You are here:

Franchising/Business Structure

Advertisement


Question
Hi Sarah,

I've got a small business, it's a personal training studio. I have about 10 staff and it's doing quite well. I want to expand, and currently I have the processes and systems to open my 2nd location. I buy the building, pay it off and setup personal training for clients, I give my manager 27.5% of the net earnings and he's happy, I get a lot of freedom. Currently I only spend about 4 hours actually training clients and about 8 hours worth of meetings. My manager takes care of pretty much everything except the marketing and lead gen, which I control.

What I want to do is like what Gordon Ramsey does with his restaurants. He starts one up, puts in a manager...get's it up to speed and profitable...gives the manager a healthy percentage then moves to open another one. Everyone wins...it's not franchising...but I was wandering what this sort of business structure is called? And how it works?

Cheers
Rob

Answer
Hello,

It may sound simple but what you are doing is forming partnerships or joint ventures.

They put in the time and make regular money and when up and running they earn a % of the profit.

It would not be anything like franchising where they would pay you because in your model you are paying them, you are almost doing the total opposite of Franchising.

Good luck.

John

Franchising

All Answers


Answers by Expert:


Ask Experts

Volunteer


John Henning

Expertise

All questions relating to franchising, franchise due diligence, franchise financing, franchise matchup, finding the right franchise. With over 10 years experience in new store development & franchising, I am comfortable with answering any questions about franchising.

Experience

10+ years in new store & franchise development. Professional franchise consultant. Published author. StartupNation award winner November 2009. Entrepreneur.com Entrepreneur of the week in March 2009. Gold Star Award Winner for Entrepreneurship in January 2010.

Publications
Business Opportunities Journal: boj.com, Website Magazine, OpenAFranchise.com, eFranchiseNews.com, Entrepreneur.com & others.

Education/Credentials
Certified Franchise Consultant

Awards and Honors
StartupNation award winner November 2009. Entrepreneur.com Entrepreneur of the week in March 2009. Gold Star Award Winner for Entrepreneurship, January 2010.

©2016 About.com. All rights reserved.