Franchising gives both entrepreneurs and franchisors the ability to grow
The world of franchising offers opportunities for franchisees to manage a broad portfolio of options while benefiting from a connection to brands that are widely known and have established customer appeal.
Most franchisees start with a single brand, while some buy in with a multi-pack of brands. There are brands that offer incentives to potential franchisees, such as lower franchise fees, or the option of less-expensive satellite locations, while others are growing at such a rapid rate that an entrepreneur’s purchasing power is increased.
According to Entrepreneur magazine, multi-unit franchisees represent 54 percent of all franchise units.
To jumpstart expansion initiatives, Sylvan is championing its SylvanSync™ system, an inclusive program designed to support students' individual learning needs with the aid of a specialized, tablet-based digital technology.
SylvanSync™ enables franchisees to open in satellite locations while their permanent location is being built. The benefit of this growth strategy allows franchisees to generate revenue ahead of the completion of their brick-and-mortar location. Franchisees are also given the option to open new centers with smaller footprints, ultimately reducing real estate fees.
“The success of our franchisees is of utmost importance, and through internal programs, we can widen their local community reach, offer exciting, innovative programs, and provide them with the opportunity to buy additional territories to surpass their growth goals,” said John McAuliffe, CFO of Sylvan Learning. “This allows us, in turn, to help our students and make services more convenient for families in expanding communities.”
To further incentivize development, Sylvan has waived the franchise fee for existing franchisees who open additional locations before June 30, 2015. Within a two-month period at the end of 2014, this stimulus program helped the Sylvan franchise development team sign 29 new territories from California through the Midwest and eastbound to Virginia.
“Our franchisees are the cornerstone of Sylvan’s success, and through strategic internal initiatives, we can continue to commit to their professional portfolios,” said Jeff Cohen, CEO of Sylvan Learning.
Plainview, N.Y.-based mobile fitness franchise GYMGUYZ is expanding at a rapid pace and offering potential franchisees a lower franchise fee if they sign on to open a minimum of three territories. Franchisees interested in a home-based business that provides personalized fitness services in the customer’s home, office or setting of choice can save $15,000 if they ink such a deal.
“We’ve been growing out of New York and into new states through several multi-unit signings,” said Josh York, founder and CEO of GYMGUYZ. “We’re in a service business and since we’re a mobile franchise, potential business owners see the benefit of buying into multiple franchise locations instead of just one territory.”
TWO MEN AND A TRUCK®, a leading moving services franchise with 360 locations across the U.S., has selected Pasadena, Calif. as the home of its new secondary corporate location. The Pasadena office will join the original corporate headquarters in Lansing, Mich. as a hub for the brand’s extensive Southern California expansion. The brand aims to open 15 additional locations in Southern California over the next few years.
As a long-term goal, the brand hopes to add 45 new locations to the entire state, while also eyeing expansion in Oregon, Washington, Nevada and Arizona.
Many TWO MEN AND A TRUCK® franchisees own multiple territories, and to help facilitate with West Coast expansion, the brand hired Matt Culter as its new West Coast Development Consultant.
Those interested in multi-unit expansion can also explore tools and networking events such as the Multi-Unit Franchising Conference in Las Vegas from April 8-10. The conference aims to provide the best platform for franchisees to learn how to grow their business.