In order to franchise your business, there are several elements to a franchise development program which must be in place prior to launching a new franchise system. 1. A good business plan that itemizes the key elements of the franchise expansion model and how the franchise program will take shape. The plan should be as realistic as possible and take into account conservative growth and higher costs than expected to support the franchisees. 2. In order to franchise your business effectively, you should have a good understanding for the marketplace, and the franchise concepts you will be competing with. Know there fee structure and key points to sell against when speaking with potential franchise buyers. As franchise organizations grow and brands are developed, franchise companies attract a large amount of potential strategic partners. A strategic partner is an outside organization that aligns itself with a company in order to benefit both parties involved. This could be a marketing firm that discounts work or provides free branding work to a franchise system in return for an exclusive relationship with all of the franchisees within the system. Or a commercial real estate firm that provides discounted leases based on a preferred referral from a franchise system. In the business of duplicating concepts, the process of marketing and selling the model is new and unique to most. It could be compared to dating, fishing, hunting and many other catching metaphors, but from someone who has actively marketed and sold franchises for the past ten years, it comes down to a few key factors as to what separates the successful franchise marketers from the unsuccessful ones. The first point to be aware of is that franchise sales and franchise marketing takes a budget. In 2010, I have personally been involved in 67 new franchise sale transactions...3 of those came to my clients through referrals or contacts they had prior to franchising their business. The rest of the franchise sales came through good old fashioned advertising. Yes, that's right, you do have to advertise to attract good franchise prospects. What I tell my clients in deciding what to budget for franchise marketing activities is twofold. One, budget something up front for a brochure, printed materials, a good website and other program pieces that are necessary to attract buyers. Then on a monthly timeframe, start out with a budget of $500 up to $1,500 per month for lead generation activities. Do not go into franchising without some kind of a budget for marketing the business. Maybe you have heard the term "takeaway sale"? This is a term that describes a sales process that is counter intuitive to most sales processes in that you are not pushing the prospect to buy your service or good, you are almost telling them that they cannot have it. I have found that by employing this sales tactic in franchise sales, it accomplishes two things. One, that the franchise organization selling the franchise will become less pushing on "Selling Franchises" and avoid situations where a franchise was sold to the wrong candidate. Two, that the franchise buyer tends to want what you wont give to them when you are not pushing the sale on them. It's funny, people want what they can't have....franchises included. Deciding to join a franchise family is a great opportunity with many benefits. Many of these benefits you will not receive if choosing to open your own independent business. You will receive training on the franchise system, you will be part of a big network that can provide assistance to you when needed, and you will be investing in a business that has a higher rate of success than an independently owned business. But another great benefit you will receive is a marketing advantage! Not only would you be buying a well known name or brand, but should receive additional marketing for your franchise! When you decided to purchase a franchise you will need to consider the marketing plan that the franchisor provides. A marketing plan outlines the specific actions you intend to carry out to interest potential customers and clients in your product and/or service and persuade them to buy the product and/or services you offer. So, this is something that the franchisor will provide per your franchise contract with them. The marketing that the franchisor provides is a big reason why franchisors have a higher potential for success, so if you don't agree with the plan or there isn't one look for a different franchise. Marketing for your franchise is an important facet to running your franchise successfully. You will want to ensure that your franchisor offers a great marketing plan that will help generate business for your franchise. The franchisor will have a fee that you will pay for marketing. Since, this is something that you will be paying for, so make sure you get the most for your money. A good franchise marketing plan should be developed by franchise consultants who have worked in franchise sales and franchise marketing themselves. In developing a true marketing program, franchise consultants need to have lived and breathed franchise sales themselves. The process of marketing and selling a franchise is unique. Although Sales is Sales, the process of qualifying and developing franchise candidates is much different from any other marketing and sales process.
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