Smart Franchisees Think Twice About Discounted Fees

SYS-CON Media:

While many franchisors discount their fees and offer money-back guarantees to attract new franchisees in the economic downturn, Interstate Batteries Franchise and Development, the franchisor of Interstate All Battery Center (IABC), is instead investing in infrastructure to aid franchisees’ long-term success.

Interstate All Battery Center recently moved their training courses to its new multi-million dollar facility near its Dallas home, where experts educate new franchisees and store managers about the latest updates in power solution technology, battery building, point-of-sale tools and recently enhanced e-commerce features.

“Discounting sends a strong negative message that makes franchisors seem desperate,” said Eric Stites, President of Franchise Business Review. He compares the effects of discounting franchises to those of buying or leasing a car: the buyer will ultimately end up paying more than the original sticker price. “IABC goes about franchising the right way and continues to see high franchisee satisfaction at full cost,” said Stites.

He cautions potential franchisees to look at “the bigger picture” when it comes to choosing the best franchise fit. He urges prospects to conduct their own research prior to any commitments, and says invaluable tools such as training and support should not be compromised in exchange for the reduced franchise fees.

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