4 Basic Questions to answer before you begin a franchise sales effort
WHO, WHAT and WHERE and WHO, WHAT and WHERE and HOW MUCH
Once you have established your franchise and completed the documentation process it time to start selling your franchise. The selling effort will require a marketing effort to generate leads to close deals. Before your sales effort begins you should establish WHO, WHAT and WHERE and HOW MUCH.
WHO- The profile of your potential franchisee. Who are they? Do they require certifications, education, initial investment, experience? Who is going to sell your franchises? Will you use direct sales or the franchise broker networks?
WHAT- As defined in the franchise agreement- What are you selling single units? Multi-units? Is the franchise model the replication of your existing units or a variation?
WHERE- It’s easier to franchise locally for logistical reason, but do you want to share your market with a franchisee? Do you want to keep your local market and franchise outside? Do you want local, regional or national expansion?
HOW MUCH- How much are you willing to invest in marketing? How much time can you allocate to the sales effort?
As you can see the 4 basic questions, generate lots more questions. All of these questions and more need to be answered before yours begin your sales effort.
It’s vital that your sales effort has lots of lots of leads and lots and lots of time to close those leads. The best case scenario of a franchise lead closing is 45 days; it is very unlikely that your first leads will not close that fast. Be patient, it takes time to close deals, but the return on one closed deal can be very fruitful. Most franchise agreements are 20 year deals; 20 years of royalties will add up very nicely.
So get these questions answered before you begin your path to success. Plan they journey by understanding the questions and answers to franchise sales.