Franchise Support and Management Business Franchise Free eBook PDF File Download

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Franchise Support and Management

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One way to get an indication of the overall health of the system is this telling statistic: the number of transfers and unit closures that the system experienced in a year. In 2005, 890 stores, over 11%, were transferred to new owners. This same year, another 100 stores simply cancelled or terminated their franchise agreement. And of those franchise owners we contacted, approximately 30% plan on selling their stores in the next twelve months. These numbers concern us a bit but are most likely a result of the firm’s rapid expansion over the last several years. First, it is clear that several of the new units just have not reached profitability either due to their location or the quality of the franchise management. Secondly, the initial wave of franchise growth often attracts franchise owners who

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