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With Success Behind You, Are You Ready To Expand?

Written on November 28th, 2007 by Ryan Lee in Franchising Developments.

A franchised business has a greater success rate because a franchisor perfects a product/concept and the running of the business and garners a name for itself in the market before franchising it. All the franchisee has to do is follow the proven system and add with it his hard work and business sense to get success.

When a franchisee succeeds in one place, it is quite natural that he may think of expanding his business in another part of the city or state by opening a new location. Similarly, the franchisor, after finding success in one state, will try to replicate it in another. No matter how are you going to expand your business, there are basic things that you need to keep in mind before opening a new location.

• Is your present franchise totally developed? If you are a franchisee, see whether your business is offering all the services that the franchisor offers e.g., if you are a drive-through coffee franchise, see whether you can turn yourself into a café with more sitting space. It is better to optimize the present location before branching out. If you are a franchisor, make sure you have covered all the territory presently under you before opting for another state. brandEXPANSION’s development team can help you determine whether you’re ready for this step.

• Do you have enough financial assistance? Again, if you are a franchisee, expand your franchise after you have recovered a good amount of investment from your present franchise, before taking a fresh loan to open another. Similarly, the franchisor should have enough capital to start franchising in another state where he has to begin all over again – right from registering in the state to applying for the UFOC. In addition, he has to generate his brand name in the new place and that will mean good amount of advertisement. If you need to secure additional finance, brandEXPANSION has relationships in place with preferred service providers who can help.

• Can you handle additional responsibilities? Opening a new location will mean devoting a considerable amount of time and energy. If you are already hard-pressed for both, then think twice before going for an expansion. For a franchisor, he has to see whether he has the facility to train more people and handle long-distance problems.

So, consider all these things before expanding your franchise and opening a new location. If everything is ok, then it can be truly rewarding! Many franchisors give a discount on the franchise fee, if the franchisee promises to open additional locations within a given time period while others give discounts on the second franchise fee.

The associates of brandEXPANSION can help you at every step of your franchising business, so contact them today.