A Business Model for Sales & Management Professionals
During this year, there will be many sales and management professionals that will enter into a career transition situation. Some will choose to accept a new job and some will elect to open a new business. Unfortunately, not all will realize that there are franchise opportunities available that will closely match their experience such as a Regional Developer or Area Representative franchise opportunity.
When most franchise opportunity research occurs, it’s inevitable that this research is going to result in the following business models being a part of the main stream:
- Quick Service Restaurants: This industry is not always a good fit for the sales and management professional that is in a career transition. This is a very attractive industry in franchising, but the day to day of the business model is what you have to consider.
- Personal Care: Senior care and fitness studios control this sector, but there is new competition every month it seems. In regards to the fitness studios, your location will be a major factor of your success. Again, do you have a passion for the day to day of these businesses? That’s a decision that’s very important before you “invest”. When I mention “invest”, it’s not just an initial fee. The real estate lease associated with many franchises can be quite the sting if things don’t work out.
- Children Businesses: Kids are big business and that won’t change. We can say the same for pet related businesses. But, are they a fad? That’s important in this sector. But, yet again, can you see yourself having a passion for the day to day?
What about the Regional Developer (RD) and Area Representative (AR) franchises mentioned in the beginning of this article? Let’s dive deeper into this sector. Not all RD and AR opportunities are created equal, but below is the model I favor and feel are a great fit for many sales & management professionals to consider.
In many ways, an RD or AR business operates as the “regional franchisor” of their specific region. They have a franchise agreement that includes the following obligations and multiple streams of business revenue:
OBLIGATIONS OF AN RD/AR BUSINESS
- Recruit Franchisees for their region.
- Support & Mentoring to franchisees in their region.
- Other support functions that offer multiple revenue streams for their RD/AR business.
REVENUE STREAMS OF AN RD/AR BUSINESS
- Percentage of Franchise Fee for each franchise sold in their region.
- Portion of the Royalty Income (ongoing/residual income) generated in their region.
- Other revenue streams for support functions provided to franchisees.
Why is this a good growth strategy for franchisors? They don’t have to over staff their home office with recruiters, trainers, field support staff, etc. Rather than the franchisor taking 100 percent of the franchise fee and royalties, they share in the income so they don’t have to support a larger staff and overhead. Other benefits include rapid growth and brand dominance in selected markets, without building up a large infrastructure.
Ultimately, the RD/AR business model can be a win/win for the franchisor and RD/AR. More importantly, the function of the RD/AR business is very SALES FOCUSED and that matches the experiences and core competencies of many sales and management professionals in a career transition.
Get in touch with me to learn more or if I can help you! I am very involved with our Regional Developer model on a day to day basis. If that’s not a good fit for you, let’s work together to find the best fit for your Goals, Experiences and Core Competencies.
Lisa Crowther | Franchise Development Coordinator | 888.241.4665, x 721 or firstname.lastname@example.org