Planning Your Network Expansion: By Waves, Clusters And Concentric Circles!

Except for very large franchisors with significant financial and human resources, the expansion of a franchise network often poses serious challenges.

In making decisions regarding the allocation and use of its resources, a franchisor must maintain a sometimes delicate balance between its need to grow its network through the addition of new franchises and the ongoing support it must provide to all of its franchisees (and, even more so, to its new franchisees) to enable their franchised businesses to achieve their rate of growth and their goals of market penetration and financial success.

Unless the franchisor has the financial and human resources to focus on these two very different objectives (network growth and franchisee support) simultaneously, the franchisor may be faced with some difficult decisions.