Franchises are everywhere! Is it right for you?
If you are sure that franchising is the right path forward for you, you still have to approach the undertaking with a well-thought-out franchise growth strategy.
Here are five key elements that you should implement in your franchise growth strategy:
While franchises in general outperform other businesses, some franchises and some franchise industries outperform even the overall franchise market. Quick-service restaurant (QSR) franchises, like Hot Dog on a Stick, are a good example.
Hot Dog on a Stick has been a mainstay at beaches, county fairs, carnivals, and shopping malls for over 70 years, and its story of franchise growth continues. The combination of high-quality product, service with a smile, and innovative advertising has made Hot Dog on a Stick a reliably solid franchise in which to invest.
Once you have selected a promising industry and a proven franchise brand with a large, loyal customer base that you feel comfortable managing, the next step is to get your financing in order.
Hot Dog on a Stick, for example, has a very low franchise fee of $25,000. In addition to this, you would need to arrange funding for the building, equipment, initial inventory, hiring and training staff, and an advertising campaign. There are many financing options available to well-qualified buyers.
Your franchise unit’s potential will largely be determined by its location, so you will want to get advice from your franchise, other franchisees managing the same brand, and local real estate agents on where it will be best to locate.
With Hot Dog on a Stick, you will need about 600 to 1,200 square feet of space in a population center at least 60,000 strong and with a median household income of $40,000 or above. You want plenty of both vehicle and foot traffic. Recommended locations include malls, strip malls, plazas, airports, movie theaters, college campuses, military bases, and high-volume grocery stores.
Even with a great franchise, industry, and location, your business will not run without skilled, reliable workers. First, you will need to get acclimated via training the franchise provides and be ready to turn to ongoing support networks.
Second, by carefully selecting your employees and giving them full training, advancement opportunities, and fair compensation, you enable your business to thrive and grow.
From the beginning, have a long-range franchise growth strategy. Once your first unit reaches its potential, you can add new units with relatively little additional training and extra managerial staff.
Some franchises offer discounts to multi-unit owners and even give them exclusive rights within a defined geographical area. If you can manage one unit, you can likely handle at least three or four.