Who wants to grow their business? I’m sure everybody wants that. That’s why in today’s episode of Marketing From The Trenches, we’ll get into something a little different from what we usually do. 

Usually we talk about the technical stuff and strategies for creating good campaigns or good social media strategies, however, this time around I speak with Nigell Lee, the CEO of Xpresso Delight USA. We’ll be talking about high-level strategies in terms of growing your business through franchising. We’ll discuss franchises comprehensively and how you can grow your business using this model.

If you want to know if franchising is for you, you’ll surely find out by the end of this episode. So be sure to tune in until the end.

What were the challenges you’ve encountered in taking your business from Australia to the United States? (6:07)

• Being a stranger
• Building proof of concept
• Adapting the business to a new environment
• Localizing proof of concept
• Making sure that systems and processes are always in check

What kind of business does franchising work on? (8:40)

• Franchising is for those who don’t want to take the risk
• Franchising is a good opportunity for those who want to leverage time and money
• Franchising could cover a number of different industries
• Training and support are essential for the franchisee

Reasons why people opt for franchising (9:12)

• Standard consistency
• Increase in governance

Steps to take in opening a franchise (10:34)

• Documentation (Processes, Systems)
• Get good advice on the legal aspect
• Identify whether you’d like to go just local, regional or national
• Understanding the economics and profitability of the places you’d like to saturate

Franchisees: How do you find them? (14:28)

• They need to have the experience and resources
• The initial franchisees that were signed on
• Keep the costs in mind
• Understand who your target market is
• Use 20-30% of franchisees in the same market as your benchmark in choosing franchisee candidates

Main things to look out for after starting three franchises (18:35)

• Training Modules: Improve as needed
• Back-end Support

How do you manage franchisees who don’t follow your protocols and standards? (21:36)

• Allow franchisees to understand that following the system will bring them to success
• Aim to get all franchisees to success by giving support

To franchise or not to franchise? (24:37)

• Get a lot of advice in franchising
• Understand the environment you’re in
• Build and test around 4-5 franchise units in different areas
• The importance of proof of concept

Future plans: Lessons you can learn (27:28)

• Change experiences
• Get to the top in the next 3-5 years
• Spin-off a number of different but related brands

Our Guest:

Nigell Lee is the CEO of Xpresso Delight USA. He is an expert when it comes to franchising and growing organizations through franchising and has been responsible for the growth of Xpresso Delight from a few locations in Australia to over 200 franchises all across the world.

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