NFA Franchise Consultants
1Nov/17Off

Franchise Sales Strategy

Franchise Sales Strategy: Success In Franchising

Stephen S. Raines
President, National Franchise Associates
Atlanta-based Specialists in Franchise Consulting & Franchise Sales Strategy

Franchise Sales Strategy

Franchise Sales Strategy

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.

If you looked at my September post, you will realize the importance we at NFA place on planning your franchise sales strategy.  It is critical to set your franchise sales goals and then create a plan for reaching those goals.

Along the way, you must be able to measure the effectiveness of your franchise sales efforts.  You must also be able to identify any problem areas in your franchise sales program so that these areas can be improved.

So, you have created your franchise sales plan, set your goals and decided how to reach your goals.  The next area you must address is who is going to spearhead your franchise sales efforts.  Typically, there are three options:

  • Using the franchise management team (usually the owners of the franchisor company) as the franchise sales force
  • Retaining an outside franchise sales representative, such as a franchise broker
  • Hiring an in-house franchise sales person

Examine the pros and cons of each option.  First, determine if the franchisor company is owned by people with sales ability.  The owners must also feel comfortable with and be available to implement the franchise sales program.  If they meet these three criteria, it can be advisable to utilize them, especially at the outset, because:

  • Often with a new franchisor, the owners are selling prospective franchisees on themselves since the new company does not have an operating history.
  • The more time spent with a prospect during the franchise sales process, the better the owners can judge if this is the person they want as the first franchisee.
  • The new company can keep the bulk of the initial franchise fee at a time when it is cash poor.

However, if the owners of the new franchise company are not available, able or willing to fill the franchise sales role, it may be best to either work with a reputable franchise broker or to hire a franchise sales person.

More on franchise sales strategy next time…


20Sep/17Off

Franchise Support Programs

Success In Franchising: Franchise Support Programs

Stephen S. Raines
President, National Franchise Associates
Atlanta-based Specialists In Franchise Consulting

Franchise Support Programs

Franchise Support Programs

In my over three decades of experience in franchise consulting, I am often asked “What makes one company succeed in franchising while another doesn’t?”

Rarely is there a single reason for success or failure in franchising. Here, I will use my experience in franchise consulting to address some of the factors that determine success.

From my perspective as a professional in franchise consulting, franchising your business is not particularly difficult. Literally thousands of companies have successfully franchised; and many have brought in specialists in franchise consulting to help.

It is important to properly structure the franchise program to reflect the specific business you are franchising.

Often, a person experienced in franchise consulting can save you time and costly mistakes by helping you make the right choices.

At NFA, one of the areas we take most seriously in franchise consulting is properly structuring the support programs the franchisor provides the franchisees.

As part of our franchise consulting services, we help the franchisor carefully plan the ways it will help its franchisee succeed.

In this planning stage, a professional in franchise consulting can be particularly beneficial. The questions the franchise consulting team can help you answer include:

  • What guidance are your providing in site selection and lease negotiation?
  • Will you supply sample floor plans or architectural plans?
  • What pre-opening training programs are you offering?
  • Will you supply any equipment, inventory or furniture to the franchisee before opening?
  • Will any franchisor personnel be on site to help open the business?

Your franchise consulting professional can also help you structure your on-going support programs for your franchisees, by addressing the following issues:

  • What sort of post-opening training will you make available?
  • Will you maintain field support staff? On what basis? What is their role?
  • What quality control programs are needed?
  • What information are franchisees required to submit to your office?
  • Is a technical support hotline for franchisees advisable?
  • Does the franchisee have to purchase any items from the franchisor on an on-going basis?
  • If a problem occurs, how can it best be resolved?
  • How can you provide these services cost effectively?

As you can see, a person knowledgeable about franchise consulting will be tremendously valuable. Your franchise consulting advisor can help you design workable programs that allow you to provide the assistance your franchisees will need to achieve initial and on-going success.

19Oct/16Off

Franchise Consultant

Why a Franchise Consultant Can Be Helpful

From my perspective as a franchise consultant, franchising your business is not particularly difficult.  Many thousands of companies have successfully franchised; and many have used franchise consultants to do so.

There are a number of well-defined steps in putting together a successful franchising program.  In order to succeed, you have to take the time to lay the groundwork and structure the program properly.  Often, this involves hiring an experienced franchise consultant.

At National Franchise Associates, our franchise consultants believe that initial planning is perhaps the most important element in creating a successful franchise program.  As franchise consultants, we work with our clients to carefully map out each detail of the relationship between the Franchisor and Franchisee.

It is in this planning stage that a franchise consultant can be particularly beneficial.

For example, the franchise consultant can help you answer such questions as what products and/or services will the Franchisee offer?  In what geographic area are you going to launch your franchise program?  What is your growth strategy?  How big a territory will an individual franchise be awarded?

How many franchises do you want to sell the first year?  Second year?  By year ten? What are the costs to the Franchisee?  What are the income streams for the Franchisee?  What type of attributes will your Franchisees need?  What payments must be made to the Franchisor initially?  On an on-going basis?  What training and support programs will be provided to the Franchisee?  Which Franchisor personnel will be responsible for implementing these programs?

The franchise consultant can further work with you to determine what products and/or services must the Franchisee purchase from you?  What quality control programs are needed?  How often will Franchisor personnel visit the individual franchises?  Is technical support needed, and, if so, how will it be provided?

All these details must be carefully considered, decided and spelled out in the required legal documents, the Franchise Disclosure Document and Franchise Agreement.

Here is where an experienced franchise consultant can be an invaluable help.

To contact an NFA Franchise Consultant, just call (706) 356-5637 or contact us here so that we can get back to you immediately!