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Growing Your Franchise Business

Growing Your Franchise Business

Growing your franchise business comes down to a few key concepts.

The most important key to understand is what is working and what opportunities are sure-fire techniques to grow.

You have three paths.

  1. Grow the franchisee count.
  2. Grow the franchisee sales.
  3. Grow the revenue and profitability of the parent company.
  4. Hire a consultant

You want to do all 3. Let’s go over each one.

1. Grow the franchisee count.

You obviously did things very well to onboard franchisees in the first place.

Go back to the processes that sold them. What is often the key to duplicating them is the single item that convinced your franchisees to sign up. Many franchisees signed up for different reasons when looking at it broadly, but there were a few key core concepts that sold every single one of them. It’s not easy to always identify that, but if you do you will really understand your X-factor. Things you do that don’t exist with anybody else, or some marketing concept you did that no one else did to attract them and get them to sign up.

Double down on what is working.

2. Grow the franchisee sales.

The best way to do this is a have a very competent qualified regional manager who can focus on growing the territories.

If you aren’t large enough to have one person manage a dozen territories or so (or fewer, dependent on the average franchisee profit), then you want 1 franchisor manager at the very least for x number of franchisees nationwide.

Their sole responsibility is to grow the revenue and profitability for the franchisee.

This results in greater royalties for you, allows you to charge higher Monthly fees to the franchisee if there is value there, and can be used as a great marketing tool, to gain new franchisees.

The key should be to do advertising for the franchisee, or to clean up inefficiencies within the franchisee locale.

3. Grow the revenue and profitability of the parent company.

The parent company’s revenue might solely come from signing on new franchisees and royalties. The royalty numbers should grow with the right managers in place, but the franchisor might be able to benefit from products and services that the franchisor offers besides opening a new franchise.

You should have your own territories that you own, but you should also have products and services that you sell. Remember, with every franchisee that opens up you now build the presence of the parent company. The parent company receives a lot of the marketing benefit from the local territory presence. When they come to the website, they go to your website. When they pick up the phone, they often times call your number. It’s time to think outside the box. You also want to get in to the real estate game, which is where you can really make a lot of money with your franchisees. McDonald’s mastered this better than anyone.

You also want to create a suite of products for your franchisee. Remember, your franchisee is a business in and of itself. They need tools that operate their business. You don’t want to offer products and services that you have no experience in, but you want to become a resource for your franchisee to really lean on. Provide as much value included in the deal as possible, but you also can charge for things if it makes sense, especially if your franchisee would be paying someone else for something you do well.

4. Hire a consultant

See where the low hanging fruit is. Understand the best marketing tactics. Leverage a consultant who can help you see things from the outside, you are not seeing with tunnel vision. Bring on new blood. It doesn’t have to be costly.
If you would like to hop on a call with us to go over things related to business, please schedule a time here. We do a one hour deep dive where we go over your needs as it relates to business expansion.

To get started with business consulting, hire us:

Phone – (800) 773-1523

Email – consulting@jarbly.com

Get Started with Consulting. – Hire Us Now – Get Started with a One Hour Call

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