Franchising Path

When Should You Expand Your Franchise?

When deciding to launch your next franchise location, there are a few key indicators you should look for. It takes more than a desire to generate more money to expand your franchise business. You should verify that your product has a large enough consumer base and a strong enough demand to make the new location a success.

Important Factors to Consider

Extending your franchise business is a significant step. However, you should first consider these factors:

Is your existing location's consumer base too large for your personnel to handle?
Is it possible to accommodate the overflow by simply expanding the size of your business?
Is your consumer base substantial enough to justify a second franchise location?
Have you decided on a location for your second business?

Below is a list of key variables I assembled that can help you determine when to launch your next franchise location and assure its success.

1. You Have Many Loyal Customers

If you have a significant number of regular, loyal customers and your candidate base is growing, it suggests there is a steady increase in demand for the product or service you offer. Repeat consumers are essential to the success of any franchise. When you observe a consistent, recurring revenue stream year after year, it's time to think about building a second site.

2. Customers Frequently Inquire About The Possibility Of Opening Another Location

If numerous candidates who regularly spend money at your existing site ask when you're going to establish a second location, it's time to expand. The ability to better serve your consumers should be the driving force behind your expansion goals.

3. Your ROI Is Increasing Consistently

If your present franchise's earnings are continually improving, it might indicate that the market is ready to support your expansion into a larger or second location. Short-term success should not be used to make this decision. However, if your candidate base, sales, and profits consistently grow over time, expanding into a second site might be a profitable business option.

4. Your Franchise Is In A Rapidly Expanding Industry

Examine the trends in your industry before opting to open a second location. For example, if your study indicates that your field is expanding, now could be the time to create a second site. By adding another location, you can enjoy profitable short-term rewards and enhance your franchise by offering additional items or services to candidates.

5. Your Current Location Is Overwhelmed

If your franchise is drawing far more business than it can manage in its existing location, it may be time to expand. Don't wait until congestion or extremely long wait times for service begin to damage your business. Take action if extending franchise operations to a second site would help you manage consumer demand better and even attract new consumers.

6. You've Done Your Due Diligence

Opening and operating a second franchise location involves financing, franchisor consent, necessary structural adjustments, and an assessment of growth possibilities and potential liabilities. If you've done your homework and your calculations show that the outcome of an expansion is overwhelmingly positive, it's time to open a second location and grow your business.

7. You Have The Necessary Skills, Abilities, And Resources For Growth

Developing and expanding a business involves a distinct set of skills, abilities, resources, and opportunities. Examine your business's performance, candidate base, and prospective market size and share. If they are all in your favor, then it’s time to expand into another area where new candidates are eager to spend money with you.

8. You've Put Together a Great Team

Running a profitable and effective franchise takes a collaborative effort. You must have a staff with which to share the responsibility of operating two business locations on a daily basis. If you have a team that possesses the knowledge, concentration, vision, customer service, and time management abilities required for the success of a second site, you are ready to expand.

Are you ready to expand your franchise? If so, please schedule a call here.

See How My Candidates Are Enjoying Entrepreneurial Freedom

In today's economy, franchise opportunities are endless. Close examination reveals, however, that not all franchises are created equal.

There are numerous benefits to working in the franchise industry, including some brands that have been resistant to recessions, have lower start-up costs, and some with little overhead. You may benefit from a higher quality of life with the ability to work your own hours and make your own decisions.

Many of the franchisees I've worked with have succeeded, and I'd like to tell you about one of them. Michael C. is someone I'd like to introduce to you. His thoughts are below.

Question: What were the top three things you were looking for in a business?
Answer:

Profitability
Franchisor support
Something I would enjoy being involved in

Question: Did you experience fear or hesitation?
Answer: Yes, when I ran the numbers and saw the financial commitment and potential for loss. I made the numbers as conservative as possible to see if the model was still profitable.

Question: How valuable did you find talking about with franchise owners?
Answer: I listened to every validation call I could and found it extremely useful.

Question: Did you feel well-equipped at the start of the validation process?
Answer: I felt reasonably well-equipped, especially after buying and reading a couple of books (and working with my consultant).

Question: When did I know this was the right franchise?
Answer: After becoming aware of how thorough the support was from the franchisor.

Question: Do you think you would have found this business without my help?
Answer: No. It was not on my radar for some reason.

Question: What did you think about the unique perspective I gave to you being an experienced multiple-unit franchisee?
Answer: The track record of having been through this with multi-franchises (Ryan introduced me to) helped give me a full picture.

Question: Now that you have gone through my process, what advice would you have for someone that is thinking about owning a franchise?
Answer: I would advise them that since they are making a huge, possibly life-changing decision, do what I did, research, buy/read books, talk to knowledgeable people, investigate the company inside out, read key documents (e.g., FDD), listen to any/all validation calls, run the numbers.

Let me help you find your path to franchise ownership. Please schedule a call here.

Franchising 101: What is a Franchise Consultant?

For many of us, the idea of owning our own business and enjoying the freedom and independence it can provide is a worthwhile goal to strive for. However, you may get frustrated with the amount of work required to search for just the right fit for you.

A franchise consultant can provide invaluable assistance and experience to those looking to invest in the “right fit” franchise model.

I'd like to share essential information and provide you with more knowledge on what a franchise consultant does and how one can help when you are looking for the right brand for you.

What Exactly Are Franchise Consultants?

A consultant is someone who provides advice or knowledge in a specific area. A franchise consultant is essentially someone who guides you through the twists and turns of the franchise industry and advises you on how to navigate it.

If you are unsure of what you want, how to get there, or where to begin, a franchise consultant can help you define all of this and more.

What Does a Franchise Consultant Do?

Franchise consultants will meet with potential buyers to explore their interests and talents to select the ideal type of franchise. They assist at every stage of the process, from establishing their interests to directing them to suitable opportunities.

What Qualities Should You Expect in a Franchise Consultant?

Franchise consultants should collaborate directly with you. They should begin by examining your goals, learning your skills, and understanding your motivation for wanting to own a business. Next, you'll talk about your financial options and look into possibilities in your market to find the best match.

There are thousands of franchises to choose from, and most potential buyers find the process difficult. Franchise consultants are there to help guide you through the process. Here are some qualities to look for when selecting a franchise consultant.

Experience

You want to work with someone who has years of experience working on both sides of franchising, both franchisors, and franchisees. They should have prior experience as either a franchisee or as a key member of a franchisor's team. Ask for evidence of their experience.

Dedication

People will sometimes consult as a supplement to their primary business. Choose a consultant who will assist you in selecting the best opportunity and lead you through the process. They should involve help with paperwork and the initial set-up of your new business.

Their Reputation in the Industry

Their reputation in the industry is vital. You want to work with a consultant who is well-versed in the franchising world. Choose someone with a comprehensive understanding to help you choose the ideal franchise to fit your specific needs, goals, and strengths. Ask for referrals and what other candidates are saying.

Cost

Make certain that any consultant you work with is completely free. Look for an independent consultant, not one that is paid by a franchise to help recruit potential franchisees.

Quality List of Franchises

You don't want a franchise consultant to push specific franchises regardless of whether they are a good fit for you. Instead, you want someone with connections and a strong list of franchises for you to consider.

The franchise consultant should have diverse contacts for all types and sizes of investments. They should be well-versed in each, having conducted extensive research, including reviewing their Franchise Disclosure Agreements. You want to be certain that you are investing in something you can completely believe in.

Remember that the purpose of a franchise consultant is to match you with a brand that suits your requirements, goals, and talents.

If you’d like to find out how I can help you find your franchise match, please schedule a call here.

Why Will Home Service Franchises Continue To Grow In 2022?

Tens of thousands of people who quit their jobs in 2021 chose to become entrepreneurs and invest in themselves with a franchise. As a result, service franchises, particularly home services franchisees, experienced significant growth. This growth comes as no surprise to me.

While quick-service restaurants and many other brick-and-mortar franchises are still struggling, the pandemic has increased the appeal of service-based franchises from a business standpoint.

Our homes have grown increasingly important in recent years. We spent more time at home during the pandemic because of home-schooling and a shift to work-from-home jobs. Furthermore, the real estate market has been scorching. In 2021, housing prices in the U.S. climbed by approximately 20% over the previous year.

If you own a home services franchise or are considering purchasing one, here are a few trends to look out for in the next year.

An Increase In Technology-Focused Franchising Opportunities

Technology, as it has in every other business, has substantially altered how franchising operates. Franchise systems can manage their entire brand from a single dashboard. The same goes for franchise owners' marketing, sales, and operations.

Home Services Franchises Build Connections With Homeowners

When real estate is good, and values are rising, homeowners have the confidence to improve their homes using the equity in their properties. This positive growth in the real estate market is assisting in the expansion of home service franchises.

The appeal of home service franchises is that they can be both personally rewarding and profitable. Low start-up costs and high value are appealing, as is the chance to build long-lasting relationships while helping homeowners and their community.

Having an ongoing connection and multiple touchpoints with a customer is a franchise brand's dream. Home services franchises do just that.

Service Professionals Are Purchasing Franchises As An Addition To Their Portfolios

Multi-unit and multi-brand franchise ownership are not new concepts in the world of franchising. However, I'm seeing an increasing number of service providers add home services franchises to their portfolios.

As we look ahead into the remainder of 2022, I’m incredibly excited about what the home services franchise industry has in store. You should be too!

Would you like to be a part of the home services franchise growth? Please schedule a call here.

UPDATE: Read the trends for 2023 here.

How To Choose The Best Franchise FOR YOU

With various franchises in many price ranges to choose from and hundreds of resources and information packages to comb through, finding the right franchise opportunity is not a simple task.

To help, here are my top ideas for increasing your confidence and chances of success while evaluating franchise opportunities.

Define What You Wish To Accomplish

When starting a new business, it's important to have a clear vision of what you want to achieve.

Do you want to start your own business, make money, be your own boss, or have more free time? By defining your real goals, you will be able to identify which franchise model is a perfect fit for you and will assist you in achieving those goals.

You should figure out what your major motivator is. After you've determined this, you should think about what you like doing.

Do you enjoy working in an office setting?
Do you like a labor-intensive physical business?
Would you be effective at hiring, training, and supervising employees?
Do you prefer to work independently?

The answers to these questions can help you decide how to combine what you like doing into your business objectives and plan.

Do Your Research

If you already have a franchise in mind, the next step is to learn everything you can about the brand's history.

You'll need to learn about the company and its owners, how long it's been in operation, and if there's a demand for their service or products. You must also examine any boom or bust cycles and any new laws that may have an immediate impact on the business.

You should also consider how the economic climate has impacted its worth. This might be difficult at times, but remember that it's good to question the franchisor if there's something you don't understand, and don't hesitate to ask for additional information if you're not content.

Company culture is vital to company success, so examine if the franchisors prioritize network support and revenue growth or whether they are simply interested in bringing on new franchisees when existing franchisees exit the business.

A healthy connection between the franchisor, the support staff, and the franchisee is the foundation of a successful franchise business. If you don't like the personnel or the corporate culture, chances are it won't get any better if you become a franchisee.

Remember that while franchisors may try to wow prospects with flashy brochures and presentations, you'll need to look past those and dig deeper.

Compare And Contrast Training And Support Systems

Be sure you're satisfied with the assistance and training provided by your franchisor since this will be a critical component of your success.

Some franchises assist franchisees in finding high-quality employees and provide marketing expertise to grow rapidly. This assistance is great for accelerating your path to success while avoiding the drawbacks connected with launching a new business.

A successful business model should give the necessary assistance from the start, allowing you to get your business up and running and earn a healthy profit quickly.

If you don't have this sort of support, difficulties will develop once you've launched your business. Every successful franchisor should have a business model that has been tried, tested, and refined. They should know what works and what doesn't to provide you with all of the information and guidance you need to get started and stay on track.

Examine Your Financial Situation

Considering your resources will offer you a realistic picture of what franchise options are available for your budget.

Starting on a shoestring budget is risky and frequently unreasonable. Instead, you should search for a business model with low start-up expenses since this will make it easier to launch your franchise and start making money.

Most franchises will help you secure the necessary funding and the essential business planning to ensure that it is a viable opportunity.

If you’d like more information on how entrepreneurs choose franchises, please schedule a call here.

Attending a Franchise Discovery Day? Follow These 6 Tips To Get Ready

Discovery Day is an excellent opportunity to experience a franchise before committing to a franchise agreement.

But what should you consider when attending a franchise Discovery Day? These six tips will help prepare you.

1. Prepare for possible ownership by doing your due diligence.

Carry out the essential research and planning before you attend. Most prospective franchise owners will need to research and prepare, especially in areas of business where they are not experienced.

2. Recognize the learning curve that comes with operating a new franchise.

Any new venture can be difficult. For many franchisees, this may be their first step into a business. Starting a new business can bring on new hurdles even for the most seasoned entrepreneur.

Becoming a new franchisee is a learning process, and embracing it benefits you, your employees, and the franchise. First, ask the franchisor about the support system, and then talk to other franchisees about how the corporate office follows that system.

3. Evaluate the franchise's adaptation and flexibility in the face of a changing economy.

Where can the franchise provide value to the local market and the franchise system?
Is there an absentee or semi-absentee option for the franchise owners?
Is there a system and culture in place that can pivot if future unforeseen circumstances occur?

For example, you should think about how the franchise can adjust when events like a pandemic occur.

4. Determine what success is.

Determine what success looks like, and then analyze the franchisor's procedures, growth strategy, and market tactics. As a potential franchisee, you can next decide if the franchisor's methods and values fit with your vision of franchise ownership.

5. Identify possible market hurdles that the franchise will encounter.

Unexpected hurdles will develop as a result of competition and company disruptions. Prepare for adversity, so when it happens, you are ready. Having the right procedures in place and executing them will only help your business grow.

6. Face your anxieties and be prepared to address your concerns when purchasing a franchise.

Make a detailed list of your concerns before attending a Discovery Day and pay attention to how the franchise addresses them.

Other franchisees are also an excellent resource, and the majority will have had comparable experiences. Ask if their anxieties and doubts were eliminated after starting their franchise.

Owning a franchise can be a very rewarding experience, which can provide a high level of flexibility, independence, and work/life balance. Regardless of the franchise you purchase, go to Discovery Day with a positive open mind to make it the best experience. After all, you are interviewing them as much as the franchisor is interviewing you!

Following my Discovery Day tips and asking the right questions can help you create a successful path forward as a franchisee.

Find out more about Discovery Day by scheduling a call here.

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