Franchise or Company Owned Growth? Much to consider.
Growth Through Franchised Versus Company Owned Units
Deciding between franchise or company owned growth stymies thousands of successful business owners. It’s a perplexing issue, but for examination here’s some food for thought.
Is Yours A Proven Concept?
Only a successful business should be franchised. A business without a firm system locked in concrete is not a good franchise candidate. Of course, tweaks required to sharpen all businesses are never a negative.
Franchising Versus Company Owned Have Different Concerns
Franchisees are not employees. They cannot be viewed as such, but if they are viewed in such a way, that attitude will ruin relationships. A ‘commander in chief’ attitude works in company owned systems, but not in franchising. Good relationships are the backbone of successful franchising. One must understand their personality and personal management style.
3. Can a combination work? Generally No.
Quality franchise relationships are mostly a function of trust and performance. Many franchisors want to ride two horses: owning some and franchising others. We think that’s a bad idea. Decide what business you’re in, then think about whether or not to franchise.
4. Franchise Or Company Growth: Geography
Franchising in and of itself is just another form of distribution. Products and services best managed in a tight geographic space and demanding corporate attention lean toward corporate style. People management also needs assessment.