For many brands hoping to expand, franchising is a great model. But it’s not the only (or always the best) option. We follow two similar entrepreneurs as they choose different paths to growth—one going into franchising and the other into licensing. Here’s how it worked out, and what you need to know.
STEP 1: FIND THE RIGHT WAY TO EXPAND. Upgrading from a small business to a chain is a big leap. So before choosing how a company will grow, owners should figure out their management style and ultimate goals. “We tell our clients, ‘You really don’t want to make a decision to franchise. You want to make a decision about how to run your business,’” says Mark Siebert, CEO of iFranchise Group, a consulting firm that helps small businesses take that leap. “From a business perspective, there is very little difference between establishing a good franchise program and establishing a good dealer program. The tools and the strategies are largely the same.”
Steve and Alexis Schulze of Newport Beach, Calif., were hard-core home juicers. They didn’t like the processed ingredients, additives, and sweeteners they found at health food stores and juice chains. Their personal experiments led to coconut-water-based drinks they deemed tasty enough to share with the masses, and they launched Nekter Juice Bar in Costa Mesa in October 2010. They figured affordable, locally sourced juices, smoothies, and bowls with no preservatives or refined sugars would do fairly well, and thought they might even be able to open a handful of Nekters in Southern California. The demand exceeded their expectations. “We’ve seen a seismic shift nationwide in the care people take with their mind and their body and what they put in it,” Steve says.
Soon they were expanding to Texas, Arizona, Nevada, and Colorado, all by opening company-owned units. That meant Nekter footed all the costs of building and operating a store and paying its general manager.
Brands that follow this model, like Starbucks or Chipotle, are potentially more profitable down the road, but they’re expensive to get off the ground, often necessitating taking on debt or bringing in outside investors. In 2012, the Schulzes started seriously considering another growth model: franchising. They’d be on the hook to provide operating instructions, trademarks, and ongoing support for individual entrepreneurs building and running one of their stores, but they wouldn’t have to invest any cash. In return they’d receive a monthly royalty.
Biking to the beach wasn’t a problem for Orange County, Calif., entrepreneur Don DiCostanzo—but getting back home, at the top of a steep hill, was way too tough. So he bought an electric bike. It was a revelation; pedaling it still gave him plenty of exercise, and the motor helped “flatten” the hills. Enthused, he opened an electric bike shop. But then his enthusiasm also flattened: He just didn’t love any of the bikes on the market.
Continue reading your story on the app
Continue reading your story in the magazine
Staying Ahead of Change
Yousuf Ali had a successful career in marketing until he failed to embrace new technologies. Now, as a My Eyelab franchisee, embracing forward-thinking capabilities is the key to his success.
READY FOR A BIG RETURN
The end of the pandemic is in sight, and many franchises are anticipating an explosion in business. Leaders at four franchises share how their brands are working overtime to prepare for the rush and win back coveted business.
THE CREATIVE PROCESS STARTS WITH PROCESS
My business barely survived its first few years, and I nearly crumbled under the stress.Then I learned the greatest lesson of my career, which transformed our company into the go-to apron brand for restaurants everywhere: Without process, we are nothing.
Bethenny Frankel Is a Time-management Machine
She builds multimillion-dollar brands, stars in TV shows, and vigorously defends every moment of her day. The secret? It starts with deciding what matters (and what doesn’t).
Think Like a Disruptor
If you want to shake things up, you must have a mindset that’s different from everyone else’s. Here are three ways to reshape your thinking.
Can Creativity Be Created?
Your team has big ideas. To unlock them, you must first build an environment of support and encouragement.
Managing Mental Illness Can Be a Team Effort
Like so many people—and so many entrepreneurs— my husband and business partner struggles with his mental health. I’m speaking up so others know: With the right understanding, life and business can still be good.
His Worst Five Years Were His Life's Best Gift
What is it like to build a hit business and then lose all control? The founder of Max Brenner: Chocolate by the Bald Man has a lot to say about that.
Creating Trust Where There Was None
Home renovations are full of headaches—but how do you fix an age-old industry woe? Here’s how Jean Brownhill, founder and CEO of Sweeten, built something better.
Build Lasting Partnerships
Finding trustworthy vendors and partners is key to growing your business—but it’s a challenging relationship to perfect. We asked six entrepreneurs to share their best methods.
The Next Generation Of Franchising
There are as many reasons for investing in franchises as there are franchise investors. And whether the objective is blending lifestyle with business or maximizing income, franchisers offer opportunities to match almost any motivation.
5 Inspirational Success Stories To Motivate Aspiring Franchisees
5 inspirational success stories to motivate aspiring franchisees
10 Ways To Make $1 Million
Our smart strategies will help you reach (or surpass) the seven-figure milestone.
McDonald's: Not Lovin' It
Skinny lattes, wraps, and other frustrations of McDonald's owners.
An Affordable Start
Low-cost franchise and business opportunities open avenues for entrepreneurs...
IPL 2021 : नीलामी में इन्हें किसी ने नहीं रवरीदा, लेकिन इनकी XI किसी भी टीम को टककर दे देगी
क्या फ्रेंचाइजी इन रिवलाड़ियों के हुनर को पहचानने में गलती कर गए? इसीलिए एक मजेदार रव्याल ये है कि क्यों न एक इलेवन उनकी बनाएं, जो नहीं बिके।
A Vibrant And Expanding Business Sector
Love working with kids? Then investing in a franchise or business opportunity with kids at the core could be the answer...
मनसे भिवंडी शहर अध्यक्ष सहित सचिव को 5 दिन की पुलिस हिरासत
भिवंडी शहर तथा ग्रामीण क्षेत्र में बिजली आपूर्ति करने तथा बिल वसूल करने का ठेका फ्रेंचाइजी टोरेंट पावर कंपनी को राज्य सरकार द्वारा दिया गया है।
16 Best Franchise Business Opportunities For 2021
Franchising business which was a boom in the last decade is now moving into a different dimension, A change in the market trend with the new normal and lot of changes that have happened with work from home options, people losing jobs left right and centre.
Turning The Franchise Business Back On
Globally, we have been living in unprecedented times with a future that looks shaky and uncertain at best. Never has any business experienced having to put a complete stop to their activities, and then to have to turn an entire system back on.