Published in Inside Franchise Business, July 2019
Try the escalating costs of retail space for their franchise system.
Let’s imagine I am a franchisor in Australia today, in a predominantly retail business. My biggest fears are the cost of retail tenancies in shopping centres, and how we control these costs for the future. I can fuel my fear by adding in the power of the shopping centre executives to alter the retail mix. I’ll throw in some pop ups/short term rentals to darken the mood. Suddenly there’s a nightmare scenario: the changes that can be made outside of my control can drastically harm my business.
Peter Buckingham is the Managing Director of Spectrum Analysis Australia. He is a certified Management Consultant, and a Fellow of the FCA and IMC.