Expanding a franchise’s footprint into a new state or region is always exciting. As the franchise model continues to exceed growth expectations, more franchisors may be contemplating multistate development.
It’s important to keep in mind, however, that consistency is what drives franchise value. After all, what typically attracts customers to a franchise location is an expectation of product or service uniformity. Yet even thriving franchisors may find it difficult to ensure consistency as they grow. The challenge becomes exponentially larger when franchisors expand across state or regional lines, bringing new oversight and logistical concerns into play.
To increase the odds of a successful expansion, franchisors should conduct thorough due diligence of potential challenges that could be present in new geographies. This is especially important for newer franchisors who may be laying the groundwork for future growth. As business opportunities in new states surface, it is essential to first assess whether the franchise is truly ready for a multistate presence. State-by-state issues must be evaluated alongside more regional and logistical considerations.
