In over 30 years of franchise consultant experience, people frequently ask me, “Why does one franchise sales program flourish while another franchise sales program disappoints?”
There are many causes for succeeding or failing in your franchise sales program.
In this franchise consultant blog, I will address another Frequently Asked Question about franchise sales programs and franchise consultants:
Q. How do you sell franchises?
A. Usually, you have three choices for the party responsible for your franchise sales program:
- Designating one or more of the owners of the franchisor as the franchise sales team,
- Retaining an outside company or sales person to perform your franchise sales, or
- Appointing or hiring a staff person to perform inside franchise sales.
There are pluses and minuses to each of these alternatives for your franchise sales program. At the outset of your franchise sales program, if the owners of your business are willing and able to perform the franchise sales function, they are often the best solution for the following reasons.
- Being the people most knowledgeable about the franchise company may put them in the best position to sell it.
- In the beginning of franchise operations, the franchisor’s owners are essentially convincing others to invest in them. Personally filling the franchise sales role puts these owners in the best position to earn the prospective franchisees’ trust and respect.
- Unless its first few franchisees are successful, it is virtually impossible for a franchisor to sell more franchises. By allowing the franchisor’s owners to spend more time with prospective franchisees, they can better judge if these are top quality candidates.
- This option keeps your franchise sales costs lowest at the time when the company has little revenues.
- Unlike many outside brokers, the owners can concentrate on franchise sales for their company alone.
If the owners of the franchise company are unwilling or unable to perform the franchise sales function, the franchisor can always bring in an inside franchise sales person or outside franchise sales broker.
(More in my next blog)