PLAYLive Update: Expansion into Other States

November 18, 2015

PLAYLive has had an exciting year! As a part owner of this franchise, it’s very fun to watch the business continue to grow. While as a franchise there is still a long road ahead to sustainable profitability, we have a strong foundation going into 2016. This includes our current efforts to expand the franchise into other states.


Expansion Strategy 

Different franchisors approach expansion through various measures. I have seen some go national right out of the gate. Others dominate the local market before expanding regionally.

Our expansion strategy hinges on growing cautiously and slowly. 

Presently, we have locations open and operational in the PLAYLive home state of Washington and a few in Idaho and one in Oregon. We have sold units in California, Florida, and Montana. They are anticipating a 2016 or 2017 opening.

Next we are looking to expand in Texas, further develop Florida, Colorado, and Arizona. Our expansion rate in 2016 will be determined by our ability to support new franchisees. Their success will define our future. We want to be proactive about helping them build the best foundation for success in their area.

Once we ensure that we are able to support existing franchises in new states, we will continue to expand to other states. Our long-term goal is to become a national brand.


FDD Adjustments

Each state has different rules and regulations for franchises. The FDD will need to be updated to reflect those rules when you expand to a new state. For example, California’s new law making it more difficult to terminate franchisees will need to be taken into consideration when we re-register the FDD in California in April 2016.

In particular, we need to ensure we adhere to registration or filing guidelines. There are thirteen states that require registration and eight that require you to file and pay a fee. It’s essential that we are compliant with every state we are franchising in.


The Ultimate Test

Selling units is exceptionally important for us as a franchise. We can’t grow as a franchise without adding additional locations.

The real test comes after we close the deal with our franchisees.

Our ability to support new franchisees is essential to a thriving future. I have personally witnessed franchisors that have come out of the gate to fast and have sold more units than they are capable of supporting. What starts as initial complaints from franchisees becomes a long-term problem as the franchise continues to expand. Unhappy franchisees will derail our efforts with future prospective franchisees as they complete their due diligence. That’s why at PLAYLive we are being very deliberate about giving new franchisees the tools and support to prosper.


Your Franchise Lawyer to Navigate Expansion

If you are currently looking to expand your franchise, contact me today. As an integral player in developing and executing the expansion strategy with PLAYLive, I can help you build the legal foundation to expand in the model that best fits your franchise goals and financial abilities. Having a strong legal foundation will give you the freedom to focus on securing and supporting new franchisees.

If you are thinking about franchising in the future, download my free Franchisor Workbook. This in-depth workbook will give you a step-by-step guide to evaluating your next steps to going from a business to a franchise.