Tuesday, September 2. 2008

"Hire a Hubby" Expands Franchises with Location Intelligence

I couldn't resist this story that was sourced from ITNews. Hire a Hubby, an Australian franchiser of "handy-man" services, looking to expand its number of franchisees has employed a location intelligent approach. By looking at the number of households, Hire a Hubby targeted areas where their service would be most in need. However, to pay for adding this type of location intelligence, it was forced to increase its franchise fees but at the same time could justify the cost with increased revenue potential. "We added $3,000 in real expenses to the [standard franchisee] start-up package but $20,000 in gross profitability,” the company told iTNews." The company now segments the price of its franchises based on revenue potential with the higher franchise costs going to the areas with higher potential. I wonder if they employ just men?

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