Selling Your Franchise in 3 Simple Steps

Franchising is one of the best ways to grow a brand in today’s business landscape. 

And in a post-COVID world, where many people around the world are reevaluating what they want from their careers, the opportunity for franchising is ripe. For those looking to turn their small business into a flourishing chain, there is the question of where to begin. Though a lot goes into the process, here are three simple steps to start with. 

Evaluate Your Assets & Prepare for Sale

The first step in selling a franchise is to create a business model with strong and consistent sales. Prospective owners will want to see that a concept is capable of making money over a significant period of time.

“There needs to be proof of replication,” Brent Dowling, founder of franchise sales consultancy Raintree*, previously told 1851 Franchise. “Just because one store in one area has been successful doesn’t mean it will translate to success in other markets. Most franchisors aspire to be national concepts these days, so you need to see some evidence of replication.”

Not only should the franchise model be strong, but it is important to take a close look at the industry itself. Is it trending upward? Will it continue to grow? Or are you seeing evidence of economic decline? 

Once a business is ready to franchise, it's time to prepare for sale by creating a business plan that outlines the number of franchises desired to sell, which markets they are targeting for expansion, how fast they want to grow and more. It’s also time to create an in-depth Franchise Agreement and Franchise Disclosure Document. New franchisors should also begin working with a reputable support team to provide ongoing guidance to all new franchisees.

Market, Market, Market

Today, there are countless ways to market franchise opportunities to ideal candidates. To generate leads, franchisors can utilize tools such as social media, brokerage groups, franchise development sites, pay-per-click ads, franchise portals, trade shows and more. However, it is important to find a way of combining these tools in a way that works for your brand. 

Dowling also noted that, typically, a brand will have a network of customers and people within the business who can make great first franchise owners. Marketing to them can be a great place to start. “Put together an organic campaign, guerilla marketing and bring those first franchisees through the door,” he said. 

Telling a story is also an important part of marketing a brand. People want to see the human side of a business and what the culture is like. Stories from other franchisees, for example, can resonate with potential buyers and show them what franchise ownership can be like. 

Manage the Lead & Close the Deal

Once a franchise has received interest from qualified prospects, it is important to follow up to turn leads into sales. 

“Being responsive is probably the most important thing when you are managing leads,” Dowling said. One way to do this is through automation. Automating emails, texts and LinkedIn invitations can allow you to make sure you are following up regularly with information that prospective owners need. Franchisors can also use a CRM platform that allows them to know when a prospect is on their site. These can be used to then reach out to the candidate and engage with them.

Overall, it is important to follow a proven system that delivers on its promise when it comes to selling a successful franchise.