When I was a kid, coming home from school with any grade below an A was, well, bad. It was also pointless to tell my dad, “But I studied!” He would calmly reply (cue deep, Midwestern voice), “That may be true, but your grade signals you still haven’t mastered the material.”
Every new year, strategic planning and forecasting efforts suddenly seem more tangible. Bets are placed. Budgets, infrastructure investments and acquisition targets are finalized.
A well-orchestrated resale program is an important component of your growth strategy. Sound counterintuitive?
Market value and power accrue to platforms of all kinds, but especially to technology platforms. Scale raises competitive barriers, and attracts participants, capital and customers. A well-managed platform also gets smarter with each bit of collected data.
In franchising, there are three influential platform types, and higher enterprise value, scale economies and competitive advantages tend to accrue to platforms. Craft your brand growth strategy with this in mind.
Why do candidates want a franchise? What are their desired outcomes? “How” things get done will evolve over their 10-plus-year license agreement. Pressure test their assumptions and beliefs to ensure their “whys” will endure.
Achieving 100 open units is the first major proof of a potentially viable—and valuable—franchise. That’s why brands race to get there fast. Then the effort shifts to opening 250 with a backlog, branching out internationally, then 500 open with a bigger backlog, and so on.
Franchisors are required to include a significant amount of information in their Franchise Disclosure Document (FDD,) which is then shared with prospective franchisees, regulators, and lenders.
How can your franchise system grow faster? Look at your unit level profit and loss statements.
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