If the Mathnasium Country Franchisor chooses to franchise, what should its strategy be?
The franchise strategy is divided into two parts: 1) Selling franchises, and 2) Supporting franchisees. Although the two parts are quite different, they serve a common goal – the success of the franchisees, individually and cumulatively. By selling franchises in all areas within a country where there are customers to be served, the Mathnasium Country Franchisor provides: the infrastructure to penetrate and saturate the market; the advantages of economies of scale for franchisees (example: pooled advertising and other expenses); a diverse “think tank” of franchisees who find more efficient ways to serve customers; an after-market where franchisees can sell their businesses to other franchisees who expand through acquisition. By supporting franchises a Country Franchisor ensures that franchisees in each area have the tools, training, consultation and evaluations on their performance necessary to maximize their revenues and profitability.
