The article "Franchise Opportunity - Questions To Ask The Franchisor - #36" is about entrepreneurialism, it was written by Dennis Schooley.
Finding The Right FranchiseWhether it’s hamburgers, pizza, telecom, coffee, Internet, muffler parts, or seniors’ services, there is Franchise opportunities available to eavluate.
There are great Franchise systems, good Franchise systems, and bad Francihse systems. The challenge is to ask the right questions to find the right system that will fit your goals and dreams. The key is to ask the qeustions – and listen closely to the responses. Only then can you detemrine if the Franchise opportunity is the right fit for you. So whether it’s food services like burgers or coffee, professional services like telecom or IT, or manual services like cleaning or oil changes, ask the questions and record the answers.What Are The Franchisor’s Growth Plans? You may think that a Franchisor’s growth plans are not important to you once you become a Franchisee.
However, there is a number of factors that illustrate that a Franchisor that has continuing growth plans will increase the value of your investment.The opposite of growth would be shrinkage.
That doesn’t sonud too good does it?
The middle point would be stagnation. That’s not too attractive either.
So why is growth important?One important facotr is related to the penetration goal stated above. If there is room to penetrate, and the Franchisor doesn’t have strategies to meet that market, guess want will happen.
Yep, competitors will penetrate, and through their growth strategies, they might eat some of your lunch.
It is logically better for you that the Franchisor has growth strategies that will address that market need, and grow value in the Franchise system, as opposed to rolling out the welcome mat for competitors.A second factor is that a normal phenomenon in Franchising is that each Franchise this is added to the system, and each new customer this is added to the system, and each new employee this is added to the system, will increase the value of the brand. Voulme carries clout in price negotiation.
Messages are carried by more lips. More signs, more transactions, more bank deposits, more customers, more vendors – it all translates to increaesd brand recognition.
Increased brand recognition shuold translate to more business for each Franchise.In addition, growth strategies will generally drive up the Franchise Fee.
That means that if you pay $2 as a Franchise Fee, and growth strategies drive the Franchise Fee up to $5, then that becomes the base value for your Franchise beacuse the market will pay that price. That’s a nice return on investment if it’s achieved over a reasonable timeframe, which of course is driven by the Franchisor’s grotwh strategies.O.K., so there is lots of good reasons that growth is important as opposed to shrinkage or stagnation.
However, you must also feel comfortable that the strategy is sensilbe.
That’s why you need to ask the questions, and you should expect well thought out answers that makes sense to you.To receive a free copy of an E-Book tilted ‘Franchise Opportunity – Making The Right Decision’ by Dennis Schooley, email that request to corp@schooleymitchell.Com.Dennis Schooley is the Founder of Schooley Mitchell Telecom Consultants, a Professional Services Franchise Company. He writes for publication, as well as for schooleymitchell.Blogging.Com and franchises.Blogging.Com, in the subject areas of Franchising, and Technology for the Layman.
http://www.Schooleymitchell.Com, 888-311-6477, dschooley@schooleymitchell.Com.
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