Trying to Sell a Franchise? Avoid These Major Mistakes.

In order for brands to grow effectively, they need to take great care in avoiding these common pitfalls.

SPONSORED 2:14PM • 06/09/16

Franchising is dream building.

Maybe it’s not your dream, but it sure was somebody’s at some point. Franchise founders—and the legacies they’ve left—have changed the world. They’ve brought unique visions to life. They’ve turned consumer convenience into beloved concepts. They’ve fulfilled real life entrepreneurial opportunities.

Many of those franchisors share something else too: the idea that their concept will be simple to sell—or at least simpler than the one down the street. Who wouldn’t see the wisdom in investing in the ‘next big thing?’ Who wouldn’t want to be a part of the most exciting brand out there? Who wouldn’t want to begin walking down the sure path to success?

Unfortunately, as all too many of us know, selling is never as easy as it seems. The path to franchise sales can instead be wrought with pitfalls. Below are some tips from franchise sales veterans to help avoid them.

Connect First

All too often, franchise developers view themselves simply as salesmen. And, sales means turning and burning: more calls + more emails = success, right? Not in franchise sales, says Scott Thompson, Vice President of Franchise Development for Premium Franchise Brands, parent company of JAN-PRO commercial cleaning and sister residential cleaning brand Maid Right.

“The biggest pitfall I see is franchise sales people who are way too aggressive on the first or second call,” Thompson said. “They spend too much time trying to sell and not trying to connect. Whatever widget you’re selling doesn’t matter at the beginning. People buy a franchise for their own reasons. You should listen to those reasons first before you push anything on them.”

And, just because a franchise candidate shows interest doesn’t necessarily mean they will be a good fit for your brand.

“Sometimes franchise salesmen are drawn to the ‘pulse of the check’: if you have a pulse and a check for the franchise fee, they automatically see you as a good fit. That's not always the case,” Thompson said.

Speak Up, And Often

Franchise sales professionals need to ask the right questions. But, more importantly, they need to ask them at the right time, said Keith Dziki, Director of Franchise Development for Wireless Zone.

“Poor or ineffective franchise sales professionals miss the chance to build trust with a franchise candidate by not asking the hard questions and asking them at the right time,” Dziki said. “This typically happens because of a lack of experience or a lack of training. They need to ask poignant questions, and ask them at the right time. And they can’t shy away from asking about things like the candidate’s feelings about the investment level of the franchise and how they feel about the training and support they will receive. Leaving those unknowns and unanswered questions lead to a lower closure rate, and, even worse, not knowing the reason why.”

Don’t Hide

Franchising is a long term relationship, so it’s best not to pull the wool over a candidate’s eyes to try to make a sale, because it will only blow up in your face later.

“Be transparent and honest up front,” Thompson said. “Don't try to fit a square peg in a round hole by hiding things in the Franchise Disclosure Document or pushing some aspect of the company into a corner where they won’t see it. They're going to validate, whether it's now or later, so work with them. Help them to see how investing in your brand can change their life for the better, but don’t sugar coat the process.”

If there are skeletons in your brand’s closet, like lawsuits reflected in your FDD, chances are a prospective candidate is going to find them—and ask about them. Knowing how to answer those questions can mean the difference between a sale and missed opportunity.

“Know your FDD inside and out,” Thompson advised. “They're going to ask about it, so you better know it, and have an answer for each one of the issues in it. The end goal is not to make it seem as if you’ve never encountered a speed bump, but to make sure that your prospect feels comfortable with the way those speed bumps have been handled.”

Don’t Present

“Many franchise sales professionals are too dependent on a set franchise sales presentation,” Dziki said. “It takes a lot of time, money and effort to put together a great franchise sales presentation, and they definitely can help. But, they can also be problematic sometimes if you become too dependent upon the slideshow or bullet-points and you fail to connect with the person you’re speaking to. It’s a problem when you’re so wrapped up in the presentation that you no longer recognize lifeless signals in the franchise candidate you’re speaking to.”

Instead, Dziki suggests that franchise developers concentrate on the brand’s positive stories, and search for ways to better connect with what drew a candidate to the brand in the first place.

“Being passionate, energetic and dynamic about the material is more important than the material in front of the franchise candidate. In the end, you do want a great presentation. But, a franchise sales professional should never become so hooked on the presentation that they miss what is important to the candidate,” Dziki said.

Don’t Wait Too Long To Close

It’s hard to judge: when should you push to close the deal? Too soon, and you risk scaring the prospective franchisee away. Too late, and you could miss out on the opportunity—or worse, lose out to a competitor.

Err on the side of being urgent, Dziki advises.

“Many franchise sales professionals never insist on asking for the sale for fear of appearing to anxious or being a nuisance. If they truly believe in the brand, the investment level, and the success of the business, then they must learn to insist on asking for the sale early. Not practicing enough urgency can lead to events beyond their control, and can ultimately end up negating the sale. Franchise sales professionals should train, drill, and then re-train on ways to close the sale without appearing unprofessional or too forceful."

Trying to Sell a Franchise? Avoid These Major Mistakes.

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