If you have a vision of fast-tracking your business success, being a franchise Area Developer may be for you.
There are two types of Area Developers.
Area Developer Who Owns All Units
In this scenario, you’ll be a racehorse when it comes to becoming a multi-unit franchisee. You’ll start your relationship with the franchisor you select with a plan to that gives you the right and, pay attention to this word, the obligation to develop a set number of franchises, in a predetermined amount of time, in a specific market area. In addition to marketplace exclusivity, advantages often include reduced franchise fees because you are opening so many units in addition to reduced royalties because it is easier for the franchisor to work with a single owner of multiple units than with many single-unit owners.
Area Developer Who is a Franchise Owner and Seller
In this role you’ll grow an exclusive franchise territory via a combination of units you own and selling units to others. You’ll help to support the franchisees you bring into the marketplace. Advantages to this arrangement include primarily using other people’s money and management to grow the area and the ability to get a share of the royalties the franchisees you bring on board generate.
The main risks you’ll face as an area developer would result if you could not meet your contractual obligations. They include being penalized financially, losing your territory exclusivity, or having the agreement nullified.
“I help grow the Sport Clips brand in the markets I am responsible for by working with potential Team Leaders, franchisees, to bring them in to the business,” John Weber, a five territory Sport Clips’ Area Developer and owner of 51 units.
We asked John Weber (featured in photo above), who owns 51 Sport Clips locations with four additional ones scheduled to open by the end of April 2017 and is the brand’s Area Developer for Tennessee, Indiana, Kentucky, Alabama, and the Florida Panhandle, to share what his role as an Area Developer is.
“I help grow the Sport Clips brand in the markets I am responsible for by working with potential Team Leaders, franchisees, to bring them in to the business. Once we do so, we support them throughout the entire process, which includes finding the right real estate for their store and negotiating the letter of intent for the lease. Once we get the lease signed, we assist them with the design process and finding the right contractor to complete the build-out of the store. When the build-out is complete and the store is ready to open, we provide training and grand opening support, and any ongoing training to support the Team Leader, the Manager and Stylists. We also conduct success checks in all our stores and take care of anything that needs to be done to ensure the Sport Clips’ brand standards are upheld and stores are operated at the highest standards.”
To learn more about being an Area Developer and other paths you can pursue to achieve multi-unit franchise ownership, be sure to read our Top 50 Multi-Unit Franchises report at www.FranchiseBusinessReview.com. It also features advice regarding successful multi-unit franchise ownership including what to look for in a franchise from a multi-unit investment perspective, tips from multi-unit franchisees, and how to finance multi-unit expansion.