As specialists in strategic planning, the iFranchise Group understands the issues faced by manufacturers when deciding whether the addition of a franchise channel (or the conversion of a dealer/distributor channel to franchising) is appropriate.
One of the biggest issues concerning the manufacturer who is considering franchising is that of Channel Conflict. Clearly, franchising is not something that can be entered into lightly, especially when existing channels are successfully providing market penetration.
At the same time, manufacturers have found that franchising can provide two important elements that dealer channels may lack: increased control of unit operations (and the brand association) and an ability to generate fees for the services that many dealer organizations are forced to give away. Moreover, the increased control provided by franchising can often lead to improved unit performance (and the associated improvements in sales).
Having completed an exhaustive analysis of this subject for a Fortune 500 manufacturer recently and having worked on numerous similar projects spanning the last decade, the iFranchise Group understands the issues that must be addressed. While it is inappropriate to publish the results of these engagements, we are happy to discuss the general parameters that manufacturers should examine in making these decisions.
During the course of their careers, members of the iFranchise Group have developed extensive expertise in the area of Dealer Conversion, as well as a proprietary process for facilitating this type of change. The iFranchise Change Facilitation Process has a demonstrated track record of success at converting dealers and distributors to franchises or other relationships offering “higher levels of control.” We are happy to provide a PowerPoint Presentation illustrating this process to qualified companies.
iFranchise Group can also provide consulting services to companies who are exploring alternate expansion strategies — from licensing programs, to dealer networks, and other third party distribution arrangements, our consultants have the expertise necessary to provide the proper guidance, no matter the strategic direction undertaken.
Call 708-957-2300 and ask about our Dealer Conversion Services or other non-franchise expansion and strategic services.