Lapels Dry Cleaning, a chain of over 70 franchised outlets by Hanover, Massachusetts based franchisor Next Step Franchising has launched an area representation multiunit franchise model to help it accelerate franchise sales throughout the United States.
Lapels development agents (DA), or what the industry calls area representatives, sell, train and support franchisees within their contracted territory for a piece of the franchisee’s fees and royalty payments. “This will include a share in the initial franchise fees, royalty stream and training income,” explained Kevin Dubois, CEO of Lapels Dry Cleaning.
Lapels Dry Cleaning is also launching a hub and spoke model. A Lapels dry cleaning plant hub can launch smaller retail spokes in various neighborhoods to better connect with customers. “This enables the DA to earn income from the store operations as well as then being able to offer our satellite store program at a much lower capital expense to perspective franchise partners.”
The Lapels Dry Cleaning development agent program requires a sign-on fee and the construction of an initial dry-cleaning plant with a retail front. With the support of Lapels corporate real estate and development staff, its area representatives can then sell both hub-and-spokes that is to say they can sell a dry cleaning plant franchise and additional satellite stores.
“We are now able to offer a Lapels franchise in the DA markets for under $100,000.00,” said Michael Eisner, Lapels vice president of franchise development. “This opens up our offering to many more people across the country,” elaborated Eisner of the small mom and pops that can more easily afford the satellites. “And with the opening of the development agent’s plant, we have real flexibility in how we build out the network of stores.”
Adds Dubois, “Combining the development agent model that has worked so well in franchising for many other franchisors along with the Lapels hub-and-spokes business model makes this a great opportunity for all involved.”
Source: Franchise News
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