Moving Company Franchising – Pros and Cons
Make sure that before you make a decision on whether or not franchising your moving company is right for you, that you acknowledge the pros and cons of both the franchiser and the franchisee. This will help you to weigh your options, and see if it is a good fit for you.
There are some very obvious advantages that go along with a moving franchise. For starters it’s great for those that want to rapidly expand their companies concept nation or worldwide. The person who purchases your franchise is the one that provides the capital for expansion. This means that your moving business can grow much larger and much faster than if it was funded through a bank loan or internally.
Multiple moving business franchises will help you dominate the market. It will saturate the areas with increased name recognition. In the United States, customer recognized brands are the ones that get a majority of the business. The more locations you have of your business, the more of a competitive advantage you hold. Franchising your moving company may also ensure that qualified managers are operating locations.
Aside from all of the wonderful things that a moving franchise can get you, there are some disadvantages on the spectrum, starting with costs.
The purchase cost of a franchise may be higher than what you may have initially expected. Not only do you have to purchase the franchise, but you also must pay management service fees. These can both rack up fairly quickly, and be a big chunk of change.
As a franchisor, you need to be aware that the franchisee can give your company a bad reputation, so the recruitment process will require an in depth and thorough process, and may require a lot of your time. All of the profits earned, or the percentage of sales, will be shared with the franchisor, which for the franchisee; can make growth a difficult process.
A moving company franchise can be sold, or managed, in the right way, if it you are diligent, experienced and prepared for growth.
Leave Your Response