Origin of Franchise Growth Partners
Our FGP approach arose in part for two primary reasons.
- To serve new franchisors. Former founders and CEOs of successful franchise companies who have “ridden their trails” historically are acquired and retire into the sunset. FGP has the passion to remain committed to mentoring new franchisors into regional and national brands so they too can achieve their goals and dreams.
- To encourage growth, stability and profit. New entrepreneurs unnecessarily invest huge sums of money to prepare Franchise Disclosure Documents and business operations manuals. These new franchisors become persuaded to become either miracle growth concepts, which conquer the world, or become operationally caught in a consulting process that does not generate revenue. FGP has the real life experience to “management engineer” a growing, stable and highly profitable franchise company.
“We see too many rabbits running at a franchise speed, wildly out of control, while the tortoise continues to win the race.” -Scott Simcik
FGP’s Standard of Excellence
Your franchising achievement is possible even without fast growth! Similarly, franchise concepts that achieve high growth rates do not always do well in terms of corporate profitability and franchisee satisfaction. The overall correlation between growth, corporate profitability and franchisee satisfaction is highly misunderstood by new and existing franchisors.
Many “Top Franchise Concepts” are very different and may not include well known “growth miracles” such as McDonalds, Subway and Taco Bell. These top franchise concepts do not measure themselves by the number of locations, but on the strength of franchisee unit-level economics, corporate profitability and overall relationship satisfaction. FranData research company provides statistics to reflect that 70% of approximately 3,500 registered franchisors maintain less than 50 operating franchisees.
- We see too many 100, 200, 300 franchise systems with well-known brand names, with negative balance sheets, growing bank debt, limited profitability and unhappy franchisees. These type of franchise companies can become sales focused by outselling their attrition to grow their brand. There is simply not enough royalty revenue or net profit to maintain their corporate overhead.
- We see too many franchisors who are either “sales oriented” or “operational oriented”. There is a healthy balance of both.
- We see too many franchisors who are in a “hamster wheel” and do not know how to get out. They are highly dependent on making a franchise sale each month just to cover their monthly overhead.
- We see very few franchisors whose royalty covers 100% of their monthly overhead.
- We see very few franchisors who are not dependent on making one franchise sale each month.
- We see very few with a high percentage of “healthy and connected” franchisees.
Franchise Growth Partners will deliver on its promise of excellence by showing you that being profitable as a franchisor has LESS to do with how many franchisees you have and MORE to do with your strategy, execution and financial management.
Call us today for a free consultation, as we have the passion to help you! 1-805-471-1682