BrandOne

Sponsored Content | Brand Spotlight Partner What's This?

The 5 Attributes of Franchises Growing with Velocity Some franchise concepts can amplify growth with the right attributes. Learn how to spot them.

Courtesy of The Lash Lounge
The Lash Lounge

With over 4,000 operating franchise concepts in North America, finding rapid growth concepts can be a challenge, but not impossible.

Growth with velocity means there are external and internal attributes of the concept impelling it forward and amplifying growth at the unit level – without your direct involvement. We call these attributes the "5 Mechanics of Scale" and Franchisors whose concepts can grow with velocity have some combination of them.

The 5 Mechanics of Scale

1. Market Potential:

  • Size - Large consumer pool.
  • Product/service demand - Necessary, not discretionary.
  • Competitive climate - Few or no recognized brands.

2. Industry Growth Path:

Where is the category or industry on its growth path - to grow with velocity, it is a developing, not mature category.

3. Franchise Operating Model:

  • Low initial and ongoing operating costs.
  • Manager-run structure.
  • Low inventory; low staff needs.
  • Loose real estate needs.
  • Your role as a franchisee to manage your manager who in turn manages the systems and the operation. You focus on overall business growth.
  • If available, minimum 6-figure EBITDA (earnings before interest, taxes, depreciation and amortization).

4. Precise Operating Systems:

  • Operations dependent on systems which allow for multi-unit growth.
  • Simplicity is key.

5. Strong Franchise Leadership:

  • A deep bench of proven franchise expertise and focus.

We are looking for the conditions to create steep ramp, strong, amplified unit economics over the long term and rapid scale, meaning additional unit opportunities.

And, if possible, a concept that's first, second or third to market. It also doesn't quite matter what product, service or industry we're talking about. If it fits this model, it gets bubbled to the top of our list!

The 5 Mechanics of Scale
Image credit: Courtesy of BrandOne

Example of Growth with Velocity

Although it may sound surprising The Lash Lounge meets our 5 Mechanics of Scale. Eye beauty is something women have always done throughout history. The Lash Lounge's process for applying semi-permanent lash extensions transforms women's appearance and dramatically reduces time and inconsistency of the daily beauty routine. Those who try it, can't go back to the old way.

Here's how it matches up to our 5 Mechanics of Scale.

1. Market Potential.

Market: Women. A service crossing cultural, generational and socio-economic lines.

Demand: Deemed "necessary."

Competitive Climate: No immediately recognized breakout brand leader.

2. Industry Growth Path.

Market still learning about this as a service. Those that do become evangelists.

3 Franchise Operating Model.

  • Low initial and ongoing operating costs.
  • Manager-run structure.
  • Low inventory; low staff needs.
  • Simple real estate and facility needs.
  • 6-figure EBITDA.

4. Precise Operating Systems.

As a developing market, consistency and precision among independents vary widely. Anna Phillips, CEO of The Lash Lounge, has perfected the operational aspects to balance consistent exceptional customer experiences with efficient labor and customer flow.

5. Strong Franchise Leadership.

Franworth, a leading franchise incubation firm, has invested capital and management to accelerate growth while meeting the needs of the system.

Looking just beyond the end product or services and applying the 5 Mechanics of Scale you can find many opportunities with inordinate growth velocity.

Click here to learn more about The Lash Lounge franchise.

Click here to learn more about BrandONE Franchise Development.

Editor's Pick

Related Topics

Business News

Former Pediatrics Professor Donates $1 Billion, Makes Albert Einstein College of Medicine Tuition-Free

Dr. Ruth Gottesman's husband left her $1 billion in Berkshire Hathaway stock with the following instructions: "Do whatever you think is right with it."

Science & Technology

These Are the Top 10 Threats From Artificial Intelligence

The new book, "The Wolf Is At The Door," breaks down the most pressing problems that AI presents to the world we live in.

Employee Experience & Recruiting

How to Take the Stress Out of the Hiring Process

CandidateView helps hiring managers avoid an avalanche of resumes with an AI-powered video solution.

Leadership

Earning Other People's Respect Comes Down to These 3 Things

Respect at work doesn't automatically come with a fancy job title, according to the new book, "Stop the Shift Show."