Franchise Your Business: Selling Franchises to The Right People
In order to franchise your business successfully, it takes the appropriate systems, marketing tools, training systems and scalability.....but most importantly it takes a great screening process. I once heard a great saying about franchising, the three most important elements in franchise sales are Selection....Selection and Selection.
It sounds corny, but it couldn't be more on point when franchising a business. Particularly when a new franchise is taken to market and the first franchise partners are recruited, selection is extremely important. I have seen it many times before, where a new franchisor is excited to put "Pins in the Map" and takes the first checks that walk in the door.
It's easier to talk about it than actually practice the restraint in becoming a new franchisor! Someone calls interested in opening a new location of your franchise and they have a $35,000 check in their hand. This is how someone "slips through the cracks" as the wrong kind of franchisee. This is how it starts, then you have a franchisee who isn't following your system, is "polluting the well" with other franchisees and is causing more heartache for you than it's worth in managing the debacle you've created.
So when you make the decision to franchise your business, what character traits and elements can you look for in new franchise partners that will limit the mistakes?
1. Look for candidates that you can work with. Great talent, drive to succeed and lots of money don't necessarily mean that you can work with a potential franchisee. Make sure that personalities and values match up in order to find good partners.
2. Don't cut corners. Good franchise buyers take time to find and even more time to fully train and support. Don't let your buyers short cut the training or skip steps in your process, this is a sure way to land people who won't value your system or worse yet, your advice.
3. Find the glass is half full partners. Optimism is a funny thing....you either have it or you don't, if you are fighting up-river all the time with your first franchise partners, it's going to be a long ride to get to that point where your franchise system hits critical mass and is able to grow consistently.
4. Look for singers. You want people early on in your franchise system that are willing and able to talk with new buyers about their business, experience and hopefully YOU in a positive way, your first franchisees will be your most important testimonials.
5. Don't sell to under-capitalized buyers. It's a slippery slope....and it gets worse after you've sold it to someone who just doesn't have the capital to launch your franchise. They will do it on the cheap every step of the way to keep the franchise moving forward....and when you do it on the cheap, well....you get cheap results.