Be prepared for the relationship to change once you’ve sold a unit to an individual. You will want to build a stronger relationship with your franchisee now that they have purchased a unit from you. Mutual trust and respect must be shown as the individual who bought your franchise just spent a lot of money on your concept with the little faith they have from the few times they met with you. The faith an individual puts in a franchisor is even greater the smaller the franchise is.
After the signing of the franchise agreement, you should already have it in your mind how much attention you plan on spending with each new franchisee. This doesn’t have to be set in stone now, but you should know how much time you want to devote to new franchisees and how to balance that out with selling franchises. You want to show that you support them and will be there when they need it, but you don’t want to get in the habit of spending all your time at one franchise location.
The problems with spending too much time helping one franchisee as they start are:
- You’re giving a false representation of the regular assistance they will have.
- They may become more reliant on you than they should be.
- Your franchise sales may suffer drastically.
- Your franchise improvements will suffer.
- You lose time you could have invested elsewhere.
- You will have a harder time balancing franchisees as you start opening up more than one franchise at a time.
- If you’re the one investing time in your franchise and not your franchisee, when you leave, so will the success in the location.
If You Make Mistakes When Selling Franchises
If you happen to make mistakes when you’re selling our franchise companies, approach the mistakes objectively. No franchisor is perfect when they start out. The difference between the franchisors who fail and the ones who succeed is that the ones who fail do not know how to pick themselves back up. They take a mistake or a roadblock as a reason to stop instead of something pushing them harder to succeed. Franchisors who meet success see mistakes, accidents, or problems with expansion or their systems and cash in on those as opportunities to better their processes and their companies.
Join the winning franchise companies by facing mistakes head-on with an objective mind and a will to succeed. A big name brand might not be as unachievable as it may seem.
Bottom Line on Selling Your Franchise
As you prepare to sell units for your franchise, you need to plan out the concept for your franchise companies, marketing, and who your target franchisees are. Remember that anyone can sell a franchise. The hardest part isn’t finding buyers, it’s finding the good buyers and maintaining a strong brand with every new location you open. The first five years of franchising will almost always be the hardest.
To better insure success for the sale of your franchise companies, consider franchise development plans to:
- Build a strong system slowly over time. Create new franchises close to your headquarters when you start expanding so you do not lose resources trying to maintain franchise startups that are far away.
- Consider hiring franchise brokers to help you sell franchises from the get-go.
- Don’t forget about the helpful resources that franchise masters are when it comes to quick expansion.
- Don’t rush into the process.
- Sell franchises only to worthy franchisees who fit your criteria.
- Talk to your franchise consultants, create a review committee, and compare notes with those you believe are reliable sources and good judges of character and franchise potential.
Read More From the Franchise Your Business Series 7
- Selling Your Franchise Among Franchise Companies
- Franchise Companies Must Be Choose with Applicants
- Doing the Prep Work for Your Franchise Companies
- New Franchisees in Your Franchise Companies
- “Good” Franchisees for Your Franchise Companies
- Franchisees That Fit Your Franchise Companies Perfectly
- Reaching Out To Bring People to Your Franchise Companies
- Joining Franchise Companies is a Tough Decision to Consider
- Personality Profiling for Franchise Companies
- Including the Review Committee of You Franchise Companies
- Better Communication in Your Franchise Companies
- Questions Will Be Asked About Your Franchise Companies
- The Master Franchisees in Your Franchise Companies
- Financing Your Franchise Companies and Watching Budget
- Greeting New Startup Challenges in Franchise Companies