In my over three decades of experience as a franchise consultant, working in franchise development and franchise sales, I am often asked, “What makes one company succeed in franchise sales while another doesn’t?”
Rarely is there a single reason for success in franchise sales.
Here, I will examine one of the many factors that can help Franchisors create a winning franchise sales strategy.
There is an old saying in business, “Fail to plan, plan to fail”. Nowhere is this adage truer than in franchise sales.
If you do not structure your franchise sales efforts, you will quickly lose control.
Remember, if your first few franchisees fail or are unhappy, it will be virtually impossible to sell more franchises.
We cannot stress strongly enough the importance of focusing on the success of your initial franchisees. Part of this success is selling to the right people.
When planning your franchise sales strategy, ask yourself the following questions:
- In what geographic area do I want to sell my first few franchises?
- How many sales do I want to close my first year? My second year? My fifth year?
- What qualities and skills will my franchisees need to succeed?
- Will my target prospects change over time and, if so, how?
- How can I market most effectively for franchisees?
- What are the steps in the franchise sales process?
- Who is responsible for each step?
- How will we conduct each step in the franchise sales process?
- How will we get from one step to the next in the franchise sales process?
- If a desired prospect loses interest, how can I jump start the process?
- How will I qualify a prospect before closing?
- Under what circumstances should I say no to a prospect?
- What is the most effective way to present my company’s story and benefits?
- In the franchise sales process, how do we position the company against any competitors?
- How can I judge the effectiveness of my franchise sales and marketing programs?
- How can we track the sale from first point of contract to closing?
- Once we close a sale, what steps should occur next and in what order?
- How much time will we need to devote to getting a new franchise open?
- After it opens, how much time should we allocate to assisting the franchisee?
As you can see, a casual approach to franchise sales is likely to fail. The more carefully you plan out the franchise sales process, the more effective you will be both in franchise sales and the overall success of your franchisees.
More on franchise sales next time…