Managing Your Franchise’s Growth Is Crucial

Spreading its brand-name in each and every market is the dream of any franchisor. But like everything else, the best franchises are supposed to grow in a systematic way and growth has to be regulated as well.

Unplanned or too fast growth can harm you in the long run. So, here are some tips on how to grow your franchise at the right level.

• Decide on the factor, which you will consider as indicator of growth. Is it the royalty earning or the number of new franchisees? So, plan your growth strategy accordingly.

• If the amount of royalty earned is your indicator of growth, then you should pay more attention in developing of your brand-name and existing franchisees. If you have a long-term vision in mind, you mustn’t mind a slow increase in revenue earned and income as long as your business is steady. As your business develops, it’s natural you will get more and more clients and prospective franchisees.

• If the number of new franchisees is your measurement of growth, then you have to pay proper attention towards the development of the franchise support system. Ideally, there should be one support system person for each 15 to 18 new franchisees. This way, new entrants will be provided with effective training and support.

• Another way of measuring your growth is to check out the percentage of the new franchisees to the existing ones. If it’s something lower than 10, it becomes evident that your franchise system is not doing well and you are supposed to do something for its betterment. If it’s above 35, then you can come to the conclusion that you are progressing too fast and unless you have excellent support system, your system may collapse in the future due to excessive burden.

• See what kind of unit your new franchisees are. If they belong to multiple-unit franchisees, then everything is right with your franchise system. Existing franchisees are very happy with your company and there’s great demand for the product/service in the market. That is why they are opting for a second or third unit! Moreover, with this kind of unit, you can grow quite easily. Since existing franchisees are opening the units, you don’t even have to train and teach anyone from the scratch!

brandEXPANSION’s franchise development team can help you plan for and manage growth. Contact Jack Eberenz for more information.

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