With business loans still hard to come by, franchisors unwilling to sacrifice growth are making their systems more affordable to new owners by reducing franchise fees, offering incentives, providing in-house financing or scrutinizing their business model for savings that can be shared throughout the system.
Hand & Stone, a Hamilton, N.J.-based spa concept with eight locations in the Philadelphia area, saves each franchisee tens of thousands of dollars on average by negotiating favorable rent and cashback from the landlord for tenant improvements.
“A lot of landlords have got a lot more vacancy than they used to,” said Bob McQuillan, vice president for franchise development. “There’s not a lease that we’ve done that we haven’t received money back from the landlord.”
Photo: Curt Hudson.
Franchisors Cut Deals To Keep Growing
August 23, 2010 by Cris | 0 Comments