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Follow on Google News | The Franchise Modeling Process: When Are We Ready To Develop?I am very blessed to be able to review scores of new potential franchisors and their various business models every year.
By: Francorp Inc. One area of much concern is, even if a potential franchisor has a proven and profitable system worthy of franchising, is their existing store unit or other given unit structure indicative of what they are selling to their first franchisees? This inspires many brilliant business models that have all of the relevant tools in place to franchise their system to delay their expansion in favor of building at least one, and many times many more company-owned units prior to expanding their business. In effect, they are temporarily stalling their franchise development in favor of having a more “visible” platform to sell. In some cases, this may be the correct thought process, such as when there is more than enough adequate capital to rapidly build more company units without losing significant “market-momentum” We live in a modern architectural age for retail and office store design. For example, several of our vendors in the realm of store architecture, financing, and related logistics can literally create a turn-key perfected model, lease it back to a new franchisee over seven or eight years, and illustrate the end result using the newest computer design tools so accurately that putting money and energy into fully developed company-owned units is just a paralyzing waste of time. “Time- Selling the first five units of almost any franchise model is the hardest part of entering the market for most new franchisors. There are few things more valuable than the trust our initial franchise buyers are putting in us when they agree to buy into a system that is working well as a stand-alone operation, but is yet unproven as a successful multi- For most successful business systems in the modern day, being able to prove the benefits of your reliable system and the support provided therein is much more important than having the perfect model store firmly in place. However, every business needs to consider this question individually. Take the time to strategically analyze the benefits of both options by doing a complete S.W.O.T. analyses (Strengths, Weaknesses, Opportunities, and Threats) of delaying your “Time-to-Market” Interested in learning more about franchising and/or how to franchise (http://www.francorp.com/ End
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