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Validation, the key to successful franchisee recruitment

Franchisee Recruitment
Validation is something you should be thinking about even if you are just now considering how to franchise a business. You might think that you are responsible for selling your franchise, or that you employ the people responsible for selling your franchise, but that is simply not true. The people that impact your franchisee recruitment the most are not your salespeople, they are your existing franchisees.  They are your salespeople.  If they are happy, you will sell franchises, and if they aren’t, you won’t.

Sure, there will always be one or two people out there who you can “talk into” buying a franchise, because the concept you have happens to be what they have dreamed about their whole life, but most people make their investment decision based largely on what they hear from the franchise network.

Validation is even more important to a start-up franchise than it is to a mature franchise. When you have 100-200 locations or more open, and 2-3 franchisees that are unhappy, the impact is not nearly as damaging as if you only had 5-10 franchises open with 2-3 that were not happy with the system.  Furthermore, a start-up typically will not have any name recognition to lend it credibility; the only credibility is what comes from the franchise network.

Of course, most franchisors know that validation is important; they just don’t know what to do about it or even if they have great or poor validation. There are a few key steps a franchisor can take, however, to measure validation, find out what is helping and hindering it, and quickly improve their system-wide validation with minimal investment.

Please note that there is one killer for validation that we cannot help; an unprofitable […]

Why Franchising Your Business Makes Sense

Why Franchising your business makes sense
Franchising is a unique method of growing your business; it truly is a merger of large-organization efficiency with small-business, entrepreneur spirit and motivation. Of course we talked a lot about the fact that not every business should franchise, but if yours is right for franchising you will experience an awesome wealth-producing machine. So lets talk about why franchising your business makes sense, and the benefits of franchising.

the benefits of franchising your business
If you are wondering what the benefits of franchising your business are, here are just a few:

Less Capital Requirements
Fuel the growth of your business through the capital invested by each individual franchisee.
Add Additional Revenue Streams to Your Business
Franchise Fees
Royalty Fees
Advertising and Marketing Fees
Sales of Company Branded Products
Sales of Supplies
Training Fees
Sales of Promotional Products
The Ability to Expand Rapidly
Opening multiple locations at the same time allows you to obtain a large footprint quickly while putting your company a step ahead of the competition.
Gain Quality Management in Additional Units and Maximize Unit Revenue
Having an owner running the business usually insures that there will be a level of service and dedication that typically can’t be found in an employee. Franchisees have a vested interest in the success of their business and with their investment at risk, franchisees should be much more motivated than an employee.
Larger Advertising and Marketing Budget
Many franchisors institute a national advertising fund. This requires the franchisees to contribute a percentage of their gross sales to a fund used to increase advertising, name recognition, and the overall value of the business.
Branding
Opening units throughout the country will increase Brand awareness adding value to […]

Why become a franchisee?

This article was featured at Franchising.com. Check it out here: http://www.franchising.com/articles/why_become_a_franchisee.html

Why become a franchisee? Well, if you are looking to start your own business, an excellent way to minimize risk, while increasing the odds of succeeding is to consider opening a franchise. There are many options available, such as; retail chains, fitness gyms and even pet franchises. Whatever your passion is, there is likely a franchise business that will allow you to do something you love, while still making a profit!

When you are researching what type of business you would like to own, it is important to evaluate all of your options and consider the advantage of launching a franchise. Listed below are some of the many advantages to owning a franchise business.

 

Spend less time getting started. The difference between starting a franchise business compared to starting a business on your own is, the franchisor steps in to help you expedite the start-up phase by providing you with a plan and helping you make crucial decisions such as site location, hiring new staff members and promoting the grand opening. The franchisor has an invested interest in seeing your business succeed, and will draw upon past experiences in starting other operations to help get your business off the ground.
Benefit from national brand recognition. Some of the most significant benefits of owning a franchise business are brand awareness and national advertising power. By joining a franchise that is already well-known and respected, you don’t have to spend as much time educating your target market on what your company is all about. In addition to launching national advertising campaigns, franchisors help you establish an effective marketing plan and provide advertising materials to help make your […]

Are you ready to Franchise your business?

Wondering how to franchise a business? Before embarking on a franchise development program you’ll want to determine if your business has what it takes to be a viable investment opportunity for investors and if you are ready to franchise your business. Listed below are a few questions that one should carefully consider prior to moving into a franchise model. There are many factors to consider when deciding if franchising is right for your business, however positive responses to the following questions are a good indication that your business might be ready to start franchising.

Is there more than one location currently in operation?
Is the current business operation a suitable prototype for the franchise model?
Is there a system of processes and procedures currently in place for the business?
Has the business been open and operating for more than two years?
Are the profit margins sufficient to institute a percentage of the gross sales to be paid to the company in the form of a royalty and continue to produce a profit?
Are there proprietary systems, products or services in the operation of the business?
Is the business unique in any way or one of the few within its industry?
Are there economies of scale related to purchasing, advertising or administrative functions that will increase as additional locations are added?
Can others be trained to duplicate your existing system?
Is the current business profitable?
Have you had individuals or investors express interest in opening additional locations for the company?

 

Franchise Beacon chooses to work with a select few companies each year to insure that each one of our clients receive service that is second to none, so it is imperative that the company encompasses the following:

The concept […]

Capitalizing on Your Facebook Following

I you read my last blog post, you now know how to get 1000 people to like your Facebook page in a year! That is 1000 people who shop in your store, and now you can market to them for free. Now what? What does capitalizing on your facebook following mean, and how do you do it? We all know that good content is the key to social media engagement, but what IS good content?
Good Content
Good content is content that your Facebook fans read and share. If you can get your fans to consistently share your content, your fan base will grow exponentially.   Here are some keys to good content.

Use images, but mix it up. Images are key to posts, but don’t use them every time. Most of your posts should have images or links, but don’t be afraid of an occasional text-only update.
KISS (Keep it Simple, Sir). Posts with less than 80 characters have a 27% higher rate of engagement, yet people often think they need to write a novella for an effective post. Keep it short, simple, and fun. Which brings us to
Make them laugh (or cry or go WOW). People love to share humor. Something that is truly funny is most likely to get shared. Barring that, a touching story, or something that they find interesting and think their friends will, too, is more likely to get shared.
Engage. Ask your customer’s questions. Have them vote for your next in store promotion or new product line. Ask them what their favorite one of your products is, how old they were when they first started using your products, or other interesting and industry-relevant questions.
Tell them what to do. […]