Smh:
What happens when a franchisor has outlets in practically every shopping centre across the nation, or a shop on every corner?
While it might appear the company has reached maturity and exhausted options for expansion, it doesn’t necessarily mean the company’s growth has to stop there.
Another option is to acquire other businesses or franchises to keep growing.
Franchise Alliance director Phil Blain calls this super franchising.
”It’s really a situation where the franchisor says, I still need growth and I can provide help and support to a variety of different businesses,” says Mr Blain.
Mr Blain was presented with this dilemma in the mid-1990s, when he was at the helm of Pets Paradise.
The pet store chain had reached 120 stores nationally but he still wanted to grow the business, so the company bought Warner Bros Studio Stores from Village Roadshow and cafe chain Billy Baxter’s.
Now, another iconic Australian franchise brand is planning to go down a similar path of expansion.
Foam and rubber retailer Clark Rubber, which currently has 86 franchised stores Australia-wide, is gearing up to reach its goal of about 120 stores.
Managing director Chris Malcolm says the company is also preparing to roll-out a new information technology system across the franchised business, which will eventually support the company’s future expansion plans.
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