Maintain your old Siemens Hipath system

Sample; Territory Reduction Policy for a Franchise Company

I propose this thought on the subject of Franchisee territory reduction based on performance for a Mobile Business Model. Please read the sample policy below as it explains the reasoning and methodologies considered to extend brand without risking underdeveloped territory. We will use a Mobile Car Wash Franchise Business for this discussion. This sample is speaking from the Operation Manual of the franchisor to the franchised unit:

If the volume of your business decreases to forty percent of your original volume, we may request that you decrease your territory. During the first four months after purchasing your franchise, your business is just really getting going and you can kind of see that your franchise is working. Any time after the four-month start up period, if your business drops to forty percent of that initially achieved volume, you are not servicing your area's client demand adequately. Let's say at the end of the four-month period you are doing ten thousand dollars a month gross revenues with your car wash truck. In later months if your volume drops to 40% of that or four thousand dollars a month, we, rather then terminate your franchise for non-compliance of our standards, which could be a leading reason for such a drop, would allow you to make your territory smaller. All without you losing your franchise.

Let's say for instance you are getting older, you love the work, you kind of want to retire but you want to go out on your car wash truck a couple of days a week. We would understand that, not a problem. But in that case we would want to decrease your territory. We would ask you, if in fact you are only going to work three days a week and you are not going to service your area's total volume, can we decrease your territory by the factor of which you no longer want to work? For instance, if you are working six days a week or five days a week and you want to just work two days a week, that is a significant drop. That means you are not getting to sixty percent of your business. Well that sixty percent of your business needs to be serviced by someone. If you were not willing to do it, we would like to take your current exclusive territory, decrease it so that someone else could have part of your area to work in or you can sell that portion to the next nearest franchisee. This only makes sense.

Now we are not going to decrease your territory without telling you or warning you or helping you if it wasn't your intention to decrease it in the first place. In other words, if you really do want to control the whole territory but you just do not want to work the truck yourself fulltime, we can train your managers for a set training fee. You can have them run the truck on the days you are not running it. You can also decrease your work load but still service your entire territory by using an independent contractor who might rent a car wash truck from you and work for you three days a week. He/she could continue to build the route and you could still keep your original customers that you love to do. We do have franchisees that think like this. They would still like to work but only on a limited basis. This is fine with us. But if you just want to do your business a little bit, then we would want to decrease your territory. Of course, we would compensate you for the decrease in area and reassign it to a new person. Or we could let you sell part of your territory to another person. We need to approve the sale or transfer. This would give part of your area to someone else and let him or her build upon that business. This arrangement would let you can keep any of the original customers that you got during the Blitz marketing mission that you wish to keep.

Percent Market Penetration

At the end of five years if you only have 1.2 percent market penetration and you are not really wanting to expand your business beyond that, we may ask you if you would not mind selling your business or decreasing your territory. Or would you consider taking on an investor who will buy a second car wash truck and be in a partnership with you to service the rest of the area's volume. Over a five-year period you should have achieved a three to five percent market penetration without too much problem. One point two percent is about the minimum that we would expect after five years. Each year consistently more and more people will know about your business. Since more people know about your business and want your services, you are going to have more potential customers. So, one point two percent market penetration over a five-year period would be kind of a dismal result. Although, if that is all you wanted out of your business, just to do it half way and work at your own pace, that would be acceptable to us. But we will advise you there are customers not getting serviced that probably want service. By this time you would already know that you are not getting to all of the customers that you want to get to. In which case you want to either add units with managers or hire independent contractors to run your truck on the days you do not want to work. We will be willing to help you with this but you have to understand that it is important to have complete market penetration. There is no reason to let would-be competition get a foothold in your area. You obviously will not be getting market penetration if you are not hitting all of the customers and if you don't service the customer "someone else will".

Now, if you lose some of your customers because something happened to the customer base in your territory like corporate relocation or downsizing, or you had a bad worker or you got injured and now you are better, we will want to go back into your territory and fix whatever was messed up. This makes sense. Obviously we want to do this. So kind of expect that if you have a problem with your business, we are going to come in and fix it with you. There may be a point where you are not going to want it fixed but we are going to come in and fix it for you anyway. We want you to be successful and the cars and customers to be serviced properly and to an adequate degree.

You may have your master franchise decide that you are not pulling your weight and they are going to come in there and help you. This usually happens after the fourth or fifth year. At which time we are going to have to ask you to either start servicing all your customers, or agree to sell part of your territory to someone else that wants to buy a franchise or to an existing franchisee that wants to add on to their territory or sell your entire operation and move on to something else. Take a profit by selling, shake hands and everyone wins. We really need to get to all of the cars and be a household name in your area. We want to be a household name in every city in the United States and later the world and your territory is not any different than anybody else's. All cities need to have complete market penetration over a five-year period. There should not be any competition remaining and if there is it is because you are not servicing your customers correctly. If you are not servicing your customers correctly we want to come in and help you fix that. If you were not willing to have us come in we would have to request that you take on a partner, buy an additional car wash truck or make your territory smaller. We can agree on something that is good for you and sell that territory to someone else with the proceeds going to you. These are all things to think about with your territory. If you are not going to work your territory then let someone else work it. Car Wash Guys must always dominate the industry.

"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs

In The News:

Undersea 'blasts' recorded at same time Russia-Germany gas pipelines damaged
Tue, 27 Sep 2022 09:39:00 +0100
Mysterious leaks in the Nord Stream gas pipe network began with "powerful subsea blasts" and may have resulted from an "act of sabotage".

Qatar 'conscripting civilians and summoning diplomats from abroad' to do World Cup security
Tue, 27 Sep 2022 11:31:00 +0100
Qatar has called up hundreds of civilians - and summoned back diplomats from overseas - for mandatory military service to operate security checkpoints at World Cup stadiums.

Eleven children among 17 killed in Russia school shooting as wounded to be taken to Moscow
Tue, 27 Sep 2022 13:15:00 +0100
More than a dozen children wounded in a school shooting in central Russia are being transferred to Moscow for further treatment.

Shakira to face trial over alleged £13m tax fraud
Tue, 27 Sep 2022 12:16:00 +0100
Shakira is set to go on trial for tax fraud after a Spanish judge approved proceedings against the pop megastar.

Lawyer facing charges in case linked to Kenya's president found dead
Tue, 27 Sep 2022 11:31:00 +0100
A lawyer facing charges at the International Criminal Court (ICC) in a previous case linked to Kenya's recently elected president has been found dead.



tikatoshop.it

Erfahrungen mit Pallhuber Wein
Agen Bola SBOBET Terpercaya

Travel in comfort and at your leisure with CT Airlink Limousine & Car Service for top quality private transportation and exceptional customer service. We operate Sedans, SUVs & Vans for CT Car Services to covering all Connecticut airports including Car Service from CT to Newark Airport , Mohegan Casino Uncasville CT, Foxwoods Casino Mashantucket CT, Manhattan Cruise Terminal NYC, Brooklyn Cruise Terminal NYC and Bayonne Cruise Terminal NJ. CT Airlink hire licensed and friendly chauffeurs who have in-depth knowledge of the Areas.

Self-Employment: Managing Your Money: Tips for Living with a Fluctuating Cash Flow (Part One)

The way you manage your money is one of the... Read More

Data Loss - Can Your Company Survive? (Most Do Not)

Data. Most people think it is a term relegated to... Read More

Choose Your Own Guru

What is a guru?A guru is a teacher. A mentor.... Read More

Shopping For a Franchise

Shopping for a franchise is easy if you know what... Read More

Hispanic Small Business Advantage

One thing I have noticed in my travels to different... Read More

Starting a Tractor Washing Business

In the heavy equipment cleaning business you can make good... Read More

Why are Reverse Mergers Often the Victims of Short Sellers?

There is a great deal of abuse going on in... Read More

Freelance Tips: How to Cope with Spring Fever When Theres Work to Be Done

We all know how glorious those first warm days of... Read More

Getting Grant Funding For Your Nonprofit Organization

Do you need grant funding for your nonprofit organization? If... Read More

Starting A Concrete Cleaning Pressure Washer Business

Concrete cleaning can be a lucrative business to start. Here... Read More

Mobile Detailing VS Fixed Site Detailers

Mobile detailers will find themselves with lots of competition even... Read More

Uncover Free Veins Of Gold By Prospecting Online Guru Newsletters (Part 1 of 2)

Incredible as it sounds, you have a goldmine of free... Read More

Concrete Cleaning Discussed at World of Concrete Expo 03

If you are in the pressure washing business and are... Read More

How to Use Graphs and Charts in Your Business Plan

Many people ask how many graphs or charts they should... Read More

California Department of Corporations Attempts to PR Their Benefits to Consumers

On Monday the Department of Corporations in California revoked franchise... Read More

Small Business Health Check-Up

If your home business is not performing the way you... Read More

Financial Fundamentals - What Every Small Business Owner Should Know!

Business owners rarely go into business to deal with the... Read More

Canon City, Colorado - Good for Small Business

Canon City, Colorado is known for it's 6 Prisons; State... Read More

Breaking The Chains!

Everyday, customers and business owners are bombarded with billboards, logos,... Read More

Four Reasons Why Small Businesses Succeed (or Fail)

The American system of business management has been admired and... Read More

25 Valuable Phone Numbers For Small Businesses Success

Starting and growing a small business can be a daunting... Read More

Do You Want Your Own Fully Programmable ERP? - Part 2

In the first article we mentioned the main characteristics that... Read More

Creating a Power Plan

Part of the power plan is making sure you have... Read More

9 Things You Must Do To Maximize Your Chances Of Obtaining A Small Business Loan

To get approval for your small business loan application, you... Read More

Find Your Niche & Follow It - Part 1

In this series of articles I'm going to show you... Read More