Franchising: Duplicating Business Success

StartupNation:

If you’ve started a successful business that’s expandable into new locations and markets, franchising just might be the breakout strategy you’re looking for. Franchising is an ideal path for companies that seek fast growth and it’s also a bulls-eye if you’re looking to keep the quality level and performance of each location at its best. According to Mark Siebert, CEO of iFranchise Group, a consultancy for companies interested in franchising, statistics indicate that locations operated by franchisees consistently out-perform company-owned locations in quality and revenue.

This is consistent with Stuart Mathis‘ perspective. As president of The UPS Store, he works with over 4,900 franchisees. We asked him on our radio show why UPS is utilizing franchising rather than opening company-owned stores. He confirmed that it’s entrepreneurs that make each location a success. ‘They have an energy and passion that company men just wouldn’t be able to equal.’

Franchisors are defined by 3 basic ingredients:
* the use of a common trademark;
* the provision of assistance to the franchisee;
* the collection of fees, royalties, mark-ups or other monies from the franchisees.