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Best Practices at Franchise Trade Shows
A franchise trade show can be a great place to network and court interested investors.
Networking seems to have become a played out buzz word thanks to social media sites, but it is an invaluable tool in the business world. Exchanging a few business cards or shooting the breeze with the competition can be a great way to help generate new ideas for a business and improve on old methods. These types of interactions can happen anywhere, but it may increase tenfold at franchise trade shows.
When you hear the term trade shows, you may imagine rows of tables set up in a hotel conference room where business reps are earnestly handing out informational pamphlets. The trade show has evolved since those days, and today, it’s an integral part of the franchise world. Jason Parker, co-founder and president of K-9 Resorts Daycare & Luxury Hotel, said the advantage of attending trade shows is that they give you the opportunity to market your brand in a somewhat grassroots manner by actually talking to people.
“Some benefits include getting in front of people who may be considering a few of your competitors and you now have the face time to explain why your brand is far superior,” Parker said. “It allows to really communicate how passionate they are about their business or the business they work for. Lastly, you can expose your brand to a large amount of people for a relatively low investment.”
One of the key components in attending a trade show is to entice prospective investors to take a leap with the company. But this process is a delicate dance. Brands should be giving prospective franchisees an equal amount of time to explain their business model, promote their brand and ultimately figure out if the person they are talking to loves the business. In a crowded showroom floor, packed with tons of different investors, it may be tough to give every single interested person a proper sit down. Van Ingram, Vice President of Franchise Development for fast-casual Mexican franchise Taco John’s, said trade shows are a big sea and there are many predators in it.
“I believe a trade show is an excellent option for a prospective franchisee to be able to see and visit with multiple brands in one setting,” Ingram said. “In most case, there are competing brands in multiple categories so the prospect can compare and contrast while meeting with the individual brands. From trade show leads, I have completed deals with new investors and proven franchisees.”
Karen Young, a franchise recruitment manager for Sport Clips*, echoed that statement, saying shows are a great way to find new investors, but there are plenty of smart entrepreneurs who attend and they never have trouble getting someone’s attention.
“When we engage in a conversation with a potential franchisee, our goal is to help them be more informed about the Sport Clips business opportunity and give them the tools they need to evaluate franchising on a much more accurate basis,” Young said. “We are confident that savvy investors will find us and when we do, we let them know that our goal is to establish a common understanding and ensure our passions are aligned so both parties can decide if it’s a good fit for Sport Clips.”
She went on to say one of the best ways to attract investors is to make your booth stand out. It is commonplace to have pamphlets on a table, but in order to make a brand stand out; you may need to do a little peacocking. Young said when the brand attended the Multi-Unit Conference in 2014, they had stylists at their booth demonstrating the brand’s MVP haircut experience. And a little swag goes a long way to courting interested parties too, Sports Clips was handing out selfie sticks to all passersby’s.
Once you have reeled in potential franchisees, you need to get across to them what makes your business different and scan them to see if they would be interested in investing. Dawn Abbamondi, a marketing and business development consultant for SMB Franchise Advisors*, said in the maybe five minutes who have with a potential candidate, you need to get your message across in a detailed and concise manner.
“Brands should focus on a number of areas, and I recommend three primary topics. One is the points of differentiation, another is what the brand stands for and why choose us over any other franchise brands in the industry and, finally, the investment figures including costs, ongoing expenses and their Financial Performance Representation; if not the actual numbers, then the information that they offer one for evaluation,” Abbamondi said.
Enticing possible investors isn't the only thing going on at these shows. A franchisee or franchisor is only as good as the training they have. There are always new developments in the franchise world, from training methods or ways to increase sales. Trade shows can provide workshops that can help fine tune a franchisees skills in running their business better or franchisors interacting with new marketing trends.
*This brand is a paid partner of 1851 Franchise. For more information on paid partnerships please click here.
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