Buying a Franchise Series: How Scalable Is the Business Model?
How far can you grow your franchise?
When starting a franchise, scalability may not be something top of mind for new business owners, whether you plan to remain as a single unit operator or not, it’s important to research options at the due diligence phase, in case this is something you would like to pursue later on.
Multi-unit, bricks and mortar ownership
Growing through a multi-unit method is a great way to grow your business. Though it can be expensive to build and open additional sites, and you will always be restricted by how much inventory you can have on-hand, and how many staff you can employ within four walls.
While you can have the power of well-known national (and international) brands, this can also be a drawback. Will you be offered the first option to purchase a nearby store (new or existing)? Or are there already that many in your area – that it is highly unlikely any new ones will come up for sale? If you do want to grow and become a multi-unit franchisee, waiting on the chance and hoping that an existing franchise owner will sell their business is not a guaranteed growth strategy.
Service growth potential
If you are looking at a ‘man-in-a-van’ style franchise, what is the potential across industries and demographics that you can offer your services too? Is it quite narrow in that the service is unique (think pool cleaning) where the majority of customers are individuals with a pool and possibly very few commercial clients?
Or do you provide services that can be offered directly to consumers as well as businesses across a majority of industries?
Large or multiple territories
How is the territory potential calculated? And is it possible to engage employees and contractors to grow your business? And, if you want to grow even further, are there opportunities to expand your current territory, or purchase additional ones?
The Top Snap franchise model is incredibly scalable; the products and services we provide can be promoted to individuals, small businesses and across multiple industries. While allowing owners to engage contractors, expand or purchase additional territories, along with the tools, support and training to grow their business from day one.
To find out more about the Top Snap model, contact us today.