Why Small Franchise Systems Struggle to Scale Beyond Their First 5–10 Locations: Building The Infrastructure Required to Move from an Emerging Franchise to A Scalable Organization

David Pinto

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Why Small Franchise Systems Struggle to Scale Beyond Their First 5–10 Locations: Building The Infrastructure Required to Move from an Emerging Franchise to A Scalable Organization

David Pinto

Subject area: Management and Commerce · Area of research: Technology

Abstract

Reaching the first few franchise locations is an important milestone for any emerging franchisor. It shows that the original concept can attract other operators, function outside the founder’s daily control, and be repeated in more than one market. The harder stage often begins after that proof. A brand may open five, seven, or ten units and then discover that twenty-five, fifty, or one hundred units require a different organization (International Franchise Association [IFA] & FRANdata, 2022). The constraint is no longer franchise sales alone. It is whether the company can support growth. Across industries, the same pattern appears: the practices that sustain five locations do not automatically sustain fifty.

References

[1] Disclosure Requirements and Prohibitions Concerning Franchising, 16 C.F.R. Part 436 (2007).

[2] International Franchise Association & FRANdata. (2022). 2022 franchising economic outlook. International Franchise Association. International Franchise Association

[3] U.S. Small Business Administration, Office of Advocacy. (2022). Frequently asked questions about small business, 2022. U.S. Small Business Administration

How to cite this paper

David Pinto "Why Small Franchise Systems Struggle to Scale Beyond Their First 5–10 Locations: Building The Infrastructure Required to Move from an Emerging Franchise to A Scalable Organization" Iconic Research And Engineering Journals Volume 7 Issue 6 2023 Page 693-694

David Pinto "Why Small Franchise Systems Struggle to Scale Beyond Their First 5–10 Locations: Building The Infrastructure Required to Move from an Emerging Franchise to A Scalable Organization" Iconic Research And Engineering Journals, vol. 7, no. 6, Dec. 2023

David Pinto (2023). Why Small Franchise Systems Struggle to Scale Beyond Their First 5–10 Locations: Building The Infrastructure Required to Move from an Emerging Franchise to A Scalable Organization. Iconic Research And Engineering Journals, 7(6).

David Pinto "Why Small Franchise Systems Struggle to Scale Beyond Their First 5–10 Locations: Building The Infrastructure Required to Move from an Emerging Franchise to A Scalable Organization" Iconic Research And Engineering Journals, vol. 7, no. 6, Dec. 2023.

@article{1723161,
      author = {David Pinto},
      title = {Why Small Franchise Systems Struggle to Scale Beyond Their First 5–10 Locations: Building The Infrastructure Required to Move from an Emerging Franchise to A Scalable Organization},
      journal = {Iconic Research And Engineering Journals},
      year = {2023},
      volume = {7},
      number = {6},
      pages = {693-694},
      issn = {2456-8880},
      url = {https://www.irejournals.com/formatedpaper/1723161.pdf},
      abstract = {Reaching the first few franchise locations is an important milestone for any emerging franchisor. It shows that the original concept can attract other operators, function outside the founder’s daily control, and be repeated in more than one market. The harder stage often begins after that proof. A brand may open five, seven, or ten units and then discover that twenty-five, fifty, or one hundred units require a different organization (International Franchise Association [IFA] & FRANdata, 2022).

The constraint is no longer franchise sales alone. It is whether the company can support growth. Across industries, the same pattern appears: the practices that sustain five locations do not automatically sustain fifty.},
      month = {December},
  }