Expansion is a delicate moment for any business, whether it is a franchise or not. 

On the one hand, it means there are resources available to shoulder the process, and that's great. On the other hand, it poses risks and raises questions that are difficult to clarify without professional assistance. 

In this article, we are going to address the main headaches faced in the process of expanding a franchise. In addition, we will comment on which of our methods emerged with the intention of alleviating them. 

Main difficulties of the franchisor

• Identification of potential markets: First, to be able to identify the areas with the greatest potential for growth and success in the implementation of new units. which can lead to inappropriate location choices. 

• Competition Analysis: Second, understand the positioning of competitors and develop strategies to stand out. 

• Development of expansion strategies: Lastly, executing expansion strategies, including determining the ideal number of units to be opened, the pace of expansion and the necessary investments. 

Practically all the big franchises that we know of take the polishing of their expansion strategies very seriously. It's the best way to ensure that there won't be any significant revenue loss during the process. 

Main difficulties of the franchisee

• Selection of commercial points: Firstly, the choosing the best commercial point is the most common challenge. For this, it is necessary to consider factors such as location, target audience, daily traffic, and competition. 

• Adaptation of regional culture: In the background, we have the regional culture of the units. In cases of franchises that expand into all kinds of territories, it is common for cultural distance to merit the construction of specific adaptation strategies that guarantee positive feedback from the public.

• Continuous monitoring and adjustments: THEAnother common pain franchisee faces is tracking performance. As well as the identification of points for improvement and the implementation of actions that optimize results. As it is a basic pillar of market intelligence, crucial for long-term survival, most franchises and businesses we know adopt this philosophy of constant improvement, which requires data for decision making. 

Data is the answer 

Whether to plan, execute or monitor a franchise expansion process, the georeferenced data are the only way to gain security in decision making.

They let you know exactly: 

• where to expand
• to whom to sell 
• how to stand out 
• If it's worth it 
• If it's better to retreat 
• What is the earnings ceiling 
• And much, much more. 

However, isolated data does not make you get to the X of the question, much less in such a complex process.

That's why, from the beginning, Linkages has taken an approach that goes a little further… 

The differential that guides our entire methodology for franchise expansion

While there are difficulties specific to the moment and size of each business, there is a general difficulty shared by all: the lack of data and the difficulty interpreting them. 

There's only one thing worse than making decisions in the dark: making supposedly informed but wrong decisions source of a faulty interpretation. 

It is for this reason that our differential as a company specialized in mapping is in offering a ready-made analysis, instead of disconnected data freed to the subjective understanding of each one. 

In addition to providing tailored information that meet all stages of the expansion of a franchise, such as: 

• point of sale mapping
• Competition Analysis 
• Potential market identification
• Construction of the target audience 
• Relevant georeferenced analyzes 

We also eliminate the main latent risk in decision making, even for those who collect data professionally: the analysis.

Our experts not only collect the data you need, but perform in-depth analytics that interpret that data for you, so your focus is on making the best decisions. 

This way, you receive reports in our best direct-to-the-point style, with insights already formulated, which accompany graphics and visual elements to facilitate your understanding.

All custom-designed by our team specializing in information design: 

The rapid applicability of the data makes us a accelerator of the franchise expansion process. With Linkages, franchisors and franchisees make strategic decisions faster. 

Do you also want to be more confident when deciding the future of your business? 

Schedule a meeting with our experts.