There are almost as many expansion strategies for franchising companies as there are franchisors in the market place. Some franchisors start on a shoe-string and build local and regional domination, while others start offering franchises in all 50 states from the get-go. Still others only offer franchises in non-registration states and notification states. Indeed, there are reasons, good ones for each of those or any combination thereof.
Still, there are some that work to set up a couple of foreign franchisees to show they are global and national. It's amazing really to watch how various franchisors execute their expansion strategy. Another very popular strategy is for the franchisor to set up some local franchisees and create a business model like a master franchise, then copy that model by selling master franchises in other markets.
Some franchisors sell master franchises in foreign markets or areas they do not wish to franchise themselves. Because of all the various strategies and mixing of these, you can see why there are almost as many strategies as there are franchising companies. What typically happens is a franchisor attempts to execute their franchise business plan, but then has folks and investors contact them.
The franchisor then makes deals that are worth their while and at a rapid rate. Call it controlled chaos if you will. Now from the outside looking in, it might looked normal, but believe me it isn't, no franchisor ever expands exactly how they planned from the beginning, franchising just doesn't work that way. It's like holding on to a rocket ship, it ain't easy, but believe me when I tell you, it's worth doing if you have a good concept. Think on this.
| "Lance Winslow" - Franchising Resource. If you have innovative thoughts and unique perspectives, come think with Lance; http://www.WorldThinkTank.net/. |
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