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Franchise My Business with the Right Sales Process

Step 1: Franchise Outreach/Lead Generation

Franchise lead generation and marketing will fill your franchise sales funnel and be the first interaction with a potential franchise buyer.  Potential lead portals for franchise lead generation:

·         www.FranchiseConduit.com

·         www.Franchiseopportunities.com

·         www.Franchisegator.com

·         www.TheFranchiseCourier.com

·         www.FranchiseDirect.com

 

Organic leads can be generated through franchise referral programs, Franchise SEO, Franchise Public Relations and other mediums. 

Franchise Tradeshows can be an effective way to generate leads and meet potential franchise candidates in addition to other marketing channels.

Step 2:  Franchise Contact and First Presentation

Franchise leads should be greeted with an automated response promoting the model, the franchise value proposition and the overall concept so they are enticed to have additional discussions with the franchise team.  Franchise sales calls should be made within 60 minutes of the lead being submitted for best results.  We typically recommend that a text message should be sent as well. We then have additional introduction emails which should be crafted to your brand and franchise model, but ask key questions:

·         Why are you interested in the franchise?

·         What Time Frame would you like to open the Franchise?

·         Qualify the Franchise Candidate.

·         Present the next step in the sales process.

Step 3:  Franchise Presentation Call

During this call, you should explain the sales process and the defined steps in the process before they would execute a franchise agreement.

1.       Introduction and explain the team behind the franchise.

2.       Define the process and qualifications needed to be awarded a franchise.

3.       Ask the buyer to speak openly with you and share their story. 

4.       What is the timeframe for this decision?

5.       Confirm that the franchise process is clear and understood. 

Step 4:  Franchise Buyer Approval / Disclosure

Once the candidate has submitted their completed Franchise Request For Consideration form, it is reviewed and approval is granted to move forward in the process.  We review with candidate what to expect upon receiving the Franchise Disclosure Document.  We recommend sending a hard copy of the FDD sent via FedEx and electronically via DocuSign.  We then like to schedule a call to review the FDD with the candidate and go through the document in detail. Following the candidate being disclosed, validation and communication with existing franchisees is encouraged and recommended.

 

            Disclosure:  Current registered FDD document is sent to candidate.  Unaudited financial statements must be current within 90 days.  In registration states, the revised agreement must be renewed with every registration state every year.  The following are registration states: CA, FL, HI, IL, IN, MD, MI, MN, NY, ND, OR, RI, SD, TX, VI, WA, WI. (https://www.franchisemarketingsystems.com/blog/franchise-state-registrations/)

Step 5:  Franchise Discovery Day

Once a candidate has been disclosed and had the opportunity to thoroughly review the Franchise Disclosure Document, an invitation to attend a Discovery Day is extended.  The Discovery Day is the ultimate franchise sales opportunity, it is where you show off the business, let them see the business in action and get to know everyone involved in the business model.  If the discussions take you there, you can ask for the close at the Discovery Day. 

Step 6:  Follow up for the Close

Constant follow up is given throughout the entire process, the closing process is no different.  Following Discovery Day, most often the candidate has additional questions regarding the information they were provided during their visit.  The final commitment to move forward and become a franchisee is requested and confirmed.

Step 7:  Award Franchise

Now that the decision has been made to become a franchisee, Franchise Agreements and all supporting documents are signed, notarized and submitted to the corporate office along with payment of the initial franchise fee. Training is scheduled and the countdown to Grand Opening begins for the approved franchisee.

 

For more information on How to Franchise Your Business, contact us:

https://www.franchisemarketingsystems.com/contact_franchise_consultants/

 

Ultimate Fighting Championship Franchise Sells for $4 Billion

If you hadn’t heard already, “watching people beat one another mercilessly” has just set a record for the most valuable sports franchise transaction in history at $4 Billion.  The franchise generated just over $600 million in revenue in 2015 and has shown consistent year over year growth in revenue as the franchise has quickly gained in popularity.  UFC is a privately owned franchise and was owned by Lorenzo and Frank Fertitta who both became very wealthy with the successful sale of the franchise brand. 

 

How does the UFC franchise generate revenue?  Pay per view business makes up the largest source of revenue, a $700 million TV deal with Fox television, Over Top Platform offers a monthly membership program for global events held on the channel and then royalties allow the UFC franchise to also monetize the franchise brand through product sales.  Bellatore is the second competitor in this space who is owned by Viacom. 

 

As consumers, we see this every day, the athletes are become more significant in sports notoriety and becoming main stream athletes with basketball, football and baseball.  Mixed martial arts has taken the main stage for viewers and audiences around the United States.  One can see the amazing transition UFC made from a once cult following to main stream America by looking to the sponsors which include Bud Light, EA Sports, Harley Davidson, Reebok and other large name brands. 

 

So why did the sports franchise work so well?  It comes down to the power of a brand and the consistency of a solid business model.  Good marketing, branded products, strategic relationships and a solid business model lead UFC into being a global franchise brand.  The market grew and the established network allowed the franchise to grow exponentially.  Today, UFC broadcasts in 156 different countries.

 

The UFC Franchise will be purchased by WME-IMG which is a talent agency/sports marketing conglomerate owned by a group of private equity firms.  Clearly again, another sign that the UFC brand had made the transition to main stream.  Although the comparison isn’t pure in that other franchises are single teams and the Ultimate Fighting Championship is a league, the transaction has been billed as the single largest valuation for a franchise sale ever recorded.  This would put the UFC Franchise ahead of other valuable sports franchises such as the Dallas Cowboys, New York Yankees and Manchester United. 

 

For more information on how to value franchise businesses, contact us:

info@FranchiseMarketingSystems.com

 

How do I know when to Franchise My Business?

Most of us in business have considered the concept of franchise expansion at least one time in our business’ build up.  The idea of having other people invest in your business and then operate locations as independently owned and operated businesses under a common brand is a powerful concept, why wouldn’t you consider it?  Then of course reality hits and the question comes to the forefront, is my business ready to be franchised?  Do I have the right elements in place to franchise my business now?  Much of what is discussed during franchise consultations revolves around this common question business owners have who are considering the idea of franchise development.  So what indicators can you look to in order to know whether it is the right time to franchise the business?

 

First and foremost, let the market dictate your timing on franchising.  If customers are asking about opening locations, people are filling out your web contact form asking about franchises and you are getting calls from strangers asking how you started and whether you could help them start the business, the timing could be right.  Nothing is a better indicator as to whether you are ready to franchise then when the potential franchisees are already asking for the business and demanding the franchise.  After all, if you don’t franchise the business, these interested parties will either go elsewhere or just become your competition. 

 

Make sure the business is financially viable and showing profitability that would be enticing to a potential franchise investor.  Any franchisees that you would actually want to buy your franchise will look for numbers that make sense.  In today’s “Item 19 Driven” franchise market, the financials of your business are critical in being able to effectively sell your first franchises.  Good franchise models don’t need to make people millionaires with a single unit, they just need to show consistent income and a strong return on investment for what it takes to get the business open. 

 

Confirm that there is a consumer market demand for your product/service.  You want to see that people are asking for your product line or want your services in more places than where you are today.  If the demand is high, the franchisees will perform well when they open for business in their new market locations, if not, it’s tough to be a successful franchisor.  You typically can find market data on your industry growth online or purchase through industry research databases. 

 

Is your business replicate-able yet?  Some indicators of this are if you are able to hire staff and keep them, put people in leadership positions successfully, open additional company owned businesses and teach what you do every day.  Entrepreneurs that make good franchisors are typically further along in their development as business people and get the idea of delegation, management and putting people in positions to succeed. 

 

For more information as to whether your business is ready to franchise, contact us:

info@franchisemarketingsystems.com

 

How to Create a Franchise Evaluation Form

The franchise evaluation form is a critical part of the franchise sales process which is not only necessary as part of the sales process, but is critical in order to make good business decisions as to who should be allowed into your franchise model. So what makes for a good franchise evaluation form and how do you build your franchise evaluation model so that you are screening out the poor performing franchises and accepting only the top potential franchise candidates? To Franchise a business successfully, you need great franchisees. It is much easier to weed out franchise candidates up front before they get into your system then it is after they’ve bought and you realize they don’t have the skill set or the money to do the business.

1. Start with your franchise buyer profile and understand clearly who you want to target and what qualifications that buyer should bring in order to qualify for your franchise opportunity. Know the characteristics, traits and capital needed for them to be able to open and start your franchise.
2. Develop a franchise sales process that takes into account these requirements for franchise buyers. The advertisements, messaging and overall franchise presentation should echoes the target buyer profile and incorporates as many qualifying factors into your messaging as possible.
3. The franchise sales personnel should know and understand the franchise evaluation form and incorporate this tool into their sales process. It should be used as a qualifier not only to determine whether the buyer has the capability to open the business, but also whether they are engaged enough in the sales process to fill out the form and return this to the franchisor. We generally recommend that there should be a hard stopping point in the sales process where the franchisee is not permitted to move further into the franchise sales stages until they complete and return the form.
4. Forms can be electronically sent and many times can be incorporated into your website to achieve the same results as you would if sending via a PDF.
Examples of Franchise Evaluation Forms in both formats, the PDF download/print/fill out form – (http://www.theazarigroup.com/pdf/azaripm-franchise-evaluation-form.pdf) and the electronic form that is filled out directly on the site – (http://franchisinginformation.dunkinbrands.com/apex/DUNKIN_Opportunity_Interest?Cntry=&Brand=)
5. Franchise Evaluation Forms should ask the obvious question of how much money a particular buyer has to be able to invest in the franchise business, but should also take the questions deeper. As a franchisor, you should want to know the candidate’s background, experience, work history, where their capital is (retirement, stocks, bonds, home, etc). You want to have some aspects to the application that are open ended and allow for the buyer to tell you about themselves and their reasoning for being interested in your franchise brand.
6. Franchise Non-Disclosure Agreements are typically included as part of the Franchise Evaluation Form as well and can be incorporated into the franchise sales process. You should ask your franchise attorney how this is permitted to fit into your sales model dependent on your state or market and what franchise regulations may exist.
7. Keep your evaluation forms on file. These can be used for reference for both good and bad franchisees to help determine more accurately who you should and who you should not be focusing your franchise sales efforts on. Also, in cases of franchise litigation or lawsuits, you will be able to use these forms as evidence that you qualified a franchisee before awarding the franchise to them.

All together, the franchise evaluation form needs to be an important part of your sales process and overall recruitment strategy. Be critical of the candidates who are coming into your system, they are being provided an opportunity to grow and build a business using your system and intellectual property. It is their job to convince you that they have what it takes to add value to the company and the family of franchisees you are building.

For more information on how to develop your franchise sales processes or how to develop great franchise evaluation forms, contact us:
info@FranchiseMarketingSystems.com

Does Franchise PR work?

You’ve probably heard the terms franchise public relations or PR and you’re wondering if it’s something you should consider to support the growth of your franchise brand and sell more franchise units. What is franchise PR and does it actually work as it’s intended? From our experience in the franchise development field, we have found that Franchise Public Relations can be an enormous asset to a franchise brand’s growth or a significant waste of money if managed incorrectly. Take a look below at what this really and truly consists of and see how it can work for your franchise growth.

What is Franchise PR?
Franchise Public relations as it pertains to your franchise sales campaign is where you have the marketing and exposure through media sources, third party articles and relevant sources that provide credibility and exposure for your brand. The difference between traditional public relations work and franchise PR is that franchise work focuses on messaging and media which are relevant to an entrepreneur or potential franchisee and the good franchise PR available is able to convert these views to franchise leads. There are great franchise PR resources out there, it’s a matter of finding the right partner and right group to deliver your PR needs. Franchise PR starts with a solid plan, message and then takes consistent, aggressive execution. PR can be done in small amounts by just about anyone, but to truly drive results, it takes a professional group to deliver results. Good franchise PR groups have connections, contacts, systems and processes that provide for significant and consistent PR results. Franchising is a huge marketing and sales business that is focused on finding the great leads you need to close the deals at the end of the day. Examples of good franchise PR for Franchise brands include the following The Patch Boys (https://www.entrepreneur.com/article/250516) and Zaniac (http://smallbiztrends.com/2015/08/zaniac-franchise-teach-math-and-science.html). In order to drive results from Franchise PR, you need to get in front of as many potential franchise owners as possible and a sound Franchise PR plan is critical in order to execute appropriately.

Why Franchise PR?
Public relations for your franchise offers a variety of benefits to you and your brand name. First it is improving your credibility and the total validation of your brand when people see the franchise written up in Inc. Magazine, Entrepreneur or other relevant franchise publications. It is drawing attention, in a good way, to what you’ve done and how your brand is growing every day. It gets the name out there so people have the chance to see what it is all about and why they should be joining in on the franchise as a whole. A good solid PR plan can get you in front of the right people at the right time to truly close deals and sell more franchise locations. This not only helps your bottom line; it is also helping to get your brand in a variety of places that you can’t always be. If your PR plan is working as it should, you’ll see growth by gaining solid partners in the brand business.

How do you Execute Franchise PR?
Once you have a solid plan in place and you understand what you want to say and who needs to hear it, you need to know how to communicate your message to the appropriate resources. This process generally takes professionals who have worked the Public Relations channels in the past and know how to approach the market in order to drive contacts and get as much exposure as possible. Relevant PR exposure includes sources such as Inc. Magazine, Franchise Times, or even Entrepreneur Magazine, but certainly includes smaller marketing channels which are related to business and entrepreneurship. These places can then spread the news about your franchise option even farther than you could have ever dreamed possible.

The key is having a good solid plan. Most franchise owners feel lost when it comes to developing their own marketing and PR plan. That is why we recommend working with a solid Franchise PR company that can help you to get your plan in place. By working with a top-notch firm you can be assured that your information is getting into the hands of those who can make things happen. They are getting your information and PR into the hands of the ones who are actively looking to buy franchises.

Consider working with a top quality Franchise PR firm that knows the ins and outs of the public relations field. They can help you develop a plan that gets you in front of solid leads where you end up closing more deals than losing them.

For more information related to Franchise Public Relations work, contact us:
info@FranchiseMarketingSystems.com

What is a Franchise?

What is a Franchise?

Whether you’re a new entrepreneur starting out or you’re already an investor looking for more opportunities, learning about a franchise is a great way to go. Maybe you’re wondering what a franchise is or how you get started in owning one. Learning what a franchise is can help you in determining whether you want to invest in a franchise or try to start something from the ground up. Here are a few tips on what a franchise actually is and why it is a great investment for your future.

A Franchise is a Proven Business Model

The franchise business is one that has a proven business model and a platform which can be leveraged by new franchisees. If a company is offering franchise options, it means the business model they have is successful and is making a profit for the company and hopefully, when given the same tools and resources, you as a franchisee can replicate their success in your own business. Those who do not have success in their business model typically do not franchise out. That would not be a wise choice for their company as franchising is merely the replication of a business model and operating system, remember the saying “Garbage In, Garbage Out?”. The franchise business model is one that is proven to work in a variety of markets and will be a profitable and successful business where it goes.

Marketing Systems and Business Development

A franchise also means there is a marketing and development system plan in place already that allows a new franchisee to ramp up their business and customer base in a shorter time period when compared with a new business start up. This model helps you to get the word out about your location in a way that is shown to draw in business. By working through the proven model, you can increase your customer base before you even open up your days. Marketing strategies that have been proven to work are already in place so you do not have to try to come up with your own. The brand image should be established, not necessarily with television or national exposure, but the brand should have logos, color schemes and overall branding already set and in place so that you have the tools and presentation needed to effectively begin your marketing and sales quickly upon starting the business.

Mentors and Network

When it comes to owning a business having a good franchise mentor in place is key to your success. Owning a franchise puts that mentor in place from the beginning and provides people who have been in your shoes and worked in the business model with enough time and experience to be able to provide value to you in what TO do and what NOT TO do. You can work with someone who understands the business, knows the ins and outs, and can assist you in all the bumps you may come across along the way. It also puts in place a readymade network of likeminded business people working together. Not only are you networked with great people, you’re working for yourself instead of for a boss. You can have your dream of owning your own business and being successful with a coach and mentor already in place.

Lower Risk

Starting your own business can bring about a variety of risks (a new business is generally in excess of 90% failure rate when compared to a franchise model which has an 80% or higher success rate). If you invest a lot of your own money into a model that is brand new, you may find yourself at a total loss if the business fails to take off. When you use that investment and buy a franchise, you will find yourself at a much lower risk of loss. The brand and the franchise itself is already proven to work so it’s a better investment for you. You’ll find your money is safer going into a franchise than if you were to try and develop a company, marketing plan, and business on your own.

 

So what is a franchise in the end? 

To sum it up, the best definition we’ve found is “entrepreneurship with a safety net,” we felt that this summed up the concept perfectly.  Franchising, when done right is a great combination of providing people with an investment opportunity to become a business owner without all of the risks, fears and anxiety around how to start the business effectively.  It is your business when you buy a franchise, but you have the guidance and support of an experienced partner in your franchisor. 

For more information on what is a franchise, contact us:

https://franchiseconduit.com/contact/

Why Pay a Franchise Fee?

Why Pay a Franchise Fee?

So you’ve decided to look into businesses and are considering buying a franchise instead of starting your own business without the guidance and direction of a franchisor.  The first question you most likely have is why pay a franchise fee and add additional expense to your start up investment in the new business? Maybe you’re asking yourself what the franchise fee is for and why it is necessary for you to pay it. There are many benefits to the franchise fee and what it offers you and in most business decisions, the old saying “it takes money to make money” certainly holds true with the franchise fee as well. Take a look below at the many benefits you receive when you pay the franchise fee for your new location and I think that if you are considering the right franchise with the appropriate value proposition, a franchise fee is a valid expense for a new business start up.

 

Resources available at Your Fingertips

When you pay the franchise fee it is for a wealth of resources right at your fingertips. Part of the beauty behind a franchise opportunity is that it is already proven to work and should have validation behind the business model. It has a business model in place that is proven to be successful and now they are sharing this with you, in effect you should be getting a blueprint for success with a good franchise model. The resources you gain for your franchise fee include items such as initial training, support, guidance and ongoing coaching needed to be successful in your new business venture.  If you compare the expenses of hiring a qualified business consultant to support your growth, generally they are in line with the cost of a franchise fee.  In addition, you gain rights to the trademarks, patents and intellectual property the franchisor has that you want in your new business.  Franchise fees can also provide some tangible items such as software, technology, marketing materials and other aspects.   

 

Training and Support

Although you will now own your own business, you do need training and business support for the franchise location in order to receive the benefits of franchise ownership versus general business ownership. This is another benefit you receive from your fee paid is the time, effort and resources spent on your behalf to train and provide you with the expertise needed to shorten the learning curve in your new business. You will receive training for everything from the back office operations to the frontline customer service policies and procedures. You’ll learn everything there is to know about running this franchise and also your employees will be thoroughly trained as well.  Good franchises will have a solid ability to transfer ownership of expertise and will effectively “train the trainer”.  You also receive ongoing support after the opening of your franchise to help you see continued success in the location.

 

Dedicated Support

The franchise fee also allows you as the business owner access to resources that are set up and dedicated to your continued success in the ownership of your new location. Having support when you’re starting out in a business is very important to your success. Paying the franchise fee gives you that critical support you need to make sure everything goes off without a hitch. Your franchise fee goes for so much more than just buying your way into the company. Do not think of it as that. It is the key to having the support you need on an ongoing basis. This support makes it possible for you to see success in all you do with the company. You’re embarking on a brand new journey and it is a great road ahead with the support you receive from the brand you’ve chosen.

 

If you’re thinking of going into the franchise business, remember that you have a world of opportunities out there. Be sure that you check into the franchise fee and how much it will be, but don’t gauge the value of the franchise fee until you understand what comes with the franchise and whether the services offered warrant the fee requested. Many times you can incorporate the franchise fee into business loans such as SBA loan.  We recommend speaking with other franchisees of the system you are considering and ask them point blank whether they feel the franchise fee was worth the expense.

 

If you are considering franchises and looking into different franchise models and would like to better understand why you should pay a franchise fee or what franchise fee makes the most sense, feel free to contact us for support and franchise consulting:

Info@FranchiseMarketingSystems.com

 

How Many Leads Does It Take to Close a Franchise Sale?

If you’re a franchisor and you’re looking for ways to branch out and feed your franchise development pipeline, there’s a few things you need to know when it comes to closing a sale. Just how many leads do you think it will take to get to that final closing table? One? Ten? You might be surprised to know that it takes considerably more than that to get to the close of your new franchisee sale. When you start to franchise your business you have to find the highest quality leads to market your franchise to.  This means that you need a significant quantity of leads to close a franchise sale.  In particular when you consider that you will be qualifying the leads as they come in carefully to screen and qualify the franchise buyers.  As a franchisor, you only want the best of the best running your brand and name in other locations.  Finding the right franchisees requires a large volume of candidates to find the ideal buyers.  Here are a few tips and facts to keep in mind and how best to approach selling franchises.

 

How Many Leads to Close a Sale

Most often it takes at least 100-150 different leads to actually close a sale according to broad industry statistics (http://www.franchise.org/) . A lead generally is considered a filled out form, which in today’s world of franchise lead generation portals and internet advertising, a form lead isn’t necessarily the best lead.  The good side is that they are easy to generate and generally pretty cost effective ($35 – $65 per lead).  Generating the lead is only part of the sales process, a good franchise sales system will have a solid development team to work the leads and manage the incoming franchise opportunities.  This means consistent calling, regular communications and constant contact with candidates.  Generally we recommend 5-10 calls in addition to a franchise lead nurturing program to get the most out of every lead that comes in.  You may use sources such as the internet, tradeshows or your public relations department may provide leads. No matter where they are coming from, you need to know that they are good quality leads and they will cost you depending on what avenue you use.  Typically, we recommend that you have a franchise sales person on your team for every 400-500 leads you generate per month.

 

Best Lead Generation Strategies to Sell A Franchise

Part of what makes a good franchise development campaign is the leadership and thought process behind it.  Think about the franchisee as your customer, understand what is driving their decision making and what will get them excited about your franchise offering, create the appropriate messaging and then start the lead generation to get in front of the buyers and find the candidates.  When you’re looking to generate leads for your new franchisees, you want to have solid quality leads coming in. What are the best ways to get those leads? Well, internet marketing is still at the top of the list when generating sales leads. The internet can reach thousands more than you can alone and generally for a lower budget marketing campaign, Internet leads alone are capable of driving plenty of traffic and provide a low cost franchise sales campaign. Franchise Marketing plans should also incorporate some version of social media, third party websites and blogs are still very effective for brand development, establishing credibility and for generating great leads. 

 

Other avenues you can pursue include arenas such as your local franchise tradeshows where you set up a booth and can market to franchise and business buyers who are interested in brands and concepts in a particular market.  Tradeshows are viable strategies for generating leads in target markets and typically have a slightly higher closing rate than internet franchise leads.  Tradeshow leads will generally be a bit more expensive ($75-$150 per lead).  Some franchise brands will also purchase lists of candidates and conduct email marketing campaigns to drive traffic and generate franchise interest. Franchise Public relations are a huge area where you can also put the word out to those who are looking to own a new franchise.   Another great avenue for you to gain leads for new franchise owners is by direct selling and marketing through calling to potential conversion franchises in your market space or finding a category of buyer to focus on outbound calling or mailing.

 

How to move buyers through the sales Process

The key to success when reviewing how many leads you need to close a franchise sale is also considering what you are doing with those leads to get them to a closing.  Ultimately, we always use the Franchise Discovery Day as the target to close the new franchisee.  This is the meeting, final review and franchisee’s opportunity to see the business in person and ultimately where the franchise sale takes place.  We recommend creating franchise sales stages where you can understand key performance indicators and see where the buyer is at any given point.  For example, hold a regular franchise webinar where franchisees are invited to come to these as phase 1 of the franchise sales process.  For Phase 2, you might ask the franchisee to fill out an application form, Phase 3 might be a Franchise Disclosure Document review and Phase 4 could be the Discovery Day.  (Typically our franchise sales processes are seven stages).  Whatever your process is, define it and stick to it so you know whether you are getting a ROI from your franchise marketing efforts.

 

For more information on how many leads does it take to close a franchise sale, contact us:

info@FranchiseMarketingSystems.com

How to Franchise Your Business – Working with Franchise Brokers

The franchise development process can be an exciting time for franchisors who are rapidly expanding their brands into new markets.  The amazing growth that some franchises are able to accomplish doesn’t come by accident though.  Good franchise systems have excellent franchise development models in place to recruit franchisees.  A franchise marketing system includes not only lead generation and advertising, but also a sales process, franchise sales people and a franchise sales system that allows for a solid ROI on marketing dollars and ultimately more sales for the franchisor. 

 

When discussing how to franchise a business effectively, one channel that always comes up as a question mark, particular for new franchisors, is how or why they would consider working with franchise brokers.  A Franchise Broker is a third party referral source who supports franchise development efforts by way of introducing qualified franchise leads.  Franchise brokers will be paid anywhere from $15,000 up to $30,000 for a sale in commission when the franchise lead is placed in a system.  As one might imagine, particularly for a new franchisor, this is a difficult pill to swallow and seems egregious when considering that franchise fees may only be $25,000 to $50,000.  Keeping in mind that the value of the royalties and recruiting a new franchisee well outweigh a single commission payment, it still is a very good deal for the Franchisor.   

 

As an outsourced Franchise sales organization, Franchise Marketing Systems generally recommends working with brokers and certainly for a new franchise system who needs every bit of exposure they can get while entering the franchise marketplace.  A Franchise broker will operate much like a real estate agent will, in that they represent a large group of franchise brands and when they develop a relationship with a buyer, they will help the buyer find the best fit for them out of the franchise options they work with. 

 

The Franchise Broker spends their own money on advertising and presents themselves as a third party, not connected to any one franchisor in order to help the franchisee from as unbiased of a position as possible.  Because franchise brokers are only paid on success fees, as a franchisor, you need to almost work with brokers like a second customer in order to show them you care about their success and are willing to invest in their clients also.  Franchisors who do a great job with this process are doing things such as buying plane tickets for broker’s clients who get to the discovery day process, being extremely reactive to broker’s needs and requests, being available for calls and focused on follow up with broker’s leads after introduction and flying brokers out to the corporate headquarters for meet and greets. 

 

Several franchise brands have mastered working with Franchise Brokers and managed this process very well.  Menchie’s offers a $30,000 commission, Schooley-Mitchell presents a $27,000 commission along with other franchisors who have had great results working with Franchise Brokers.  The benefit to it all is that with a great franchise broker campaign, some Franchisors are able to manage a large part or virtually all of their franchise development campaigns.  Many franchisors have driven fantastic results by leveraging franchise broker relationships. 

 

An easy way to start working with franchise brokers and introduce your franchise brand is to join franchise broker networks.  Some of these that we recommend include:

IFPG – www.ifpg.com – reasonable fees and solid results.

Franserve – www.Franserve.com – great network for startup franchisors.

Frannet – www.Frannet.com – established and productive network.

Franchoice – www.Franchoice.com – proven and professional franchise broker network.

 

These networks charge varying fees to enter the system, but will allow a new franchise brand to have access to hundreds of brokers and immediate access to great franchise relationships.  When you franchise your business, it is critical to get the help, assistance and additional exposure from third party franchise brokers. 

 

For more information on how to work with Franchise Brokers, Contact Us:

info@FranchiseMarketingSystems.com

Making a difference by Franchising your business

Franchising is one of the most powerful expansion vehicles on the planet. It takes a variety of business elements, systems, processes and market characteristics to franchise a business successfully. Most businesses that franchise are driven by the need to capture market share, generate investment dollars or add valuable human capital to the organization by ways of franchisees who invest in the business. Some franchise systems are driven by a greater calling though, one that revolves around giving to a greater good, a cause or something that carries social value. Franchise systems that have a calling, something they wrap the companies core operating principals and mission around have a unique set of advantages.

What does it mean to give back and have a cause that is intrinsically wrapped into a brands “being”? It starts with finding something that strikes an emotional chord with the leadership of the company. Something that wasn’t just picked out of a hat, but truly holds intrinsic value. A Franchise Marketing Systems client, Mosquito Terminators, who sold 87 units in the company’s first 18 months of franchising committed a percentage of overall revenues to give to a charity in Africa that helped kids avoid mosquito born diseases such as malaria. Classic Commercial Services is another example who through the brand’s classic cares platform everyone in the system commits two percent of gross revenues towards those in need. The ultimate example of this paradigm is franchise marketing system’s client Children’s Miracle Network where 50% of all revenues generated through the platform go back to the children’s hospitals the organization is designed to support.

Whatever the cause, it should mean some thing and be entwined into the culture of the organization. As in most aspects related to leadership, it is critical to be consistent with how these charitable causes are tied into every aspect of the business. You can’t be taken seriously in your mission to help people if other decisions you make in the business contradict your stated cause. The way you as the leader of the brand interact with your staff, support your Franchisees and even speak to people on the phone in conversation must align with your brand’s cause.

So how do you find a cause that means something to you? Start by watching the news….pay attention to what catches an emotional nerve and then align with a charity that fills that need. Do research on the charity first, a starting point are charity evaluation sites such as (https://www.charitywatch.org/top-rated-charities). Make sure to do your due diligence and then build the commitment into your franchise expansion plans. The community, your franchisees and your peers will respect and love you for your dedication to helping people and your franchise will grow as a result of this.

For more information on how to franchise your business, contact us;
Info@franchisemarketingsystems.com