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Fast and Slow Growth Strategies for Franchise Expansion

Jason LeVecke

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Based in Arizona and California, Jason LeVecke serves as BIIC Solutions managing director and provides coordinated solutions that meet the needs of nonprofits and businesses. Jason LeVecke has particular experience in growth strategies that leverage the power of franchise organizations.

For franchise system owners, there are two basic routes to expansion: fast growth and slow growth. The former involves launching multiple units at the same time, while the latter focuses on manageable expansion, with each new franchise reflecting the success of the last.

The rapid growth strategy typically reflects strong consumer demand or a superior financing structure, and provides the advantage of a large, actionable database. Real-time analysis of the factors that are driving growth in specific markets and geographical locations enables a fine-tuned approach to expansion.
The downside is that multiunit operators often are not able to provide the same level of support and attention to individual franchisees as those operating within slow growth models. An additional concern is the danger of market saturation, with overextension of the brand not always apparent until sales start to decline.
Slow growth as a conscious franchise decision, rather than as a reflection of lack of marketability or sales, can benefit franchise owners. With a greater level of corporate attention provided, it is likely that the operation will enjoy maximum guidance in positioning itself for robust sales. Those that achieve “model unit” status within the existing slow growth framework may even gain leverage to accelerate expansion when the time is right.