Don't Get Fooled by These 10 Underhanded Sales Tactics

Purchasing a franchise is a high-stake investment. That’s why it is crucial to understand every step of the investment beforehand. 

It’s also important to avoid disingenuous sales tactics used by those who are just looking to make a quick sale. Here are 10 to watch out for before you buy a franchise. 

Guaranteed Success

Be wary of anyone who assures you that you will have guaranteed success while attempting to sell a franchise, says Entrepreneur. Owning a business takes effort, unwavering commitment and thorough research. If someone is making unrealistic promises they cannot fulfill, they are probably looking to make a quick sale. 

High-Pressure Sales

One of the most commonly encountered strategies for brands trying to make a quick sale is the high-pressure tactic. This is when the salesperson creates a sense of urgency, making you believe that if you don't act immediately, you'll miss out on a fantastic opportunity. If you find yourself in such a situation, it's important to take a step back and reflect on the reasons behind the pressure you're feeling. 

Appealing to as Many People as Possible

Another quick-sale strategy to watch out for is when franchises target a wide audience to maximize the chances of making a sale, such as a seminar. These individuals may not be concerned about whether the franchise is suitable for both the franchisee and franchisor, nor do they care about who purchases their franchise. 

Promises of Less Time and Effort

Although the concept of earning substantial income with minimal effort is appealing to many, it is not realistic. If representatives assure you that becoming a franchise owner will automatically generate additional income in your spare time, they are employing a quick-sale tactic.

Limited Due Diligence Options

A crucial step in the process of due diligence is reaching out to other franchisees. That’s why you should exercise caution if the franchisor insists that you contact only franchisees from an approved list. When a franchisor steers you toward their handpicked franchisees, their hope is that you will be satisfied with those limited interactions and refrain from reaching out to other franchisees. 

Personalized or New Models

Creating a sense of exclusivity and personalization is a highly effective sales tactic in the business world. However, when a franchise salesperson attempts to convince you that a high failure rate doesn't apply to you because you are superior to other franchisees or because they have introduced a new business model, don’t buy it. 

Too-Good-To-Be-True Claims

Beware of salespeople consistently boasting about the impressive earnings of their franchisees or the substantial profits generated by the business. They might just be interested in making a quick sale at your expense. 

Describing a Franchise as a “No-Brainer”

If salespeople are trying to persuade you that purchasing their franchise is the “obvious choice,” reconsider. Never solely depend on an individual whose role is to sell you a franchise. 

Lack of Transparency

Watch out for franchisors who only focus on sales, and are not transparent about certain fees or expenses. They may downplay or omit information about ongoing royalty fees, advertising fees, mandatory equipment purchases or other costs that can significantly impact profitability.

Hidden Contractual Terms

Franchisors may also be hiding overly restrictive terms within the franchise agreement. These terms can limit franchisees' flexibility and ability to make independent business decisions. 

A good franchisor will want to make a deal that works for both parties. Keeping these 10 sales tactics in mind gives prospective franchisees the upper hand when it comes to finding the right franchise and knowing which ones to avoid.