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Handling Explosive Growth

Handling Explosive Growth

Most franchisors would like to have to deal with the problem of explosive growth, i.e. selling hundreds of franchises in the first few years, but this can be a problem.

If the franchise system grows so rapidly that methods, procedures and support cannot keep up, a franchisor can end up with franchisees that are unsuccessful, and very unhappy.

There have been franchise chains that grew so quickly that the franchisor was unable to provide the support needed by new franchisees, including approving locations. You may have read of some of these chains in the business media. Some such franchisors reached a position where they had sold hundreds, or even thousands, of franchises, that were not yet open.

It may seem that they should have been able to keep up with the growth. However, as sales increase, so does overhead, and if a franchisor is not careful, it is possible to reach a point where the franchise fees have gone into overhead, and taken out as profits, leaving insufficient funding to support new franchisees before and after opening.

So, what is a manageable growth curve? Many successful franchisors sell about 5-10 franchises in the first year, and then build their system from that point. We believe it is important to develop a base of successful franchisees, and have the systems in place to support them, before “exploding” the franchise system by adding hundreds of new franchisees each year.


More information can be found at:  www.biltmorefranchise.com


 





Handling Explosive Growth - To learn more about this author, visit John Power's Website.

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Jeff Foster
WebBizIdeas.com is a Minneapolis website design company founded to help people start an internet business by providing them with website, business, and internet resources that help foster the growth of successful online businesses and develop innovative Internet business ideas.  We specialize in internet consulting & internet marketing
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About The Author


John Power
(Visit John's Website) John Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co

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