PMD nearly ready with franchise model
Stores can convert or remain in licensed format
Heath Combs -- Furniture Today, September 3, 2009
COLUMBUS, Ohio — A few months later than expected, PMD Furniture Direct says it is weeks away from the rollout of its new franchising organization.PMD Furniture Direct is the franchise company that Jeff Hosking, president and CEO of home furnishings retail network PMD, or Power Marketing Direct, announced plans for in January. Currently, PMD dealers are licensed stores, not franchises.
Company officials had expected that PMD could become a franchisor by spring, but the process proved more complex than its attorneys and consultants had thought.
"The light is at the end of the tunnel. We're finally almost through this," Hosking said.
PMD dealers will have the option of remaining licensed stores or converting to franchises. Franchisees would be able to sell their businesses, something licensees can't do, PMD officials told Furniture/Today. In addition, a franchise operation requires greater legal disclosure from the franchisor, and would give start-ups greater access to capital, officials said.
PMD has been sending out franchise disclosure agreements over the past two months to its current licensed dealers, Hosking said.
He said the company will become a franchisor in 48 states.
PMD Furniture Direct recently hired Dallas-based m strategies inc., or MSI, to handle public relations for its franchise model. MSI will work with Orange County, Calif.-based Frandeavor, which will assist in recruiting franchise candidates, Hosking said.
