what yours is. If the existent franchises are not doing too well, it might be an indication that the goods or services offered are not competitive. It might also indicate that the franchise territories as they exist are too small. These are situations that call for changes other than expansion.

Trying to expand franchise opportunities internationally is another possible consideration. This can be a wonderful opportunity for growth, especially since overseas markets are bound to be underexploited. However, if you take this path, you will have to contend with franchise regulations in other nations and logistical problems like supplying products and training to overseas franchisees.

Once you invest in a small business, your goal is to expand franchise revenues and customer base fast so don’t be afraid to use your relationship with the franchisee to its fullest.

It makes sense that a goal to expand franchise earnings is part of your mindset as a new franchise owner.  You have a right to expect success after jumping through all the hoops it takes to sign a franchise agreement and put down the investment to buy a franchise from a major chain and set up business for yourself. Just the steps to go from interested franchise owner to running that business takes a lot of effort, stubborn perseverance, hard work and piles of money.

It is good to see that obstacle course you went through to grab that lucrative franchise ownership as just the beginning.  It is going to take plenty of hard work, money and even some of that stubborn perseverance to make your franchise a major profit machine that you want it to be.  Another trait all great franchise owners seem to share is an unshakable dissatisfaction with the status quo.  So even if you have a robust business, pretty good revenues and a great staff, that is no time to sit on your thumbs.  That is when you take your success and kick it to the next level to expand franchise success even more.

As a seasoned business person, you know there are many ways to skin a cat when it comes to methods to expand franchise success and earnings.  Before you go it alone, though, remember that the company that sold you the franchise and that collects franchise royalties from you each month wants to help out.  They have an army of season veterans of that know exactly what it takes to expand franchise customer base and earnings.  The franchisee benefits when you make more money so tap every resource they make available to you including signage, promotions and good solid business advice on how to get more customers and keep them.

The company that you bought the franchise from may have much deeper pockets and bigger ideas for marketing to take advantage of them to the fullest.

One of the best types of franchise help that the franchisee can provide is in the form of advertising. One thing that large national chains like McDonalds or Starbucks have going for them is they are well known and their advertising reaches millions of people.  When you see one of those slick and fun commercials for the franchise chain you are a part of, not only is that exciting but it means that the big money they are spending to generate business is going to come right in your front door.

Along with cashing in on the deep pockets that your franchise mother ship can use to create very effective advertising, they can help you put together advertising and promotions that will expand franchise business for your store or outlet directly.  There is more than one way to skin a cat when it comes to finding ways to expand franchise success. Let your partners in franchising help you skin that cat and make your franchise small business even more profitable than ever before.

To expand franchise revenues, provide plenty of support to every franchisor you have.

As a franchisee, your fortunes depend on how well you can expand franchise revenues and growth.  The formula of franchising is not rocket science. Making the big bucks by franchising your business means quite simply, you get rich when they get rich. So anything you can do to help your partners succeed in every aspect of franchise operations, the better.

Your franchise owners are just as stirred up to expand franchise earnings as you are. They got into owning a franchise of your company for a ton of reasons.  They fell in love with the idea of the pride of owning their own business, of being their own boss and the adventure of building a franchise small business. But above all, they fell in love with the big bucks that can be had running a very prosperous franchise. If they are going to make those big bucks and make your bank account explode while they do it, they will need your help.

To expand franchise income and business, the franchisors depend on your resources and experience.  One area that is under your domain that can vastly increase revenues at the franchisor level is advertising. You don’t have to put TV ads up with talking babies or cavemen to get the word out about the great stuff to be had at your franchise operations. Just use your advertising resources well and it will expand franchise business.

There is a simple principle that is easy to just toss off in a sales meeting but harder to live up to.  But it is the one principle of dealing with your franchise owners that will do more to expand franchise profitability than anything else.  That principle is communication. Whether you one 5 franchises sold or 500, be aware of how they are doing and keep communication active so you know when problems start to rear their ugly heads.  Then you can swoop in to the rescue and make the profitable again.

Take nothing for granted when bringing along a new franchise owner.

The idea of giving franchise help to your franchise owners is even more important. Never take for granted that a new franchise owner is ready to take the ball and run with it toward great success.  The one thing a new franchisor has in bumper crops is enthusiasm to expand franchise customer base and profits. What a new owner of one of your franchises lacks is the wisdom and street smarts you have to make their franchise a huge success.

Starting with the orientation you do, the initial interviews and right on through to when that new franchisor opens the door of their new business, never take the success of that new franchise owner for granted. That new member of your team may be a successful business person but don’t assume they know their way around the franchising game. But If you mother hen all of your franchisors both when they start out and even after they are major league money makers, you will enjoy watching them expand franchise earnings steadily year after year. You will enjoy the big profits they bring to your company even more.