As you know, an Area Development package can cost hundreds of thousand of dollars but, for a limited time, we are giving ours away to the first qualified franchisee in a new approved territory. Now you may think that is crazy, but here is our logic.
We are a relatively new franchise and even though we’ve been in business for eighteen years and have a great concept and a product that is needed in every home and office, it is still hard to build momentum in the beginning.
You see, our greatest attribute is also our greatest obstacle to overcome. We have a hub and spoke business model, which means that the individual franchisees don’t have to purchase or allocate space for expensive equipment or order and stock materials; their orders are transmitted over the Internet to the production facility (the hub) where most of the work is done for them. This gives us economies of scale and a competitive advantage that can’t be beat. It is a very attractive feature for potential franchisees, but initially a burden for corporate. It requires our going into an unfamiliar area and staffing a hub with only initially one or two units, which would not be economically feasible.
However if a franchisee opens a unit(s) in a new territory they already know that market's demographics, buying patterns, tastes, etc and, since they have already made their initial investment, it would be relatively easy for them to be the hub operator as well. We would provide additional training so that they are proficient and it will give them the incentive to promote and open more units since the hub is a separate profit center itself. They will receive 100% of the proceeds from the hub's operation and of course they would also receive a commission for each referral that we approved and accepted as a franchisee. We see it as a win-win situation, what do you think? Maybe it’s not so crazy after all!
Talk to us if this package is of interest to you!