If you are a franchisor…a new start up in the block, this advice may not be what you want to listen. I understand probably after investing a good some of money, it is not easy to accept this advice.However, it would be prudent from your side to consider this advice.
The sooner the better.
You will find most franchisors are the ones that sell 20, 30, even 50 franchise units or more in the first couple of years…and then suddenly disappear from the scene. Or, are at least so “under the radar” they don’t matter in the scheme of things. You will never find them in the top league of franchisors.
Slow And Steady Is The Way To Sell Franchises
If you’re a new franchisor, willing to learn here is my take:
Sell Your Franchise Slow and Steady
Select not more than five franchises in your first year. Successful franchise business largely depends on the ease of duplication. The better you can duplicate your business the better it will be.
In year two, award maximum 15 new franchises. The infrasructure to support the franchises need to grow alongside. You need to develop your support system at a comfortable and affordable pace. You need to appoint staffs now to look after your franchises. Your new franchisees need and want support. Provide them.
In year three, sell around 25-30 franchises.
. Maybe you will be able to get to 100 up and running franchises in the 5th year
If you do, You create a sustainable business in the years to come.
But, you might not.
Know this: If you sell franchises fast and you don’t support your franchisees won’t be happy. They may not be successful either. Depressive franchisees who are n0t making enough money will spell doom for your franchise business. Franchise sales will definitely stop. That is because prospective franchisees who are calling your current franchisees (as part of their decision making process) won’t be hearing a lot of good things from them, so they’ll go elsewhere. They will start searching for another franchise concept for sure.