Franchising can be a lot of Fun. The excitement around a growing brand and the combination of a proven system helping put entrepreneurs into business for themselves is always exciting news.
The Franchise Marketplace is full of opportunities….about 3,000 different franchise brands are currently in the market and are growing through franchising. This is not an exact number, but in either case, the franchise industry is full of concepts.
In the U.S., a new franchise opens about every 8 seconds of each business day, needless to say, there is a lot of activity and growth happening in the marketplace on a constant basis.
What does this mean to you? Well, if you are a buyer, there are endless opportunities, one of which is sure to fit your needs and interests from a franchised business perspective. As for a franchisor, it means that you have to fight a bit to get air time. You need to get exposure for your brand and business model in order to be seen by valid buyers.
So what are our options? First, we need to define the value proposition for our franchise model:
Definition of a Franchise:
A franchise enables you, the investor or franchisee, to operate a business. You pay a franchise fee and you get a format or system developed by the company (franchisor), the right to use the franchisor’s name for a limited time, and assistance.
For example, the franchisor may provide you with help in finding a location for your outlet; initial training and an operating manual; and advice on management, marketing, or personnel. The franchisor may provide support through periodic newsletters, a toll-free telephone number, a website, or scheduled workshops or seminars.
Buying a franchise may reduce your investment risk by enabling you to associate with an established company. But the franchise fee can be substantial. You also will have other costs: for example, you may be required to give up significant control over your business while you take on contractual obligations with the franchisor.”
Our value proposition should center around this – you are buying less risk, more potential and greater support and a bigger brand. Create the Collateral materials that represent this and SAY this to the potential franchise buyer.
Marketing and Lead Generation:
There are many options for franchise lead generation, the key is to get volume – typically it takes 75 – 150 leads to close a transaction. Luckily, with Internet marketing platforms, it is relatively easy to generate a large volume of leads. Here are the primary targets for franchise marketing:
- Web Marketing – Online Lead Generation Platforms – good lead sites will generate between 30-60 leads per month for a good brand.
- Franchise Broker Relationships – Franchise brokers will refer buyers to franchise systems for a commission out of the franchise fee. Brokers will not produce volume, but a good relationship can produce very qualified leads for a growing franchise brand.
- Franchise Tradeshows – There are shows in virtually every market around the country that allow franchisors to exhibit brands and meet buyers face to face. The two major tradeshow organizations in the franchise industry are the MFV and the National Business Opportunities Show Good franchise shows will produce between 50 and 250 franchise leads.
- Organic Traffic – Franchise buyers can be connected to your brand through consumer marketing. Things like consumer advertisements on print, tv, radio, napkins and anything else where the brand is presented can also have a “Franchises Available” tag on it. This can produce leads, typically not in volume, but high in quality – these are the best leads in that they came to you specifically for your brand.
You then need to have a defined sales process to manage the leads. Someone in your organization needs to screen the leads and be the caller – the person that makes first contact with the buyers and determines if the franchise makes a fit with the candidate.
There should be a second person to take the next stage of the sales presentation and operates as the Franchise Director. They will present the financials, the details and the serious elements involved in the franchise model.
The discovery day should be the point of closing the franchise transaction where designated members of the franchisor’s team meet with the prospect and present the franchise model.
For more information on how to franchise your business or franchise your brand, contact us.