There are thousands of franchise options to consider, so it’s hard to figure out which options might be your best fit.
To help you better understand the franchise landscape and start narrowing down your options, this is the third of 4 videos that will break down the Spectrum of Franchising, based on the operational criteria of each category. While there are always going to be a few exceptions, the vast majority of franchises will fit into one of these four categories.
Today, let’s look at Territory servicing; Mobile Businesses
- These businesses can be run from a home office or from a small industrial office (often a staging area or a base for your staff);
- Instead of buying a franchise for a specific location, you are buying a large territory that you and your team will service. You may need a small office or warehouse as an operational base;
- Because these businesses are not location-dependent, they are usually lower-cost… Often $125,000-$250,000, with the biggest variability in price being how much territory you purchase.
How to get customers: These businesses require regular ongoing investment in marketing, which triggers customers responding and saying “I’m interested, tell me more”; you are invited to the customer where you do your needs assessment, presentation and quote.
These businesses are also easier to scale – as you add customers through marketing, you add staff; add more customers, add more staff. You’re growing your customer base without having a big rent bill.
These businesses enjoy higher profit margins because there are far lower operational costs per revenue dollar – smaller staff cost, lower rent, etc.
Examples of these businesses include residential cleaning services, painting, home improvement and elder care.
These businesses are very appealing if you have strong staffing and operations management experience, and you really want to grow something sizable. People like this type of business because of the ability to lead a team, the ability to build a strong customer base of repeat purchasers, and the ability to build strong long-term equity value.
Territory Servicing; Mobile Businesses are just one of the four structural options available. If you’re curious about exploring which category might be your best fit, I can help you focus on your best options. I’ve helped hundreds of people achieve success in franchise ownership, so I’d welcome a call to explore possibilities! Book a call now.
Originally posted on LinkedIn
