WSJ:
Franchisers are becoming increasingly creative in marketing themselves.
Some are giving hefty discounts to franchise employees who want to become owners. One is introducing a “lite” version of its concept designed for those seeking a part-time franchise to augment their income. Another is offering a rare money-back guarantee.
As franchises proliferate and competition for new franchisees intensifies, franchisers are using such innovative tactics to ensure their own longevity and success.
Employee Discounts
Dwyer Group encourages workers at its various repair and maintenance franchises to eventually buy their own franchise. For example, employees of a Mr. Appliance franchise can get 10% off the initial cost of a franchise, which averages around $45,000, if they work in the business for two years and perform well. If they remain seven years, they could get 75% off the initial fee.
Money-Back Guarantee
To accelerate its expansion plans, and reduce the uncertainty of would-be franchisees about buying one of its car-painting shops, Maaco Enterprises Inc. recently introduced an extraordinary proposition: If after the first year a new franchisee hasn’t achieved a certain sales level despite having operated a “first-class” business, the company will buy the franchise back. Certain conditions apply, including using sale proceeds first to pay off loans outstanding and any money due Maaco.
Image from Stock.xchng.
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