Tweet

Franchise Sales Success Improves by Using a Franchise Proposal

Written by: Paul Roesch

Article Overview: Franchise prospects don’t buy a franchise they buy the benefits of the franchise. The key questions all franchise prospects want answers to are “Who you are, what you do, what makes you different and why consumers do business with you.” A well-crafted franchise sales proposal will clearly articulate these answers.

Franchise Sales Success Improves by Using a Franchise Proposal

The economy has many issues and it is going to be challenging for quite some time. Every asset is being re-evaluated, every investment weighed. Included in this investment evaluation are franchise and license business models.

This is a buyer’s market and there are many competing opportunities for qualified prospects. Time is of the essence with buyers.

So to be successful at franchise sales will require a precise marketing message articulated extremely well the franchise’s benefits to the prospective franchisee.

Fact one: Prospects don’t buy a franchise they buy the benefits of the franchise: So what does this mean?

It means it’s time to re-evaluate who you are, what you do and why should someone invest in your franchise system. This means performing a SWOT analysis to assess the concept’s strengths, weaknesses, opportunities, threats as well as performing a similar drill to competing concepts within the same space.

For example: What Does the Public See and Say When They Hear Your Name?

What does the Public see and say when they hear THEIR name?

What is the franchise’s reputation? And how do you determine or affirm your firm’s reputation? Ask your customers. Formally survey your customers (sellers and buyers). Ask your suppliers. Ask your franchisees.

Realistically…What Does Your COMPETITION See?

Prepare a proposal that caters to Investors goals. Work backwards from the goals by matching your opportunity to the goals.

Most franchise advertising and marketing is the same, out-dated and blah—“we have a support system, an operations department, marketing, technology” glossy pictures absent substance. But what really makes you unique, what gives your franchisees the edge.

Use a Proposal. It will force the management team to look inwardly at the model, to be accountable and put their best step forward.

Remember that the key questions all prospects want answers to. “Who you are, what you do, what makes you different and why consumers do business with you.”

Copyright© 2009 Paul M. Roesch

Related Articles
  Franchising with all its Success
  About 60% of all franchise opportunities have less than 50 units.
  Why Use a Franchise Consultant?
  Did you know: NIIT Franchise was present in Malaysia in 1997?
  Franchise Agreement: Terms on a Franchise Resale

Article Tags: consumers, franchise sales, proposal, prospects, sales success



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!


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

The OLD Way of Advertising, May Not be so OLD

Stay Employed In A Down Economy

How Promotional Caps became a Fashion Trend

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.