Franchisors Are Breaking Old Standards

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:

Some franchisors, such as GNC, have discounted initial franchise fees for new franchisees in certain markets to accelerate development there. In 2008, Papa John's Pizza was targeting experienced franchise operators with "no franchise fee" required in six of its markets. Merle Norman Cosmetics, manufacturer and retail franchisor of skin care products, charges no initial franchise fees or royalties to its franchise operators. The 79-year-old company has built a successful business model for 2,000-plus franchisee units and for the company.

This is an excerpt from my book, "Grow to Greatness: How to build a world-class franchise system faster." Order copies at www.franchiseupdate.com/magazine/growtogreatness/

Related Stories