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Targeted Franchising

According to an article in Monday’s Wall Street Journal, some franchisors are proactively targeting certain demographics for their businesses.

One of these franchise chains is Atlanta, Ga.-based Maid Brigade, where the targeted demographic is military veterans. In fact, Maid Brigade isn’t just seeking out potential franchisees from the veteran demo, they’re also running contests to give away franchises or significantly reduce franchise fees to vets who want to open one of their

Why? As has recently been seen with several franchisors seeking a higher-quality franchisee, Maid Brigade have enrolled veterans in the past and found that they have a track record of success. As president of the company, Bart Puett, told the newspaper, "We had some veterans in the program already, and they were all successful. They have the right characteristics—they are trained on systems, they are goal setters and are hard working." In addition, veterans commonly have pensions, which they can use for financial support until the business starts to turn a profit.

Veterans aren’t the only segment of the population being targeted by franchisors looking to expand. Some seek specific cultural demographics such as Straw Hat Restaurants Inc. targeting Indian-Americans. They do so because the franchise’s CEO Jonathan Fornaci once worked in India, where he learned that “the culture fosters moral and financial support among friends and relatives”. Thus, for certain segments of franchise seekers, there might be a franchisor seeking your particular kind of expertise.

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