{"id":840,"date":"2017-01-11T01:45:27","date_gmt":"2017-01-11T01:45:27","guid":{"rendered":"https:\/\/thefranchisecourier.com\/?p=840"},"modified":"2017-01-11T01:59:09","modified_gmt":"2017-01-11T01:59:09","slug":"leveraging-franchising-to-sell-technology","status":"publish","type":"post","link":"https:\/\/thefranchisecourier.com\/leveraging-franchising-to-sell-technology\/","title":{"rendered":"Leveraging Franchising to Sell Technology"},"content":{"rendered":"

Leveraging Franchising to Sell Technology<\/span><\/h2>\n

Most segments of technology are on the rise\u2026.unless your technology happens to be something like a payphone booth.\u00a0 If the market you are in is growing and the business needs distribution, many times a franchise system is one of the quickest and most efficient ways to develop distribution.\u00a0 With the growth in technology and opportunity for expansion this translates to the franchise opportunity.<\/span><\/p>\n

From a franchise perspective, the business model seems appealing for a variety of reasons:<\/span>\u00a0<\/span><\/strong><\/p>\n

1. If the home-based model could work, the investment range would be extremely attractive.\u00a0 We generate a significant volume of leads every month primarily through the Internet, the large majority of these leads looking to invest in a franchise have less than $50k in cash.\u00a0 Although financing opens up the investment range for these candidates, a low investment business always has higher volumes of candidates to present to and ultimately close.\u00a0<\/span><\/p>\n

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2. Residual revenues are always at the top of the list being one of the primary drivers for any franchise or business investor and if the model offered here could be structured in a format that did lend itself to a franchisee building that residual revenue model, franchisees would have an opportunity to build an income stream which would in turn tie them more tightly to the franchisor and also make the system more attractive to prospective franchise buyers.\u00a0<\/span><\/p>\n

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3. The typical franchisee has changed over the last ten years.\u00a0 With a transition in the overall job market, the six figure W-2 positions are either gone or in short supply which has pushed higher qualified, well-educated traditionally \u201cwhite collar\u201d people into business ownership.\u00a0 This profile candidate generally makes a great fit for franchising if they haven\u2019t owned and operated a business in the past.\u00a0 They also understand systems, structure and the value of a validated business model.\u00a0 These candidates tend to be interested in professional services and businesses that might be more \u201coffice setting\u201d oriented as opposed to flipping burgers.<\/span><\/p>\n

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4. Technology is hot.\u00a0 Everyone wants to be involved in a high growth market segment and although the tech-services segment of franchising has grown pretty significantly across a variety of segments for some time, there still are many categories that haven\u2019t been covered yet, Entrepreneur walks through some of these here:\u00a0 https:\/\/www.entrepreneur.com\/slideshow\/217857<\/span><\/a><\/strong><\/span><\/p>\n

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5. With the transition to virtual cloud computing, there has also been a transition to virtual businesses.\u00a0 Better technology and better systems along with a transition in the perception of home-based businesses have allowed people to build big businesses from home office locations.\u00a0 The home-based model is attractive from a lifestyle and profit margin standpoint making the potential franchise offering appealing as well.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Big picture, the opportunity is there for more growth through a franchise system and the channel seems to continue to prove to be viable to expand the sales network with vested, dedicated owner operators.\u00a0 All customer support, tech, delivery and management should come from corporate.\u00a0 WSI did this well (http:\/\/www.wsicorporate.com<\/span><\/a><\/strong> ) \u2013 they sold over 5,000 franchises to develop their distribution network which in their case was selling digital marketing services, web development, etc.\u00a0 Franchisees paid a fee of $49,500 for the rights to a territory where they sold the services and represented the brand in their market.\u00a0 WSI corporate from Toronto delivered the services and provided the back end of the delivery.\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The franchise model needs to be put together in a way where there could be additional support beyond just access to the technology and products to be sold in order for this to be attractive as a business model.\u00a0 Given the appropriate structure and business model, franchising can be an extremely effective way to develop a distribution network for technology sales.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Leveraging Franchising to Sell Technology Most segments of technology are on the rise\u2026.unless your technology happens to be something like a payphone booth.\u00a0 If the market you are in is growing and the business needs distribution, many times a franchise system is one of the quickest and most efficient ways to develop distribution.\u00a0 With the<\/p>\n","protected":false},"author":1,"featured_media":842,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_jetpack_memberships_contains_paid_content":false},"categories":[24,23,21],"tags":[213,214,78,210,212,211],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/thefranchisecourier.com\/wp-content\/uploads\/2017\/01\/Technology-Franchising-.jpg","_links":{"self":[{"href":"https:\/\/thefranchisecourier.com\/wp-json\/wp\/v2\/posts\/840"}],"collection":[{"href":"https:\/\/thefranchisecourier.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thefranchisecourier.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thefranchisecourier.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thefranchisecourier.com\/wp-json\/wp\/v2\/comments?post=840"}],"version-history":[{"count":0,"href":"https:\/\/thefranchisecourier.com\/wp-json\/wp\/v2\/posts\/840\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thefranchisecourier.com\/wp-json\/wp\/v2\/media\/842"}],"wp:attachment":[{"href":"https:\/\/thefranchisecourier.com\/wp-json\/wp\/v2\/media?parent=840"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thefranchisecourier.com\/wp-json\/wp\/v2\/categories?post=840"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thefranchisecourier.com\/wp-json\/wp\/v2\/tags?post=840"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}