If you own a mobile franchise business and wish to expand you will need to have a strategy that involves your franchisor. Additionally if you are a franchisor it is important to have some sort of policy in place in advance so that there are no hurt feelings as franchisees expand. Our company has such a policy but as per our franchisee survey less than 20% of the franchisors who participated in the Franchising.org had such a policy. I recommend that if you are a franchisee or franchisor that you take this outline below and modify it to fit your small business or franchising company and use it as a guideline for franchisee expansion decision-making. Go ahead and print this article and then sit down and modify it. Then for each number or lettered item write three or four paragraphs of what if scenarios. This will help assist in proper franchise outlet expansion while keeping peace in the franchise family. Additionally it will insure smooth system wide expansion where everyone on the team knows what to expect. This outline has been made using our franchise business model for a mobile car wash business, but it serves as an excellent starting point. FINANCING OF BUSINESS EXPANSION I. APPROVAL FROM FRANCHISOR A. Advanced Notice B. Truck And Equipment Set Up II. FINANCING A. Borrowing B. Leasing C. Charging D. Out Right Expense III. APPROVAL OF CREDIT A. Time B. Documents 1. Profit And Loss 2. Tax Returns 3. Balance Sheets 4. Bank Statements 5. Credit Card (Balance Of Account) IV. DELIVERY A. Truck B. Equipment C. Paint D. Signs E. Check Out V. FUNDING OF VENDORS |
