Table of Contents
There are many ways a franchisor may seek to expand their brand. The most obvious way is to expand the franchise business by recruiting more franchisees. However, there are other indicators of success than the number of units your brand has. There may be alternative methods of growth that are equally effective for your franchised business. This article will explain five methods franchisors can use to grow their franchises effectively.
1. Additional Franchises
Expanding your franchise network by adding more franchisees and units to your system is the most overt way to grow your franchise.
When expanding your network, carefully consider locations and new markets. If you want to find more franchisees and expand into new locations, conduct market research to determine whether expanding into that particular area will be a good idea. Opening a new location does not guarantee success.
Also, expanding your brand requires expanding resources and administrative work, and increasing the size of your franchise network may not always be the most effective way to grow your brand. Before adding additional units, consider whether your brand is in a position to expand.
2. Franchise Brand Building
As a franchisor, your brand is a large part of your business’s value. Just as you started your franchise with a proven business model and successful brand, you should continue to work on this and build its reputation.
Franchising increases your market reach and expands your brand into new locations. However, rather than continually extending your brand by adding new units, bringing more value to your customers can expand your brand’s reach within existing locations.
Discover the key legal and commercial issues to consider when buying a franchise.
Use your existing markets first. For this reason, consider implementing single-unit franchise agreements before introducing more developed franchise agreements, such as multi-unit or master agreements.
Continue reading this article below the formCall 0808 196 8584 for urgent assistance.
Otherwise, complete this form and we will contact you within one business day.
3. Customer Experience
Ensure positive customer experiences through the training and support you offer your franchisees. Create robust customer service policies that establish customer service relationships. Your customers can be valuable sources of marketing.
4. Franchise Marketing
Marketing strategies can increase your brand’s reach and encourage more customers to flock to your franchisees.
The correct marketing format for your business can depend on your customer base and those you wish to attract. Perhaps social media marketing and establishing a brand presence on social media would work well for your business. Maybe traditional marketing formats, such as flyers or posters, would work well too.
Your choice depends on your budget and the customers you want. A successful marketing campaign can build brand awareness and reputation, increasing sales.
5. Continuing Development
Assess your franchise’s systems and business model and consider its scalability. Throughout your franchise journey, you should continually assess your market position and innovate new products and services. It is important to develop to keep up with the ever-evolving marketplace. Expansion involves not only geographical or customer-based development but also increasing the number of products and services you offer.
Another way to develop your brand is to invest in expert advice or technology that can improve the operation of your franchise network and increase sales. Also, building your franchise community is a great way to generate new ideas and innovate within your franchise. Gather your franchisees for conferences and networking events where they help each other grow by sharing their tips and development strategies.
Your franchisors understand your brand very well because they work within it, on the ground. Tap into this source of expertise. They may want to share their creative ideas with you.
Key Takeaways
Growing a franchise involves establishing additional units and creating a more valuable brand that continually develops and delivers more value to your customers. This article has covered five methods to grow your business and franchise network. These include:
- opening additional franchises;
- building your brand in existing locations;
- ensuring positive customer experiences;
- marketing campaigns; and
- continually developing your products and services.
Remember that significant business growth is not always essential. If you are happy with your brand’s position, continue what you are doing. A bigger brand requires more time investment, which can mean that business mistakes have a more significant impact, and the costs associated with your franchise network will likely be higher. If you want to grow your franchise network, start from the inside out.
If you require legal assistance while growing your franchise, LegalVision’s experienced franchise lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.
We appreciate your feedback – your submission has been successfully received.
