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Article: Keeping an eye on build-out expenses: thousands of franchised businesses open their doors across the country each year. But the build-out process can often be a rocky road for both franchise systems and franchisees, especially when estimates and perceptions don't mirror reality.(FW FOCUS: MANAGEMENT & OPERATIONS)
- Article from:
- Franchising World
- Article date:
- April 1, 2007
- Author:
CopyrightCOPYRIGHT 2007 International Franchise Association. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The build-out of a franchised retail location involves a complex marriage of cost estimates, deadlines, orders, shipments and installations. Construction and supply costs that don't fall within projections can be especially damaging to the franchisor-franchisee relationship in the early going.
This is why it is vital that franchise companies, especially those of new and emerging concepts, do not make the mistake of underestimating the build-out costs of their retail locations. Franchising is an extremely competitive sector, with every concept looking to offer a distinct yet affordable business model. The importance of a franchise system giving an accurate ...