The best deal in franchising for entrepreneurial entrepreneurs!
By Andy Cheetham
Most new franchisors would consider launching a franchise pilot scheme. It might be called a template franchise, a test franchise or similar but they all mean the same thing. It’s the new franchisors way of finally proving the model before it goes live.
A genuine 3rd party
Using a genuine third party adds credibility that the business can be run in the hands of someone else. Sometimes if the franchisor is essentially a small independent business it is the skills of the founders that have got them there. So when they consider franchising it’s important to prove that the business can be replicated by a “regular Joe”.
What does a pilot franchisee pay?
A pilot franchisee gets the franchise for free, but they usually pay their own direct costs. This is a fantastic deal for a pilot franchise owner because they get immediate equity value in the franchise. As a result it is a valuable asset that can be sold on at a future date. Occasionally though there might be a restriction that it can’t be sold for a period of time to prevent someone literally just flipping it!
What is the pilot franchisees role?
If you are lucky enough to be awarded a pilot franchise then don’t expect it to be a finished article. Your role is to assist in the final decisions that need to be made to launch the franchise. So depending on how you, or any other pilots do you’ll help the management team decide on royalty levels, territory sizes, marketing and all manner of things. That’s why you get the franchise for free. It’s your input and time that is the exchange.
What pilot franchises are available at the moment?
This challenger brand is a business transfer franchise, sometimes called a business broker franchise and they are trailing their franchise now.
Contact them and see if they need anymore pilot input.