So you’re ready to launch your newly franchised brand. You’ve set up your store; proved it out over time, have the UFDD and the Operations Manuals in order, so now what? What do you have to show for all the time and money spent up to this point? Where’s the ROI?
Well in order for a franchise system to truly grow you must sell/award franchises to qualified individuals. You’re not a “growth story” if you’re not selling new franchise units, hell you may not even be a franchise story if you’re not selling franchises!
New franchisors are usually so caught up in the idea of “process” or in other words the work of the business so to say that in fact they overlook the time, cost and needed strategy to sell franchises. In fact, I’ll bet many are so sure their franchise will be a hit that they think you can sell it on your own or simply use a “success fee” broker network as the entire development plan. There are no zero cost decisions, one way or the other.
It doesn’t take long for the smart franchisors to recognize a reality and ask themselves a tough question; what do you I know about selling a franchise? Most don’t even have a written Strategic Development Plan? Yes a development plan, a plan that outlines the markets, the trade areas, the type of ideal franchisees, where to find them, the cost per inquiry, and the conversion percentage, the budget, and the goals. A well thought out plan that is forward-looking for the first one to three years.
Have you also given thought to the logistics, how do you intend to quickly respond to all the incoming and make outgoing calls? Make the follow-up calls; conduct the discovery days and all the prospects questions, his wife’s questions, his attorney’s questions. Consistent, timely sales efforts rule the day. If you’re lucky, you quickly realize you don’t have the time or the expertise to launch a effective selling system for your franchise.
The danger and destruction of ignoring that reality can be seen at all levels in the franchise industry from dead brands to bankrupt franchisees. When franchisors fail to recognize that they are now in a completely different business than the concept they started several mistakes can happen. Whether its selecting the wrong franchise candidate, or thinking they can service an international franchisee or opening in an market where they have distribution challenges or opening in a market with zero name recognition, franchisors can sometimes be their own worst enemy to growing their brand in an aggressive but responsible way.
The successful Franchisors all come to the realization that just because they know their business doesn’t mean the franchisor knows the franchise business. Certainly not anymore than a franchise strategist might know the trade secrets of operating your business successfully.
The road is littered with new franchisors that tried the DIY approach. Or perhaps paid a company that is really in the business of selling paperwork like the FDDs, Manuals, & Brochures, but not actually selling the franchises. Or thinking a broker network, which is designed to supplement your selling strategy, should be your sole selling strategy. So we get back to the question; now what?
Franchise Growth Solutions, LLC. may be the answer. If accepted as a client we act as your outsourced Sales & Development Department.
We start with your strategic plan, your lead generation strategy, defining your budget, your response mechanism, writing sales letters, the qualifying process, the phone calls and follow-ups, guiding the franchise candidate through the due diligence steps, conducting discovery days and closing the franchise sales transaction. Of course you are involved every step of the way and the final approval of any franchisee acceptance is always yours, never ours. Franchise Growth Solutions is YOUR Franchise Development Department without the high cost of full time employees.
Since we accept only three to five clients at a time we recommend you contact us for a FREE EVALUATION & an open, honest discussion regarding your brand, it’s growth potential and whether we mutually agree if Franchise Growth Solutions is a good fit.