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The Franchise Buying Rules Have Changed

Written by: Flo Schell

Article Overview: It used to be that franchisors would advertise wisely, talk only with prospects that proved a high level of interest, and award the franchise to the most able. That still happens today, but the rules of the game have changed; the franchising world has entered The Intention Economy.

The Franchise Buying Rules Have Changed

It used to be that franchisors would advertise wisely, talk only with prospects that proved a high level of interest, and award the franchise to the most able.

That still happens today, but the rules of the game have changed; the franchising world has entered The Intention Economy.

Franchisors (the sellers) are used to seeking out qualified prospects (the buyers).

And while they still do, the worldwide web has changed the game considerably.

Now savvy prospects (the buyers) are seeking out the best qualified franchisors (the sellers).

We might say they have the upper hand.

They’re shopping intentionally.

Here’s how it goes; they shop the web, find the franchisors that seem to have what they want, and then selectively communicate with those franchisors.

They narrow their search to 3 or more franchisors.

They might say, “Here’s what I need and here’s what I want. What can any of you franchisors do for me?”

And then they choose the one franchisor that offers them the best fit.

In essence, the buyers decide who they will purchase from.

*Doc Sarles, a savvy technology watcher, says this change in the buyer- seller relationship is a result of something that he calls The Intention Economy.

Buyers of the future, he says, will pursue sellers, rather than the other way around.

But the truth is this: The Intention Economy is no longer a future trend; it is already alive in the franchising world.

So what does that mean for franchise sales professionals as they adapt to this economy?

It means that now, more than ever, a successful sales process is more about connecting and clicking than ever!
And the sales professional who wins is the one that the prospect connects with and trusts the most.

Because in the end, while a prospect is buying your concept, he is just as surely buying your people!

So, franchise sales teams… take a moment now to measure your Click IQ!

1. Building relationship is my #1 objective with a prospect and I spend quality time on this

2. I strive to create a specific connection (magic click) with a prospect in the first 15 minutes of the communication

3. I use that magic click to build a strong foundation for my ongoing relationship with that prospect

4. I strive to create a long term relationship based on trust

5. I act as a strong partner as we move through the ups and downs of the sales process

6. I confront problems with ease

7. I use problems to strengthen the relationship

8. I know that the relationship we have developed will get us through the landmines that are sure to occur

9. I follow up consistently and positively

I0. I close cleanly and surely

The more yeses you have…the higher your ‘win’ potential!

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Article Tags: best fit, buyer seller, economy, franchise sales, franchisor, future trend, intention, iq, objective, prospects, quality time, relationship, rules of the game, sales professionals, sarles, successful sales, truth, worldwide web



Related Forum Posts
Re: Enticing Franchises - Top 9 List - All Franchise listed above are in millions of dollars. Do you have the list of Franchise in thousands
Re: Info for would be franchisers... - [quote="Sebastien":1d29sdv1]Like Franchise Times, Franchise Update is a very practical magazine. There is no blah blah, just straight facts that anyone in the franchise community can relate to. I just want to mention that all these magazines are NOT franchisee oriented. I mean these magazines are for franchise professionals. If you're looking to buy a franchise, you won't find much information in there. To answer your question, getting published in Franchise Times was fairly easy. I don't want to brag too much but I think I am known in the franchise industry. I was the marketing guy at Franchise.com for a few years before joining my new company, the World Franchising Network. So people know me and I have a very good relationship with Nancy Weingartner, the Managing Editor at Franchise Times. I was talking with her at the last Franchise Expo South in Miami and she mentioned she'd like me to be profiled. I was like "ok, sure!". I like this franchise executive profile thing in Franchise Times as it is rarely BS. People are usually really natural in there.[/quote:1d29sdv1] Thanks for the follow up Sebastien! And I can't say that I'm surprised that networking with the right people and managing your relationships with them properly are the keys to being published. I guess the old adage holds true of "it's not who you know, but who knows you" that's important.
how much for a franchise fee? - Dear Colleague There is no easy answer to this question. Things to consider: [list=] The sizeof the Franchise Clent base Expected Turnover Intellectual Property costs (recoup) Number of Franchises Number of employees Original Set up costs Franchise admin costs An example: A franchise that I was involved in setting was to a simple "lawn mowing/home repair" franchise. The Franchise included national/local advertising - preparation of client lists - general admin - central accounting etc The Franchise involved 300-500 clients - and an annual turnover of about $300,000 . The annual franchise fee was $30,000. Hope that this gives you some idea Take care Ian[/list]
Re: Franchise Surveys - Another good tool to researching a franchise is to speak with their existing franchisees. This contact information is included in most Franchise Disclosure Documents. In order to get a Franchise Disclosure Document or FDD as it is often referred to, you will have to complete a basic franchise application. The franchisor will then usually provide you with the FDD at that time. Included in that book of information is a list of the existing franchisees, the contract, the investment information etc... This information is required by Federal Law to be disclosed to your prior to making a purchase. So be sure to do your research and start with the Franchise Documents to get the initial information.
Re: Info for would be franchisers... - [quote="Sebastien":2gam0klq][quote="BuzzAroundBooks":2gam0klq]Like Franchise Times, Franchise Update is a very practical magazine. There is no blah blah, just straight facts that anyone in the franchise community can relate to.[/quote:2gam0klq][/quote:2gam0klq] That is really what I look for in any industry publication. We lead busy lives and when people fill their magazines with fluff, not only does it benefit no one, but it makes us truly appreciate those that don't. Thanks!


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