Innovative franchisors
seeking to expand their offerings and attract a new pool of franchisees are breaking with tradition and instituting new ideas. Here are a few ideas that have proven effective for the systems that have used them to achieve specific goals as they developed:
• No franchise fees for expansion. Grow Biz, a Minneapolis-based multi-brand franchise system (now Winmark), at one time waived additional franchise fees for interested owners who qualified for expansion. Why require an additional fee from a trained, successful franchisee whose new store development brings more royalty income to the company? With these experienced, successful franchisees, the returns are high and the risk minimal.
Some franchisors, such as GNC, have discounted initial franchise fees for new franchisees in certain markets to accelerate development there. Full article.