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The Franchise Sales Process

This article is still accurate, but we have recently published The Ultimate Guide to Franchise Sales, which you may find more informative.
The Franchise Sales Process
I titled this article the franchise sales process, but this process is more accurately referred to as the mutual evaluation process. Semantics is the first step to a correct mindset about this process. You see, if you are trying to “sell” your franchise, you may end up with the wrong candidates in your system! As any experienced franchisor can tell you, one “wrong” franchisee can wreak havoc in an otherwise strong system. For a young franchisor, if one of your first franchisees is not a good fit, they can devastate your system and stunt your growth for years to come. So lets agree to call the franchise sales process a “mutual evaluation process”, shall we?
HAVING A PROCESS
The first key to a successful mutual evaluation process is to have a process! While this may seem obvious, we have interacted with many young franchisors who simply answer the phone or call the leads and talk about their brand, send out a Disclosure Document when they “feel” like the time is right, and basically provide a reactive sales experience to the candidate. The problem with this is two fold.
You are the expert
You are the expert in this business. You know (or should know) what information your candidate needs to make an informed decision in a timely manner, and how they get that information. If you are simply reacting to what your candidate is asking for, you likely will have a longer mutual evaluation process, and may well lose your clients due to lack of comfort in your brand.
You need information
Your candidate is […]

Why Oursource Franchise Development

Why outsource franchise development
You may be wondering “why outsource franchise development”. The fact is that, just like any other skillset, franchising takes years to perfect. Chances are if you have spent years perfecting your business model, then you haven’t spent years perfecting ours; franchise development. There are several reasons why outsourcing franchise development makes sense.
Keep your eye on the ball
When learning a new skill, other skills may suffer. When starting a new business, other businesses may suffer. Franchising is a new skill and a new business, but it doesn’t have to make your other businesses suffer. Keep your eye on operational excellence and delivering the best possible value to your franchisees. Let your outsourced franchise development team bring them in.
Save personnel costs
A good franchise sales person will likely cost you close to $100K a year or more. A franchise executive may be ½ again as much, or even double. For a fraction of this cost, you can have access to a staff of executive-level franchise personnel. With the right outsourced franchise development team, you should receive not only franchise sales support, but also ongoing operational consulting.
Economies of scale
An outsourced franchise development company likely represents multiple franchisors. As such, they most likely have preferential buying and placement arrangements with leading franchise portals, publications, and shows.
Who do you chose?
So now you know the answer to “why outsource franchise development”! Do you think outsourcing is the right choice for your company? Great! Now the question is who to outsource franchise development to? Click here to read our article Who to outsource franchise development to. Also, if you want to learn more about how to franchise a business, check out our article on that topic or reach out!

Who to Outsource Franchise Development to

Who to outsource franchise development to
After you have made the decision to outsource, the next logical question is who to outsource franchise development to. If you haven’t already made that decision, check out our article Why outsource franchise development to decide if outsourcing is for you. To find the right company, here is what you should be looking for.
Experience
This is likely the most important consideration when outsourcing franchise development. Many outsource companies have little or no real world experience as franchisors, franchisees, or small business owners. We recommend finding a company where the leadership has experience in most of these areas, and preferably all three.
Franchisor Experience:
This lets them understand what it is like to be in your shoes. If they have made the decisions that you are faced with they can give you actual advice instead of “theory”.
Franchisee Experience:
If your franchise development team has someone on staff with franchisee experience, they know what it’s like from the other side of the isle. They can help guide you towards decisions that support both the needs of your system and the needs of your individual franchisees.
Small Business Owners:
Going into business for yourself, either independently or as a franchisee, is a major step in life, and has long-lasting consequences. As such, it can be scary! When your franchise development team has this experience, they can help guide your prospect through this decision-making process because they understand the unspoken fears.
Results
Experience is nice, and necessary, but so are results. When you are selecting what company to outsource franchise development to, make sure they are a results-oriented company with a proven track record. That brings us to the next point:
Reputation
Similar to results, the company’s reputation is equally important. Talk to […]

How do I franchise my business?

How do I franchise my business?
This is the question we hear a lot, and most likely why you are on our site right now. You are wondering, “How do I franchise my business”? The majority of our site is really dedicated to showing you how to franchise your business, but we wanted to lay out, on one page, a simple answer to this question. Of course its not a simple answer, feel free to check out our book on franchising our blog posts, or why franchising makes sense.

So, in short form, here is the answer to the question “how do I franchise my business”?
Become an expert at your business.
If you are an owner operator, you likely often run your business reactively; when issues arise you react to them. Your current business is a sum total of those reactions. When it comes time to franchise your business, however, you have to proactively understand how your business runs. You have to know what situations a business owner in your field might encounter, and how to handle them. The first step when wondering how to franchise your business is to become an expert in your business.
Document Everything
When you ask, “how do I franchise my business”, what you are really asking is “how do I teach other people what I know to be successful in the space that I am in”? The simple answer to that is document everything. You should begin paying attention to what you and your employees do on an hourly, daily, weekly, and monthly basis and documenting every step. Don’t worry about the format, for now, just write it down.
Do a franchise feasibility study
You may wonder why a franchise feasibility study is so far […]

Other Articles

Our executive team are experts in franchise development, franchise marketing, and small business. As such, our writings and articles about how to franchise a business or how to run a run a successful franchise development team are often published in leading industry magazines as well as other online knowledge bases. Some of those, such as Why Become a Franchisee, can be reproduced in full. Others are basically works-for-hire, and cannot be reproduced here in full, but our readers may find them of interest, so we decided to provide one page, with a synopsis of each article and a link. All of the articles linked on this page were written for Demand Studios.