March 18, 2016

Developing Your Expansion Plan, Addressing Encroachment

Joe Lewis, Smoothie King Franchises, Inc.

For franchisors, one of the inherent conflicts in expanding your brand is the tension between optimizing your market penetration and maintaining strong relationships with your franchisees. Most franchisees want you to build brand awareness by opening new units in their market—until you open one in their “back yard.” Then your legal right to do so and your theoretical justifications for doing so go out the window, and all hell breaks loose. So how do you handle the conflicts in this situation?

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