Innovation Helps Franchises Grow

Entrepreneur.com:

In today’s volatile economy, growing a franchise system can be tough. But some franchisors see hope in the current business climate. They offer innovative strategies that could benefit any franchisor trying to help existing franchisees succeed and attract future qualified franchisees.

Value and convenience are highly sought-after, and systems providing these attributes arguably see the best results. Yes, systems with relatively low franchise fees and startup costs are more likely to see growth, but the more expensive concepts, those with the higher build-out costs, can still tweak their systems to boost sales. And you don’t necessarily need big bucks to tap new opportunities.

Opening Doors, Lowering Costs
Consider, for example, the collapsed real estate market. Lower property values have proven to be a good thing for Jerry Laesser, vice president of marketing and franchise development of Martinizing Dry Cleaning, in Cincinnati, Ohio.

“Rents are softening up all over the country, and that was not so 24 months ago,” he says. “That saves our franchisees an additional expense,” which over the course of a 10- or 15-year lease can amount to larger savings. And in the spirit of keeping costs down, a reduced plant size lets franchisees operate in 1,600-square-foot units, translating to lower rents and cheaper build-out costs.

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