At ServiceBridge, we’d had the opportunity to work with franchise networks of all sizes. Some of them, such as
our friends at Critter Control; are established nationwide networks – their territories are mostly filled out, occasionally there are new locations or contracted ones, but they find themselves in control of a relatively stable network.
Other franchise networks find themselves in much more volatile times – for better or worse. For example,
Mosquito Joe –
ranked #26 on the Entrepreneur Franchise 500 list – has been in existence for less than a decade. From 2015 to 2017, they’ve grown from 14 to 225 franchisees –
an astounding 1,026.7% growth rate; a growth rate that only the hottest technology startups of the world might be able to compete with.
Other franchise networks find themselves less fortunate.
BrickKicker Home Inspection is a prime example. In 2007, BrickKicker had about 200 franchisees in the United States.
Just ten years later, they sit at 40 locations nationwide. Many of the franchise networks that have shrunk in the past ten years saw their business severely impacted by the 2008 Market Crash, and have yet to see recovery.
AndyOnCall is another franchise network that has seen a significant contraction in the past decade – from 55 units in 2007, to 35 units today.
In looking at each of these franchise networks –
what can we learn about creating a growing network; and avoiding a contracting franchise network?