If you happen to be the owner of an independent pizza shop, and you’re ready to take your business to the next level, a conversion franchise may be something for you to consider. And they’re on an upward trend. Why?
Because sales of new franchise units have been pretty flat as of late, and some franchisors are using some very creative (and effective) ways to attract prospective franchise owners.
One way is by convincing (gently, of course) owners of independent businesses to consider converting their businesses to franchise businesses. This can work out well, in some situations.
More often than not, it depends largely on the personality traits and management style of the prospective conversion franchisee. In other words, conversion franchising isn’t for everyne.
Specifically, if the independent owner is too set in his or her own ways, it could be a nightmare for both parties; the franchisee may not be as open to following a lengthy franchise operating manual as he or she first thought. After all, franchising is a rule-based business system.
On the positive side, if the new franchisee follows the plan, the business could get to a new level.
Conversion Franchises: An Example
I found a good example of conversion franchising on the Trembly Law website:
“Consider a mom-and-pop auto garage that has been doing routine tune-ups and minor collision repair for decades. The business was passed onto the son and daughter of the original owner a few years ago. The children enjoy running the business, but aren’t as passionate about the nuts and bolts as their father. So, when they are approached by a chain about possibly opening up as a franchise location under its branding and operational procedures, they are interested and engage in talks with the franchisor, ultimately signing an agreement.”
Makes sense, right?
Undoubtedly, you know a few independent businesses that are in need of a conversion!
Finally, Mark Siebert, the CEO of The iFranchise Group, was kind enough to share his perspective on conversion franchising, and some general trends in franchise development with me in a recent Small Business Trends post.