Meet Your Growth Goals by Structuring Deals Realistically
We asked Brad Reed, Chief Development Officer for Captain D's, how he structures deals to provide realistic opening schedules, and how this affects his growth plans.
When we sign a franchisee agreement, we typically classify franchisees into two categories: those who have a secured site and those who do not. From there, we take a couple of different approaches outlining a realistic opening schedule that will make it most attainable for the franchisee -- as well as help us achieve our quarterly growth goals.
If the franchisee already has a site secured at the time of signing, we build a timeline of approximately a year to 15 months to develop and open that location. If the franchisee signs the agreement and doesn't have a site secured, we'll typically project about 15 to 18 months to develop and open that restaurant. These two timelines serve as a guide when we're laying out our quarterly development goals, layering in openings where they make the most sense for us to achieve our overall growth strategy goals.
Historically, our target franchisee prospects have been experienced multi-unit operators of other food concepts. We've found that these franchisees are most adaptable to our business model and are easily able to achieve success. However, we've never limited ourselves to that target prospect. In fact, more recently, we've been having a lot of success with single-unit operators who have little -- sometimes even no -- previous restaurant experience, but who possess the drive and desire to own a Captain D's and create a legacy business for their families.
Beyond experience and financial requirements, it's imperative to sign franchisees who are a cultural fit with your company and who possess the same ideals and core values. While growth numbers are an important benchmark tool, the numbers should not be your end goal. Your ultimate goal always should be finding the best franchisees for your brand, taking the time to train and develop them, and prioritizing their continued success and growth with the company. If they have a great experience from the beginning, they'll want to grow with your brand.
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