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Are They Growing Their Franchises?

growth

Most franchise owners want to.

But, not all of them do.

And, that’s okay.

 

It’s True

Just about everybody I’ve worked with over the years has told me that they’ve wanted to find a franchise that they can grow.

Growing a franchise business can be done in a few different ways:

  • Adding units-adding more locations
  • Adding space
  • Adding employees
  • Adding territory
  • Adding other franchise brands

 

Franchise Growth In Theory

In theory, and on paper, the idea of growing a franchise business can look quite appealing. (Multiplication can do that.)

Some Hypothetical Math

If one franchise location = $300,000 in gross sales

Then three franchise locations = $900,000 in gross sales

More locations = more revenue = more profit

Right?

 

Franchise Research Question

Question #34 of out my top 40 questions to ask current franchise owners is this one:

Do you have any growth plans? Will you be adding another unit, or more space?”

It’s an important question to ask, and here’s why:

You need to know if the franchisees that you’re talking with are growing their franchises, or are considering it.

But, when you’re calling 10-15 franchisees (as part of your research) you’re going to be talking to owners that are in different stages of ownership. Some owners will be new; some will be halfway through their term, while others may be thinking of selling their businesses. So, make sure that you’re looking at each franchisee you’re calling on an individual basis. They’re all going to be different.

And, some just aren’t interested in growing their franchises.

That’s okay. Don’t judge.

I’ve found that some franchisees are quite content having one location-one money-making location.

On the other hand, I’ve talked with franchise owners that want to grow their businesses, but can’t.

If you’d like to know why…ask me in the comment section, below.

If you buy a franchise, how are you planning on growing it?

 

If you would like to increase your chances of success as a franchise owner…

Go here

 






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About The Franchise King®

My name is Joel Libava, and I'm the author of Become a Franchise Owner! In addition, I'm a franchise ownership advisor. I teach people the best way to choose, research, and buy franchises.

  • Dave

    I am new to the business ownership world and am currently investigating franchise opportunities and like the multi-unit developer concept. I’m concerned though about financing. It’s difficult enough to pull the money together to get 1 unit started, but then trying to get even more money together for a second or 3rd unit somewhere in the not too distant future seems like it might be impossible. I might then be stuck with a single unit that does not generate enough income to comfortably live off of.

    • http://thefranchiseking.com/about-joel-libava-the-franchise-king The Franchise King

      Hi Dave,

      You are 100% correct.

      However…

      Nobody can predict the future. Lots of folks purchase the rights to multi-units, and feel the same way that you do now.

      If your net worth is up there- $750k of more, multi-unit franchise ownership should be at least on your radar screen.

      Wanna talk? Go here- http://www.thefranchiseking.com/talk-about-franchising-the-franchise-king-free-call-fridays

      JL

  • http://www.biz2credit.com/ william james

    I like the way you writing your blog!! Buying a franchise is not a easy task to do you have remember lots of things. Like company reputation,customer reactions about that company.