TRG Media

 THE RIDDIOUGH GROUP Launches New Franchise Growth Strategies

 

Ashburn, VA July 9, 2012…Dr. Michael (Mick) Riddiough, a veteran franchise sales executive, recently launched a new consulting group, The Riddiough Group (TRG), designed to help U.S. franchise companies implement new growth strategies. TRG provides six types of services, utilizing networks of experienced franchise professionals, ranging from outsourced sales, new marketing strategies, area development programs, “leased” executives, franchise sales training, and general consulting.

Riddiough states, “The U.S. Franchise Industry has been a major source of creative business applications for 6 decades. Today, 750,000 franchised business establishments employ 8.1 million people and account for a $461 billion contribution to the US’s GDP. While studies show a slight ‘up tic’ in GDP contributions in 2012, the total number of establishments is down and employment has been stagnant since 2008. (http://www.franchise.org/2012forecast.aspx)

He continues, “The current economic environment seriously challenges franchise companies to find new growth strategies to capture greater market share.  There are currently at least 2,900 franchise companies in the U.S. today, and most are NOT experiencing new franchise growth. The old business adage of “Grow or Die” has become a mission statement for many U.S. franchise companies.”

Qualified new franchise owners are hard to find. Mergers and acquisitions may be on the increase within this large, innovative, entrepreneurial industry. “Standing still” in today’s market is tantamount of slipping backwards.

Riddiough’s concern is that unless today’s franchisors find new ways of attracting qualified people to build their respective businesses, we will see a major shrinkage in this powerful segment of our economy. And, that would be a tremendous loss to our country. TRG’s services are designed to help stagnant companies overcome such growth issues as:

  • Finding Start-up Capital

Traditional commercial lending sources, as well as the Small Business Administration, are not very helpful these days. The “lending gap” between what can happen and what is happening is estimated by some to be as much as $2 billion and costs the economy up to 10,000 new franchise establishments and 94,000 jobs annually. Innovative lending companies are trying to fill the gap. When possible, potential franchisees are using self-directed 401K roll over (and similar) mechanisms to fund their start-ups.

Finding qualified individuals to own and operate a franchised business has become a notable challenge. FEAR of the unknown is the biggest obstacle. Lead generate programs MUST be highly targeted in today’s market. There is plenty of money “stuck” in potential investors’ retirement and savings accounts. Gaining access to these funds requires innovative marketing strategies.

Many franchise companies have “emptied” their internal sales capacities, and as a result, they are not very good at either finding or converting new leads into new franchise owners. Instead, they have relied on outside franchise brokers to find their leads, and now those brokers have become expensive.

Due to uncertainty in the marketplace, many franchise companies are hesitant to hire highly competent, highly paid, experienced executives. As a result, some company’s management teams are not operating at full capacity, in spite of the availability of proven, competent executives. These “holes” in executive teams leads to a vicious, downward spiral in many companies ability to grow.

These programs are designed to help companies “grow faster” by awarding development rights to qualified individuals for specific geographies, either domestic or foreign. When implemented properly, these programs can greatly enhance a franchise company’s growth. However, when implemented improperly, area development programs create a “boatload” of troubles for the franchisor.

  • International Expansion Issues

Smaller franchise companies have a tough time expanding internationally, because they do not have the capital, brand name, and personnel to gain traction in bigger foreign markets. Plus, they risk losing control of their brand and their business in a foreign market.  New international development strategies can be implemented to help smaller franchise companies grow in foreign markets, with due caution.

The Riddiough Group’s Solutions

On a consultative and/or outsourced basis, TRG creates effective lead generation programs, sells the company’s franchises on an “outsourced” basis, “leases” executives for short term management projects, recruits and trains internal sales and marketing teams, advises on a variety of growth-related topics, e.g. international growth opportunities, merger and acquisition options, etc.

About THE RIDDIOUGH GROUP

Dr. Michael A. (Mick) Riddiough has been involved with franchising since 1984, serving as Sr. VP for World Wide Development for two well-known franchise companies. He has provided a wide variety of executive, sales, and marketing services to several franchise companies of all sizes. He founded The Riddiough Group utilizing a network of proven, free-lance senior executives each of whom has at least a decade of franchising experience, many with two-three decades. The company’s services focus primarily on franchise growth, but it also has access to very senior money & business managers, accountants, operations officers, procurement experts, personnel managers, franchisee relationship leaders, etc.

Dr. Riddiough can be contacted at 336-575-9585, mick@theriddioughgroup.com, or www.theriddioughgroup.com