Development Strategy

Franchisors Should Evaluate Competitors on a Regular Basis

Posted by Ed Teixeira March 4, 2016

During current times, franchisors operate in a very competitive environment as they seek to attract and add qualified franchise candidates to their franchise network. As candidates look to obtain a favorable return on their franchise investment the most attractive franchise opportunities should be represented by the healthiest franchises. However, in the real world there are a number of franchise systems that don’t represent a healthy franchise system. Many of these unhealthy systems aggressively seek franchise candidates and compete for investment dollars. In order to grow their system franchisors need to offer the best opportunity and investment value to prospective franchisees. For these reasons, it’s important for franchisors to perform a competitive analysis of franchise systems that are direct and indirect competitors.

Franchisors Need to Control Their Franchisee Development Strategy

Posted by Franchise Grade Team February 26, 2016

A number of years ago, Subway founder Fred DeLuca was asked to explain his development strategy for Subway. His response was simple: “I want to be where every McDonalds is and to locate as close as possible to them because they have the best site location strategy.” Whether Fred’s comment was serious or not, one cannot question Subways success.