Franchise development and franchise sales are like any other sales process, you have a product, you should have a defined buyer and you need to get your product in front of this buyer, the difference in a franchise sales process is that you are selling intellectual property, this is different for most sales people and takes some time to transition to get comfortable with the process.
1. Have patience. If you haven't sold a franchise before, this process takes time and focus. Most franchise transactions take in excess of 90 days and can take as long as a year to complete the sale. There are endless variables in place as to how a franchise transaction will impact the buyer's life....family....financial future and lifestyle will all be impacted by this decision, don't rush it, don't push the timeline. Buyers need to be supported, guided and communicated with when it comes to buying a franchise. If you do your job as a franchise salesperson, you will be there for the buyer providing real, authentic support, data and information to them as they work through the evaluation process.
2. Have a qualified management system in place to manage the process, lead flow and communications with buyers is essential. Implement a franchise sales CRM and you can expect better results from the franchise development campaign. By effectively tracking, reporting and evaluating the franchise sales data you can make better decisions regarding your market, business development and franchise sales team. Franchise Marketing Systems has an approved CRM that works well throughout this process: (http://www.franchisemarketingsystems.com/services/franchise-crm/)
3. Define your buyer profile and characteristics you need to make someone successful in your business. Having worked with a wide variety of different franchises and business models, some industries and franchises require certain skill sets (Sales, business development, prospecting, client management, etc) while others may be completely different (Retail, Food Service, Technical, etc). Create a solid buyer profile and stick to it. Make sure that buyers fill out an evaluation form, that they answer the questions completely and accurately in order for you to draw a conclusion as to whether they are the right fit for your business. Then comes the hard part....say no to candidates that don't meet your qualificaiton requirements....even when they have the money.
4. Have a good sales team in place to manage the process. It typically takes in excess of 150 leads to close a franchise sale, you need to have a lot of manpower in place to manage this lead flow and to appropriately call the leads the 6-10 times required to get a candidate on the phone and to appropriately deliver the value proposition. We typically recommend at least 3 stages and people involved in the sales process....the owner of the company should not be involved until the END of the sales process - build the perceived value in what and WHO they get when they purchase the franchise model. Don't give them access to the head of the company early on in the sales process.
5. Know your market - don't go into the franchise sales process without a complete market evaluation and competitive overview. You can't answer a buyer's question of "how do you compare with them?" with...."Well, I've never heard of them", or "I don't know much about them" and sound like you know your industry. Having the information up front and ready is part of being able to sell franchises effectively. We recommend a good strategic plan and market research program prior to launching a franchise sales campaign.
6. Have your ducks in a row. Make sure that your FDD, franchise state registrations and complete franchise legal documentation are in place to effectively and legally offer a franchise. Remember, you can't even market a franchise legally before you have gone through this process, make sure you cover your bases prior to launching a franchise sales campaign.
For more information on how to franchise your business, contact one of the Franchise Marketing Systems franchise consultants:
Don’t Focus on the Floor Beneath You, Look Up to the Possibility Above.
When interviewed by Forbes, less than 19% of all respondents in the U.S. said they were satisfied with their job. In a market where jobs seem scarce, this seems like a lot of people who hate what they do. How could this be the case? It’s simple, when you play it safe every day and do what you’ve always done, there is little room for creativity, growth or passion in what you do.
What is it in an Entrepreneur that Drives Them?
Is it the Money? The Ego? The Freedom of Business Ownership? Whatever the reason is behind an Entrepreneur’s drive and commitment to their vision, it is the passion for that goal that pushes them to new limits and heights - passion for their brand, their vision and their own personal accomplishments.
It May Be time to Evolve.
If you own a business and your growth has become stagnant, couldn’t it be time to consider the next phase in your company’s evolution? The greatest accomplishment a leader could ever have is to replicate their success through teaching others how to be successful. Franchising would allow you to build your vision and brand beyond what you can accomplish with your own two hands.
Attend a Free Franchise Your Business Webinar: Link to Presentation
Why is Franchising a valid expansion Vehicle?
- High unemployment rate means significant opportunities for strong candidates.
- High levels of activity in the Franchise Marketplace – January was a record month for lead generation by the web lead generation sites, Franchise Show are setting record attendance levels (Miami Franchise Show over 12,000 attendees).
- High levels of capital sitting on the sideline has become active and people are investing cash into businesses with the increased levels of optimism for the economy.
- People want guidance, direction and “order” to their entrepreneurial endeavor, more candidates are making the decision to start a business with the support and guidance of a franchisor than to go out on their own.
- Economies of Scale from a franchise system allow the small business owner to realize the benefits of a larger group while still maintaining the upside of owning their own business.
Contact us for more information on how to Franchise Your Business. 800-610-0292.
Developing a franchise model requires structure, time, process and consistency.
It is not an easy process in most cases, in particular when you are a Start-Up Franchisor and have yet to sell a franchise unit. Selling franchises requires patience, objectivity and a strong value proposition - the first few franchises typically don't come easy - the buyer needs to be convinced that a new franchise organization is the right fit for them.
1. As a franchisor, you need to be ready to "throw out a big net". Franchise sales typically require 150-350 leads to close a sale depending on the initial investment required of a franchisee to open a location of the business. Be ready to talk with anyone and entertain the thought of working with any potential franchise buyer. Don't sell to anyone who walks in the door...but don't stop people from walking in the door who are interested in having a conversation with you.
2. Have a defined sales process in place. Because of the large volume of leads required to close a franchise sale, it takes a well-defined process to manage this effectively. Franchise Marketing Systems uses a Franchise specific CRM to manage this process and understand where buyers are in the sales model (http://www.franchisemarketingsystems.com/services/franchise-crm/) - whatever you use, you should use something...without an effective lead management tool, you will lose your ability to focus and drive leads from suspects to prospects to deals.
3. Segment Duties. In almost twelve years as a franchise consultant working with business owners to help franchise businesses - I have rarely seen a business owner be effective in the franchise sales process outside of closing the transaction. Franchise buyers are understandably extremely critical of everything a franchise and company has to offer in a franchise concept. The question is always going to come back to why should I buy a franchise from you when I could figure this out on my own? A franchisor should have someone who is taking the initial contacts and "screening" prospects to set them up for the close. No one in the organization is better or more effective at closing the franchise transaction than the owner/founder of the company, on the flip side, no one is worse at being objective and remaining calm, cool and professional when hit with initial questioning by a prospective franchisee. Have someone responsible for franchise sales who works the suspects...when they find a prospect, that is when you get the owner or founder of the company involved. This is a service that Franchise Marketing Systems provides with outsourced franchise sales and franchise development (http://www.franchisemarketingsystems.com/services/franchise-sales/)
4. Franchise Brokers - how or should you work with them? Yes. There are great organizations that provide structure, credibility and support to franchise brokers, you should inquire with them about which brokers to work with and how to connect with valuable broker contacts (http://www.franchiseba.com/). Why do we say yes about working with brokers? Because it goes back to the "Throw out a big net" theory - brokers can provide leads to you in your pursuit of adding new franchise partners, period. You, as the franchisor, have the option to sell to the candidates they bring to you, so you are not held to taking the partners they introduce you to unless you choose to. Good brokers are paid 40-50% of the initial franchise fee. It is worth every penny of it if you tie into a good broker relationship. Some franchise systems such as Puroclean (http://www.puroclean.com/franchise/) have sold a large amount of their 400 plus franchises through broker referrals. Brokers will market for your franchise, generate the leads, introduce the model to franchise prospects and hand you a qualified lead for you as the franchisor to close. It can be an effective marketing and lead generation model for a new franchise concept.
For more information on franchise development and franchise sales, contact Franchise Marketing Systems: (800) 610-0292 / firstname.lastname@example.org)
"Franchising is in the Air"
This past weekend, Franchise Marketing exhibited at the Los Angeles franchise convention - put on by MFV (http://www.mfvexpo.com/) conventions and sponsored by the IFA (http://www.franchise.org/). Over 8,000 attendees came to the show looking to buy into franchise concepts and in evaluating franchise opportunities.
This past week, the following FMS clients have sold Franchises: REDRHINO, Snoopit, Alia, Classic Commercial, Caring Matters, Hood Cleaners of America, Restoration 1, Sign City, Bella Pita and Come 2 You Mobile Detailing.
In 2012, the following Franchise Marketing Systems clients have sold franchises:
Flower Tent, Your Pro Kitchen, My House Fitness, Vital Restoration, Mosquito Terminators, National Tax Credit, Ducerus College Planning Specialists, Splash N Dash, Suite Paws, PHWS, Blue Chip Pet Care, Generate My Ads, Junk King and The Weave Shop. Complete Client List: www.FranchiseMarketingSystems.com/Clients
Franchise Marketing Systems has sold 414 franchises over the past two years. If you are looking to grow your business, brand and concept into new markets, Franchise Marketing Systems can help develop the franchise model and market your brand.
How do you find franchise partners who would be interested in your brand?
- The Internet – the average client generates 50-100 contacts per month - through franchise specific lead portals and online franchise marketing programs, any brand and gain exposure in a short time period.
- Tradeshows – tradeshows generate on average 250 contacts per event – over 8,000 franchise buyers were in attendance during the Los Angeles franchise show and over 10,000 attendeeds to the New York show in June.
- PR – Franchise specific press - Franchise Marketing Systems works with franchise specific press firms and agencies who can generate publicity for franchise brands aimed at attracting franchisees for specific brands and concepts.
- Franchise Print Ads - although print is a bit outdated, it still can be an effective way to generate interest and awareness for a franchise brand. The Wallstreet Journal, USA Today and Entrepreneur Magazine (http://www.entrepreneur.com/)
Many people on the market are looking for and working towards business ownership. Most do not have the entrepreneurial spirit or confidence to take the next step without the support, guidance and confidence that comes from a franchisor.
Franchise Marketing Systems has been on the road exhibiting at tradeshows in markets across the U.S.:
2012 Franchise Tradeshows: (Ask us for free passes to any of these shows)
Fort Lauderdale, Florida
New York, New York
Raleigh, North Carolina
Los Angeles, California
If you are looking for opportunities to expand your business into new markets, contact us:
Join us for a Free Franchise Your Business Webinar:
If you are looking at available franchises that you would like to join, visit our client page:
Join the Franchise Marketing Systems team for a webinar on how to franchise your business - tomorrow, 9/20/2012 at 12pm est.
Please register for How to Franchise a Company on Sep 20, 2012 12:00 PM EDT at:
Join us for a Discussion on How to Franchise a Business. The reasons why businesses franchise, how to franchise and what the steps in the process to franchise a business include.
- Franchise Legal Structure
- Franchise Sales Processes
- Franchise Documentation
- Franchise Success Rates
- What makes a business Franchiseable?
- Franchise Management
After registering, you will receive a confirmation email containing information about joining the webinar. There will be a dial in number to use for the audio portion of the discussion.
Brought to you by GoToWebinar®
Webinars Made Easy®
The Franchise Your Business Webinar is designed to offer business owners and professionals a easy and simple way to learn from franchise development professionals the processes, techniques and strategies involved in successfully launching a franchise brand.
For questions, please contact us: 800-610-0292 / email@example.com
Franchise Marketing Systems Client Growth
FMS Clients have continued to exceed growth expectations in 2012 with new market growth and the development of several young brands. FMS clients have sold 364 franchises during the past 24 months. The franchise market continues to improve and along with positive economic indicators we see additional growth taking place in the franchise market segment at large.
The Franchise Industry continues to grow at a rapid pace with the difficult job market and the development more programs to assist in financing new businesses throughout the U.S. With the general business environment showing signs of life, more businesses have moved to a growth phase in working to establish brands on a regional and national level.
Franchise Marketing Systems team has grown and is adding new team members to the marketing and franchise development staff: www.FranchiseMarketingSystems.com/About
FMS Clients have seen fantastic growth in unique market segments:
REDRHINO Epoxy Flooring Company – 6 Franchises in 2012
Restoration 1 – 4 Franchises in 2012 (1 Master Franchise)
Snoopit Imports Chinese Imports – 4 Licenses in 2012
Junk King Junk Removal – 5 Franchises in 2012
Your Pro Kitchen – First Franchise sold in 2012
Hood Cleaners of America – 3 Franchises sold in 2012
My House Fitness – First Franchise sold in 2012
The Weave Shop Franchise – 4 Franchises sold in 2012
Mosquito Terminators – 11 Franchises sold in 2012
CFO Systems – 4 Licenses sold in 2012 (1 Master Franchise)
Blue Chip Pet Care – 2 Franchises Sold – (1 Master Franchise) in 2012
Bungobox Moving – 3 Franchises Sold in 2012
Flower Tent – 24 Franchises Sold in 2012
Champion Food Trucks – 1 Franchise Sold in 2012
Caring Matters Home Care – 6 Franchises Sold in 2012
Splash and Dash Pet Care – 6 Licenses Sold in 2012
Park Select Franchise – First Franchise Sold in 2012
Strands of Beauty – First Franchise Sold in 2012
911 Restoration - 5 Franchises Sold in 2012
Vital Restoration – First Franchise Sold in 2012
Ducerus College Planning - 8 Licenses Sold in 2012
Never Paint Again - 1 Franchise Sold in 2012
Ink Ur Body Tattoo Salons - 1 Franchise Sold in 2012
Pet's Healthy Choice - First Franchise Sold in 2012
For a complete listing of Franchise Marketing Systems clients, visit the site: www.FranchiseMarketingSystems.com/Clients
Franchise Marketing Systems exhibits at most of the franchise tradeshows across the United States. Contact us to find out what franchise shows are in your area. The New York Franchise show in June attracted almost 10,000 visitors!
Current FMS Tradeshow Site Schedule:
Fort Lauderdale, FL
Los Angeles / Anaheim, CA
For more information on how to franchise your business or how to develop a franchise system, please contact us (800) 610-0292 or firstname.lastname@example.org
How to sell franchises to the right candidates:
In order to franchise your business successfully, it takes the appropriate systems, marketing tools, training systems and scalability.....but most importantly it takes a great screening process. I once heard a great saying about franchising, the three most important elements in franchise sales are Selection....Selection and Selection.
It sounds corny, but it couldn't be more on point when franchising a business. Particularly when a new franchise is taken to market and the first franchise partners are recruited, selection is extremely important. I have seen it many times before, where a new franchisor is excited to put "Pins in the Map" and takes the first checks that walk in the door.
It's easier to talk about it than actually practice the restraint in becoming a new franchisor! Someone calls interested in opening a new location of your franchise and they have a $35,000 check in their hand. This is how someone "slips through the cracks" as the wrong kind of franchisee. This is how it starts, then you have a franchisee who isn't following your system, is "polluting the well" with other franchisees and is causing more heartache for you than it's worth in managing the debacle you've created.
So when you make the decision to franchise your business, what character traits and elements can you look for in new franchise partners that will limit the mistakes?
1. Look for candidates that you can work with. Great talent, drive to succeed and lots of money don't necessarily mean that you can work with a potential franchisee. Make sure that personalities and values match up in order to find good partners.
2. Don't cut corners. Good franchise buyers take time to find and even more time to fully train and support. Don't let your buyers short cut the training or skip steps in your process, this is a sure way to land people who won't value your system or worse yet, your advice.
3. Find the glass is half full partners. Optimism is a funny thing....you either have it or you don't, if you are fighting up-river all the time with your first franchise partners, it's going to be a long ride to get to that point where your franchise system hits critical mass and is able to grow consistently.
4. Look for singers. You want people early on in your franchise system that are willing and able to talk with new buyers about their business, experience and hopefully YOU in a positive way, your first franchisees will be your most important testimonials.
5. Don't sell to under-capitalized buyers. It's a slippery slope....and it gets worse after you've sold it to someone who just doesn't have the capital to launch your franchise. They will do it on the cheap every step of the way to keep the franchise moving forward....and when you do it on the cheap, well....you get cheap results.
For more information on how to franchise your business and building a successful franchise brand, contact Franchise Marketing Systems:
Owning your own business is both rewarding and challenging. If you've had the good fortune of building a successful one, you have realized one of the most fulfilling and significant accomplishments in the world. Business ownership is freedom....it is the ultimate form of accountability, empowerment and opportunity. There are many business owners in the world who are great entrepreneurs. They build fortunes with their salesmanship, creative approaches to problem solving and positive energy and are typically full of charisma....America was built by people with this amazing ability to create markets and build wealth for themselves.
There are many entrepreneurs that fit this description, but there are far less who take the next step in the evolution of their business and truly scale. Scale is the ultimate form of leadership, it is the replication of a business system that is proven to work regardless of whether it's founder is operating the local business or not. It is the proof that systems, a concept and a business model are what makes a company successful and not just the hard work of it's founder. This is what the Ray Kroc, Steve Jobs and Colonel Sanders of the world have done. They have built empires by furthering their creations through the empowerment of others. These are true leaders.....we build monuments to these business leaders and fit to get brief moments of their attention.
Franchising a business is the most proven and effective tool to accomplish this. It is the weapon that business owners have used for over one hundred years to combine the entrepreneurial energy of franchisees with a proven business system from the franchisor to accomplish building scale. Employees don't have the passion for what they do that an owner does....that's why they have chosen to work for someone else. Offering equity in a business sells your soul and part of your vision to another who now has control and time is always ticking on what you can accomplish in building your business, brand and legacy. Franchising answers all of these questions with a proven, effective and timely solution for market expansion and scale.
Franchising isn't for everyone. Some enjoy being in control of everything that happens in their business and "digging the ditches" every day. This is okay, there is plenty of room for ALL of us to be entrepreneurs and build successful businesses for ourselves. But for those who want something bigger, who want to empower others and truly leave a mark behind, franchising might be the strategy and vehicle to accomplish your vision.
For more information on how to Franchise Your Business, Contact Us:
Franchising a Business requires a significant amount of documentation in order to be done effectively. A good franchise system will have a great franchise operations manual at the center of it. The documentation will accurately portray several elements of a franchise model:
1. The character and personality of the organization. A franchise is more than just the X's and O's of how to do a particular task in a franchised business. A great franchise system should have personality, character and a brand identity - these things come through intangible elements of a business. An enormous part of the McDonald's Franchise system's success came from Ray Kroc's personality infused throghout the business model. Executives throughout the company making millions of dollars per year in some cases, could still be found picking up garbage out of the restaurant parking lots and wiping down mirrors in the bathrooms.
2. Document the essential how to's. Many franchise operations manuals go overboard pontificating about strategy, concept, ideas and philosophy of the organization, but forget to include the absolute basics. As an entrepreneur who is franchising a business, you probably have forgotten what it was like day one when you first "turned on the lights". As a new franchisee, there is a feeling of overriding fear that you won't be successful in a new business start up. It is the franchisor's responsibility to alleviate that fear and provide confidence during the start up of a new franchise location. This happens by the franchisor providing support, being available and being willing to go the extra mile to keep a franchisee on the straight and narrow. It also happens because the operating manuals and documentation offers the franchisee a clear and simple way to understand how to manage each day of operating the new business.
3. A Great Franchisor has a well documented training process. Complications in franchise relationships don't just happen overnight. If the franchisee is given the impression that a franchisor is "figuring it out as they go" and making up the training programs or organizing support structure as the need is discovered, slowly but surely the confidence of the franchisee in the franchisor will erode. Eventually there will be a feeling of discomfort in that the franchisee may wonder if the franchisor really has all the answers. Have great documented processes and organized ways to deliver this documentation to the franchisee. With intranets and virtual private networks, it is simple and relatively easy to get confidential documentation to a franchise network.
A good franchisor is able to provide excellent support and hand-holding throughout all phases of the implementation of the franchise system. I have found that the most effective franchisors are ones who lead by example. If you remember the stories about General Patton, he would lead his tank batallion into combat on foot at the lead. A good franchisor has this same mentality and earns the respect of his franchise partners with actions....not just words.
For more information on how to franchise your business, contact us:
(800) 610-0292 / email@example.com
Franchise Expansion in 2012.
Franchise Marketing Systems clients have seen impressive growth in 2012 so far! With increasing growth and momentum, these organizations are taking market share and building brands in their respective industries.
The powerful vehicle of franchising has allowed these organizations to gain traction with customers in new markets far from the reach of the corporate locations while maintaining the quality and standards that made them successful.
Franchise Marketing Systems has worked with the following organizations who have realized growth in 2012 and expanded their brands this year:
(Complete Client List: www.FranchiseMarketingSystems.com/Clients)
REDRHINO (www.REDRHINOFlooring.com) – Epoxy flooring provider – works with residential and commercial clients – sold four new franchises in 2012.
Pet’s Healthy Choice (www.PetsHealthyChoice.com) – Pet food delivery operations – sold one new franchise in 2012.
Restoration 1 (www.Restoration1.com) – Full Service Restoration Service Provider – sold three new franchises in 2012, one being a master franchise.
The Weave Shop (www.TheWeaveShop.com) – Weave salons – work in the specialty hair care market – sold two new franchises in 2012.
Generate My Ads (www.GenerateMyAds.com) – Pre-owned vehicle marketing - sold one new license in 2012.
Mosquito Terminators (www.MosquitoTerminators.com) – Pest control services and sprays – sold six new franchises in 2012, one being a master franchise.
Snoopit Imports (www.Snoopit.com) – Import brokerage business – sold one master license in 2012.
Caring Matters Home Care (www.CaringMattersHomeCare.com) – Senior Care and home care business – sold three franchises in 2012.
Never Paint Again (www.Never-Paint-Again.com) – Residential and commercial painting business – sold one franchise in 2012.
Flower Tent (www.FlowerTent.com) – Flower retail operations in temporary tent locations – sold four franchises in 2012.
Champion Cheesesteaks (www.ChampionCheesesteaks.com) – Mobile food truck operations – sold one franchise in 2012.
Splash and Dash for Dogs (www.SplashandDashforDogs.com) – Dog washing and bathing operations – sold five in 2012.
Chopple (www.Chopple.com) – Web marketing and coupon site license – sold one license in 2012.
For more information on how to franchise your business or whether franchising is the right expansion vehicle for you, contact us: http://www.franchisemarketingsystems.com/FranchiseYourBusiness/