Growth Club
1851 Growth Club
Looking to Speed Up Franchise Sales? Follow These Three Steps
Franchisors can use their FDDs, target markets and unique recruiting tactics to help prospective franchisees sign sooner.
It’s no secret that franchisors are always on the lookout for the next big business opportunity. Expansion and growth are key parts of the franchise industry, and a brand’s ability to break into new markets ultimately determines its long term success.
Franchisors often turn to the same tactics to increase their franchise sales— targeting multi-unit owners and creating enticing marketing campaigns are both sure-fire ways to drum up interest in prospective franchisees. But they aren’t the only ways franchisors can boost their unit sales.
Here are three very important ways franchisors can speed up the sales process:
1. Have a strong FDD
No document is more important to the franchise sales process than a brand’s Franchise Disclosure Document (FDD). FDDs tell prospective franchisees everything they need to know, from investment fees to potential and average unit earnings. That’s why it’s crucial for FDDs to contain accurate and recent information.
When candidates are able to look at the most recent and comprehensive data right off the bat in a brand’s FDD, they’re more likely to sign on to open their own unit sooner. One brand that prides itself on having the most accurate information in its FDD is Fresh Coat*, a leading residential painting company.
“In order for prospective franchisees to make the best business decisions they need to be working with accurate information. At Fresh Coat, we’re constantly working to make sure that our FDD has the most recent numbers and reports. That means that right now, our prospects are working with information from 2015, not old information from the year before,” said Tara Riley, president of Fresh Coat.
2. Target the right cities
Franchisors also need to make sure they’re targeting franchisees in cities where the brand will fit in. It’s important for prospects to know that when they agree to open a unit, the brand is confident on a corporate level that the location will succeed. That confidence is a major selling point for future franchisees, and encourages them to sign on the dotted line.
Maid Right is an example of a brand that carefully considers new locations before recruiting franchisees. Scott Thompson, vice president of franchise development for Maid Right and JAN-PRO’s parent company Premium Franchise Brands, says the brand selects cities specifically based on growth potential.
“We don’t randomly decide to bring the Maid Right brand to a new city. Before we narrow in on our target markets, we do complete demographic breakdowns of the populations to ensure our franchises will be successful,” said Thompson.
3. Be creative when recruiting
Future franchisees who are serious about investing may be hearing similar pitches from a variety of brands. That means franchisors need to do their best to separate their business plans from the crowd. One way franchisors can do that is by creating unique offers for candidates.
WORKOUT ANYTIME*, a major player in the independent fitness segment, is currently experimenting with new recruiting tactics. The brand is currently looking for a franchisee to open up a gym in a pre-determined location.
“By identifying the real estate before finding a franchisee, we’re kind of doing things backwards. But doing it this way ultimately allows us to open up in a state like West Virginia sooner than we anticipated because the location has already been approved. It gives our future franchisee more time to build a business and establish the brand in the community,” said Randy Trotter, vice president of development for WORKOUT ANYTIME.
When a franchisee is given the opportunity to make a different kind of investment, it may inspire them to hop on board faster than they would have otherwise. That helps franchisors expand their businesses and add to their already growing networks of franchise partners.
*This brand is a paid partner of 1851 Franchise. For more information on paid partnerships please click here.
MORE STORIES LIKE THIS
NEXT ARTICLE
Featured Franchise News
Featured Brand News
