How to start selling franchises. How to open a franchise of your business and sell it. Search and evaluation of buyers for the franchise
If an entrepreneur has developed his business from scratch and received a workable, highly profitable product as a result, sooner or later he will be visited by thoughts of developing a brand as a franchise.
Franchising today is developing at a rapid pace; more and more business projects from the regions are conquering the country, developing as a franchise. But you need to sell your business franchise correctly; in this article we will figure out how to avoid mistakes.
In conditions of macroeconomic instability, businessmen are finding more and more advantages in franchising. Let's talk about what benefits await the brand owner after selling the franchise:
- Increasing your brand awareness, entrepreneurial status and revenue of each enterprise by expanding your network.
- Payment of a lump-sum fee for joining the network by each new partner.
- Regular royalty payments for the right to use your brand.
Where to begin
If an entrepreneur has already fine-tuned his business processes to perfection, has established work with partners and suppliers, knows where to buy quality equipment, how to behave with a client and all the intricacies of his business, you can start selling a franchise.
Registration trademark.
Securing the terms of cooperation.
You need to think about the conditions under which you are willing to offer the use of your brand, as well as the quality. Also, many franchisor entrepreneurs collect funds from franchisees for advertising.
Formation of a thoughtful and competent commercial proposal for partners.
IN commercial offer There should be as much information as possible about your company; the potential franchisee must understand what he will pay for. Develop beautiful ones, show them financial results- this will only increase your status in the eyes of potential partners.
Develop guidelines for using corporate identity.
A guideline is a document that contains rules for using brand elements on various media.
Develop a manual for company management.
is a document that contains the company's concept and brand attributes.
Find good contractors and make a quality website.
This will increase your status, and later you can use one site, creating your own subdomains for each franchisee.
I won’t lie - franchising is another way to make money for those who already have an existing one successful business. Franchising in this case is an additional source of income. However, this source of income requires additional investments. The point here is not so much in creating a franchise package and, as it is now fashionable to say, in “packaging” the business into a franchise, but in creating a separate sales department and support department franchisee partners.
Naturally, when launching a franchise area, the owner himself is often both the sales department and the support department rolled into one. However, as the network grows and a large number of current and potential partners appear, it is necessary to systematize and delegate the work. Letting the development of a franchise network take its course will not work - you will either have problems attracting partners, or difficulties will arise in further relationships. Up to and including litigation. But future franchisors, as a rule, do not think about these difficulties... for the time being.
As a rule, the start of franchise sales starts easily - the first franchisees come on their own, especially if the business is new, offers a unique product or service, or has a well-known name and brand. However, vigorous interest and active growth are gradually declining - this is inevitable. This means sales and growth rates begin to fall.
This is usually when most franchise owners start active search franchise promotion channels. And naturally, the first thing they do is contact specialized Internet resources, accumulating a potential audience of possible franchisees.
However, even posting information about the franchise and advertisements for a ready-made turnkey business in franchise catalogs does not guarantee stable demand. Placing a franchise in the catalog is only the first step, but far from the only one. For such platforms to be effective and applications to turn into discoveries, it is necessary to choose multifunctional and technically and professionally advanced aggregators and services that can facilitate the work of the franchise sales department, and sometimes even optimize it.
BIBOSS follows the path of optimizing and automating the process of selling franchises.
We can say that BIBOSS is, to some extent, even replaces sales department or at least helps to reduce the budget for its maintenance, allowing you to employ only professionals who perform work that cannot be automated. For example, to negotiate on the merits and determine whether a potential franchise buyer will be a successful and reliable franchisee partner in the future can only professional manager by franchising.
At the same time, the franchise seller needs not only to bring the client to the conclusion of the transaction - the signing of the contract, but also to determine whether each individual potential franchisee is worth leading to this stage. Concluding a deal - signing an agreement - is only the successful completion of the first stage. Then the fun begins... However, today we are not talking about this, so let’s return to sales, or rather to the processes that precede them.
We will not talk about the stage of negotiations with potential franchisees, and not even about methods for processing incoming applications. We will talk about the processes that occur BEFORE receiving an application to purchase a franchise. Moreover, if you think that the work of the franchise sales department begins from the moment an application is received, you are deeply mistaken.
You can easily set up your sales team in such a way that it will process only those requests that will lead to openings, without wasting time on empty conversations and negotiations with leads who are not interested in your offer.
It is through the system of collecting hot applications and discovery applications that BIBOSS has been working for 10 years.
What is the BIBOSS system based on?
Before talking about a system that allows you to optimize the process of selling a franchise, I propose to understand what kind of people decide to buy a franchise and how they approach the choice of a particular franchise.
Working with “newbies”: pros, cons, methods
As a rule, novice entrepreneurs who do not have significant experience in running a business are interested in franchises (in the worst case, they have no experience at all, either in business or in life). This deficiency is compensated by a great desire to work for oneself and the dream of opening one’s own business. Sparkling eyes and enthusiasm- characteristics characteristic of potential franchisees, which, nevertheless, need to be wary of.
Enthusiasm is, of course, a laudable and necessary thing, but it tends to end and dry up at the most inopportune moment - when problems, difficulties, disagreements or dissatisfaction arise. Therefore, the franchise sales department faces an almost fantastic task - to determine during negotiations whether a potential partner has enough enthusiasm to survive all the difficulties and possible problems when starting a franchise business.
The lack of experience will have an impact in the future, after the deal is concluded - “newbies” in business will attack the personal manager with questions that a more experienced entrepreneur would consider stupid. And yet, when buying a franchise, aspiring entrepreneurs count on comprehensive assistance and advice on any issues here and now.
In addition, budding entrepreneurs are in limbo- they don’t know what business to open, and therefore they study completely different offers from different areas of business. Today they are sure that a kindergarten franchise is the key to success, tomorrow - that opening a clothing store under a well-known brand is their chance to become an independent businessman, etc.
In order to attract this category of potential partners, first of all you need to convince them of the prospects of the business that you are offering them, and then describe in detail in what issues you can provide them with competent support and advice.
People are lazy by nature, which means the more help you provide, especially free assistance (included in the cost of the franchise), the more willing a potential franchisee will be to become your partner. However, you shouldn’t go too far with promises and free consultations and materials - business is business, and a relaxed entrepreneur who was given a business on a silver lining, most likely, will not be able to hold out in the market and work autonomously and independently. Therefore, when placing a franchise in catalogs, the description should indicate what your partner will have to do directly, put forward requirements or outline the scope of responsibilities.
We influence visual, auditory and... digital children
It is better to see once than to hear a hundred times - this is what guides most of the inhabitants of this country. Even if you place your franchise in all sorts of catalogs and specialized sites, if you don’t provide a description with photographs, people won’t believe you.
Photographs are a kind of proof of the existence of you, your company, your business and everything that you write and talk about.
The same goes for video. In this case, you will already be able to influence the audience, convincing them of the profitability and success of the enterprise - buying a franchise.
Photos, presentations and videos, seemingly additional and unimportant details that have nothing to do with the business as such. However, they nevertheless have their effect. Firstly, the very fact that the company conducts a special photo shoot and allocates a budget to shoot a video about its franchise non-verbally, at the subconscious level, inspires trust and respect for the company itself, which naturally transfers to the franchise offer.
Secondly, both photographs and videos attract attention and are remembered. And even if the person who viewed your photos, presentation or video did not decide to buy a franchise for one reason or another, then it is quite possible that visual images will come to mind at the right moment - when talking with acquaintances or friends. This way, information about you and your franchise is distributed completely free of charge.
However, any entrepreneur, starting or existing, is to some extent a digital entrepreneur, because the goal of business is to make a profit. It is impossible to make a profit without a harmonious and clear financial model. Business is a strict sequence of actions that leads to profit. However, to put this sequence into operation, financial investments are needed.
Question with finances It should also be clarified immediately, without hiding or concealing from a potential partner, the required amount of investment, the size of the lump-sum contribution and royalties, as well as notify about all kinds of mandatory and additional payments. This way, you can immediately weed out entrepreneurs who do not have the required amount of available resources. Money and don’t waste time on empty negotiations with rogues.
The more transparent it will look financial model franchise, the more trust you will inspire in a potential partner. Yes, by providing a complete and comprehensive business plan for opening a business under your franchise, you may encounter competitors who took advantage of your business plan and opened their own business without your help, on their own. However, then the question arises not about the effectiveness of making a business plan available for free access, but about as a franchise. If an entrepreneur can easily and simply open a business on his own and sees no reason to buy a franchise, most likely the matter is not that you have opened the details of your business, but that there are no visible benefits in cooperation with you. And if a potential partner doesn’t see the benefits, it means you didn’t talk about them or didn’t do it well enough.
Checking for lice
However, you should not think that with just the outer shell (description, photographs and even a business plan) you can get potential partners in competition with other franchises.
Both experienced entrepreneurs and more advanced “newbies” who approach choosing a franchise and starting a business with caution, analyzing and comparing, are interested in franchises. The main thing for this category of potential clients is to prove their reliability. And since most, if not the main, part of the negotiations takes place remotely - over the phone, doing this using only empty words is not the best tactic. It’s another matter if your reliability is confirmed by authoritative sources, for example, either specialized ones or reviews of existing franchisees.
A compelling argument in favor of “believing” for doubters will be the company’s transparent policy. If you are not afraid to disclose information about your franchise, participate in ratings and projects aimed at disclosing public information about franchises, disclose the contacts of existing franchisees...
Only when you provide complete and comprehensive information about your franchise in one place will you be able to receive applications from people who are not only knowledgeable, but also serious about buying a franchise, who no longer need to explain or prove anything, who have weighed themselves all the pros and cons, they have studied the financial model inside and out... and now they just want to sign an agreement and open a business under your franchise. The only thing left for franchise managers to do is
Don’t miss out on a hot client and bring him to the conclusion of the deal.
A similar franchise sales system has been developed and implemented at BIBOSS. We have already been convinced of its effectiveness.
You can check the effectiveness and make sure of the effectiveness of BIBOSS by submitting an application for franchise placement, or continue to increase your sales department and spend your time and money on independently collecting applications, cold and ineffective calls and empty negotiations, instead of working on developing your business. ..
A franchise gives the buyer the right to use business mechanisms, trademarks, software, partnerships. The seller of the franchise is called the franchisor, the buyer is called the franchisee. When concluding a franchise agreement, the buyer pays a one-time payment - a lump sum fee. Every month he pays the seller a percentage of the profit - royalties.
Advantages of franchising
Selling a franchise allows the franchisor to make a profit and expand the business with minimal financial and material investments. The buyer plays the role of a motivated manager, seeking to grow the business and maximize profits. He is interested in providing quality services no less than the seller.
Advantages of franchising:
The franchisee and franchisor enter into an agreement under which the buyer pays royalties and a lump sum fee, and the seller transfers exclusive rights to use the brand
Selling a franchise is beneficial for entrepreneurs who have formed a working business model and are ready to replicate it. At the same time, the product or service must be in demand, and the company itself must operate successfully in the market. A franchise should become a full-fledged business for your partners. Important factor- the opportunity to train franchisees in business management mechanisms in a short period of time (up to 4 months).
Preparation for sale
Before selling a franchise, prepare a partnership package, draw up Required documents and instructions for doing business in the regions. Assess the potential of your business and make a list of requirements for the buyer. Develop standards and guidelines.
Preliminary business assessment
Make a decision about creating a franchise based on analytics of your own business. Assess the factors that determine the success of an enterprise:
If your company meets all the criteria, start preparing a franchise proposal.
Conduct research on market leaders who may compete with you. Get a complete picture of the industry and find own advantages. U successful entrepreneurs, working in your field, you can learn from experience and work mechanisms.
You can evaluate the strengths and weaknesses of each competitor using the criteria from the table
Plan financial turnover taking into account costs and probable income, profitability and payback period of the business. Draw a franchise model and identify areas where things could go wrong and result in costs. Assess whether you can pull the company out of the crisis in the event of losses.
The main thing for the franchisor is to create structures for consulting support and quality control of partners’ work, and come up with life support mechanisms for the system. If you sell products, think about supply and warehousing, and if you sell services, think about how you purchase equipment. Prepare enough resources so that you don’t go under with your first sales.
Having received satisfactory results from the research, begin preparing a franchise proposal.
Preparing proposals for buyers
The attractiveness of the franchise for many is due to the presence of a strong brand and thoughtful style. These factors compensate for the slow payback or serious initial investment. Young entrepreneurs are ready to invest money in original ideas, decorated with taste.
When making a proposal for a franchise, draw up documents in accordance with the company's corporate identity - such a package looks more attractive than a folder with black and white printouts
Package the franchise beautifully, complete the paperwork and prepare a presentation for a potential buyer. Information that must be included in the proposal structure:
Make the presentation so as not to overload the buyer with unnecessary facts, but at the same time he does not have any additional questions for the company’s managers.
Legal side of the issue
Before registering a franchise offer, register your logo, corporate identity, company name and trademark with Rospatent. Registration documents can be submitted online.
Go to the Rosreestr website and check the uniqueness of the company name and logo. Please note that the catalog does not have classification by category or automatic search. You will have to view the pages manually. To avoid doing this yourself, contact the registration company intellectual property and order a paid check. As a result, you will be given a document confirming the uniqueness of the brand name.
To register with Rospatent you will need the following documents:
When submitting an application, you will be given priority over companies that apply for name registration later. If registrars encounter two identical names, your application, submitted earlier than your competitor, will be approved, and his will be rejected.
The registration period for a company name and trademark is 4–12 months. During this time, Rospatent employees conduct checks for uniqueness and copyright.
When registered, a trademark is assigned a unique number, and the name of the company that has the right to use it is written in the certificate.
Without registering a trademark, it is impossible to sell a franchise. A commercial concession agreement concluded upon the sale of a franchise provides for the transfer to the buyer of a number of exclusive rights, including the use of a registered trademark - as stated in Article No. 1027 of the Civil Code of the Russian Federation. The only exception is when the company is in the process of registering a trademark. In this case, you can conclude a license agreement, and upon completion of registration, convert it into a franchising agreement.
The commercial concession agreement must include clauses defining:
According to the standard agreement, the franchisor must provide consulting support to the franchise buyer, issue teaching materials to start work and conduct training. You can include in the document additional clauses on the purchase of equipment and raw materials, on the resale of franchises and others. Think through the terms in such a way that the franchisee does not have the desire to terminate the agreement.
The rights that the franchise buyer receives from the moment the contract is concluded, according to the law:
In addition to the franchising agreement, you can enter into a commission agreement, a licensing agreement, an equipment rental agreement and other agreements with the franchisee that govern your relationship.
Development of guidelines and standards for franchising
The document, second in importance after the commercial concession agreement, is step-by-step instruction on business management. When writing instructions, describe in detail:
Describe in detail the services provided by the franchisee:
In the manual, describe in detail the company’s operating scheme and the benefits for franchisees
After selling one or two franchises, you can adjust the points in the guide in accordance with the experience gained.
Promoting your product
Answer the question why a franchisee should choose your product. Find unique advantages sentences and focus on them. Disseminate information about selling your business on online resources:
Create a landing page on the Internet - briefly describe the advantages of the franchise, provide the amount of investment and possible income, add customer reviews. Accompany the data with graphical information. At the end, add a feedback form and contact information. Leave a link to the page wherever you place an advertisement for the sale of a franchise. If you doubt your own skills, contact advertising agency- professionals will make a colorful presentation and help promote the product.
Use offline promotion channels:
Seminar for aspiring entrepreneurs - the best place for offline advertising of a franchise
Conduct your own presentations at the enterprise and record videos about the company's work to show how attractive and profitable your business is. Rework the proposal for each region, focusing on local specifics. Be prepared to support the future franchisee and guide him in making a purchasing decision. Develop a system of discounts and promotions for beginning entrepreneurs.
Search and evaluation of buyers for the franchise
Screen candidates before selling a franchise. Conduct interviews to ensure that these people will contribute to the brand, and not the other way around. Preliminarily draw up a portrait of the ideal franchisee. Write down the qualities that he should have, and during negotiations, mark the points that satisfy you.
Franchising today is one of the most common and accessible forms of business development. Having launched one brand, in enough time short time the owner has the opportunity to expand it and distribute it throughout the country, using franchising as a way to transfer rights to the brand. But how to sell a franchise? How to make it in demand among budding entrepreneurs? After all, why do this?
Benefit
Cooperation in this form is beneficial to both brand owners and franchisees who purchase rights. The former receive, firstly, a lump sum payment (a one-time payment that is made to buyers to “enter” the franchise). Secondly, the owner receives regular monthly payments from the buyer, which can be presented either as a certain (fixed in advance) amount or as a percentage of the franchisee’s income. Thirdly, through a franchise, the business owner gets the opportunity to expand his brand and distribute it. Initially there may be additional outlets in your city, and in the future - ready business countrywide. And in general, the popularity and prevalence of a franchise makes it possible to increase sales for a business, attracting new customers and increasing profits. Therefore, the growing popularity of a particular brand is a benefit for both business owners and buyers of rights to it. What does it mean to sell a franchise? This is to give other businessmen the opportunity to start their own business using the business model you have established. Of course, not without reward for you.
Where to begin?
Suppose you are the owner of a grocery store that is quite successful under a certain brand. You soon realized that the business model you had established was quite successful, and therefore decided to develop this direction, attracting partners. You have chosen a franchise as a form of cooperation. Where do you need to start selling your brand? Roughly speaking, the question arises: “How to sell a franchise?” We will answer it in this article.
First of all, think through all the details of how you will cooperate with your customers (franchisees) and under what conditions. Determine how attractive your business may seem to them; Find out how much you can charge partners for working under your logo in a way that gives them the opportunity to earn money too. Decide on the terms of cooperation. To do this, we recommend that you familiarize yourself with how other sellers organize a franchise: read contracts, look through brand books, instructions, etc. All this will give you some idea of how business processes work in this area and where you should go to offer your services on the market.
Promote a franchise
Once you have a ready-made concept in your hands, you can think about how to sell the franchise. In general, this procedure is similar to the processes that arise when promoting any product on the market. In particular, first you need to promote your brand, then present it profitably, and then make a sale.
With promotion everything is simple. Referring to our example: if your store has been in business for many years and still generates high enough profits, it will best advertising your brand. As you understand, the main indicator of the quality of a franchise is its profitability.
You can submit your concept of transferring rights to use the brand by creating a public offer to everyone, which consists of creating your own store under your brand. You can attract people by describing all the benefits of your brand, as well as advertising it in terms of profitability and recognition in the eyes of customers. Plus, you need to take care of distributing your offer: for example, submit an advertisement for the sale of rights to work under the TM on specialized sites that have franchise catalogs. At the same time, you will need to describe how your store is beneficial, which means the franchise buyer’s store will be profitable, and also describe the terms of cooperation (lump sum, royalty amount, requirements for the buyer and the total approximate amount of investment to start the business).
Franchisee support
You not only need to know how to sell a franchise, you need to think about one more important point - helping the franchisee. The fact is that your success also depends on whether things work out for your buyer or not. If the enterprise is successful, your partner will take care of expanding the business, and the royalty amounts will increase. At the same time, there will be others who want to start their own business. You will also have new ways to sell franchises.
In order for your buyer to succeed, you need to provide him with support. It consists of both developing instructions and pointing out errors. Figure out what you will advise the buyer, preferably before selling the franchise.
Further development
Finally, take care of the further promotion of your brand. Place more advertisements on the Internet, start an advertising campaign. Come up with some special “trick” of your brand! In general, if you are looking for how to sell a business franchise, use your own creativity - and the solution will come!
Thousands of people are selling franchises today Russian companies. The market is filled with offers to buy business ideas that promise to turn an inexperienced businessman into a successful businessman. Is it possible to stand out against this background? How to sell the franchise of your business at a higher price and create a network that can generate stable income?
Selling a franchise is not that easy. Bright, attractive packaging and a couple of ads on the Internet are not enough here. Even if you are a leader in your market segment. A potential buyer is not interested in the right to use your brand itself. In fact, he doesn’t care how brilliant the scheme you created is. Future franchisees need guarantees of return on investment.
More often than not, people who are ignorant of the entrepreneurial activity. They make up the majority target audience. However, you should be more careful with beginners. Their passion can quickly dry up, and they will blame only you for all their failures. But we will talk about the target audience (target audience) further. Where does franchise development begin?
Defining tasks
Business models are created for different purposes, and these goals are achieved various methods. For one franchisor, brand promotion comes first. For another - making a profit in the form of a lump sum and royalties. Franchise development begins with defining objectives.
We analyze the activities of competitors
The main thing is to objectively assess the enterprise’s readiness for franchising. If you are the owner of a little-known fast food restaurant, you will have a hard time finding a buyer. Subway and several other food service giants have settled in this niche for a long time. If you have ambitious plans to promote a furniture store franchise, you will have to work hard to “outdo” the ubiquitous IKEA hypermarket. However, everything is possible if you have an ingenious USP (Unique Selling Proposition).
Determining the target audience
This stage can be compared to laying the foundation of a future building. It's not easy to sell a franchise without understanding the target audience. The main target audience is people without entrepreneurial experience, as a rule, former employees who dream of financial independence. If, of course, we are talking about inexpensive franchise. Experienced entrepreneurs prefer to buy rights to use a brand famous company, the cost of which can be several million.
We create a brand book
Selling a franchise is the transfer of intellectual property for a certain fee. Its development includes the creation of an adapted brand book, which contains clear rules for the use of marketing materials.
The manual must be clear, visual, and include comprehensive information about technical and general characteristics graphic elements, colors. The brand book provides information about the company’s mission, describes options for using the logo, and also lists unacceptable methods of using corporate identity elements.
Registering a trademark
Today you are planning to create franchise network. Tomorrow you will develop a trademark, come up with a USP, launch advertising campaign. The day after tomorrow you will sell your first franchise. No, unfortunately, such a scheme is not feasible. It will take about a year to register a trademark alone.
Forming a financial model
A potential franchisee is primarily interested in a business plan, that is, a document that reflects a detailed calculation of costs and projected profits. An important point is the payback period. It is established based on the actual experience of the franchisor. The shape and size of the financial model depends on the characteristics and complexity of the business.
We create a package offer
These are materials that are formed based on the target audience. It is necessary to cover the maximum number of segments of potential franchisees and make the most personalized and profitable offer. The package for franchisees can range from opening a turnkey business on their own to providing training materials, training future employees, assistance in selecting premises, etc. Accordingly, the price of the lump sum contribution will be determined based on the completeness of the offer package.
We prepare documents
In our country there are no specific laws on creating a franchise yet. There is a list of requirements, but it is rather advisory in nature. It turns out that any would-be entrepreneur can call himself a franchisor. Perhaps that's why we should sell the rights to use famous brands Today is not easy. There is a growing distrust of franchises among beginning and experienced entrepreneurs. Still, there are several tools that can protect cooperation legally, and therefore inspire buyer confidence.
To become a franchisor can only individual entrepreneur or entity. The same goes for him potential client. Apart from registering a trademark, you will need few documents to sell a franchise. Namely:
- Materials for employees.
- Franchise standards.
The second point implies the mentioned brand book, as well as the requirements that you plan to impose on future partners. This may be a limitation on the franchisor's activities. For example, a ban on the sale of goods or provision of services outside a certain region. The criteria for choosing a room and other points may also be indicated here.
You decide how to register a franchise individually. With the help of an experienced lawyer, draw up an agreement that clearly states all the conditions and requirements. Royalty in the form of a fixed amount or a percentage of the franchisee's revenue, the size of the lump-sum payment, the duration of the agreement - you determine all this based on the research conducted.
How to create a franchise? The answer to this question is useful for a successful businessman. If the company is just starting to gain momentum, hold off on selling the franchise. It’s unlikely that anyone needs a copy of a bad original.
We create a control system for approved standards
As a rule, these are secret shoppers, customers of whose reports can identify weaknesses in the functioning of the business.
We create a marketing kit (advertising)
There are no clear rules for creating and using such a marketing tool. But there is no doubt about its effectiveness. The marketing kit includes the history of the company, a list of employees, clients, a list of achievements, a story about participation in forums, exhibitions, conferences, etc. It, like other materials of the franchise package, is compiled on the basis of the target audience.
Creating a unique selling proposition
And here the definition of the target audience plays a decisive role. Yes, owners of their own businesses are interested in selling a franchise. But there are few of them. Most franchisees are entrepreneurs with no experience yet. In cooperation with a successful partner, they are attracted by the opportunity to develop in greenhouse conditions. No risks, experiments, mistakes. By the way, this is a misconception. There are always risks.
So, how to create a USP? First of all, you need to understand the fears of potential buyers. And they are afraid, first of all, of unjustified investments. The USP is built on the franchise concept. This offer should demonstrate to the buyer all the advantages of your product over competitors' offers. USP options:
- the lump sum fee is lower than that of competitors;
- the ability to pay royalties from the third month after the conclusion of the contract;
- comprehensive training of franchisee personnel.
Franchise advertising
So, the first task is to create a quality product. Not a bright and beautiful brand, but a system for making money. The second task is to create the value of the product in the consumer’s head.
A common mistake franchisors make: presenting goods or services at the beginning of negotiations. It is impossible to sell a business to someone who doubts its profitability. This means that advertising needs to focus on investments and the timing of their return. The buyer is interested in guarantees of return of the invested money. And only after that – the characteristics of the goods or the quality of the franchisor’s services.
Selling a franchise online
Start promoting your product on the Internet by working on the official website. It must be alive and have high attendance. Preferably with reviews real clients. The future buyer must see: the business is successful, the services you provide bring good income.
A marketing kit is a tool that has a wide range of applications. It is also appropriate on thematic resources - special sites where a novice franchisor needs to register first. Don't underestimate and social media. So, on Vkontakte, Facebook, Instagram, Twitter there are groups dedicated to franchising. Promote your product in thematic communities.
Promoting a franchise requires investment. You will have to involve a whole staff of employees: Internet marketers, copywriters, designers. A good advertising text will attract hundreds of aspiring entrepreneurs. A bad one will ruin your reputation in the eyes of potential franchisees.
The duration of registration of technical specifications is mentioned above. How to sell a franchise without a trademark? A seller who has a successful business model and operates under a brand that consumers associate with its activities is unlimited in concluding a contract.
In this case, the agreement includes a clause on the use of the organization’s know-how and unique logo. This is an understandable, legal, transparent method of interaction.
How to sell a franchise without opening a single store
In the field of sales, there are specialists of a narrow profile. Some master retail operations. Others are wholesale. The third specializes in franchising. The latter are capable of developing interesting idea for the sale of goods without opening a single store.
Professionals in their field manage to build a franchise network according to one of the working models. However, they do not develop own business, and this fact is sometimes used as a USP. They promise to devote all their efforts to supporting future partners. This attracts consumers.
Thoughts about how to sell a franchise abroad come to owners large companies. Those who managed to promote their brand in the regions of Russia. But there are still few domestic companies operating abroad. However, most of them are limited to the countries of the post-Soviet space.
Research your competitors. This is the only way to convince a potential franchisee of the benefits of your business system. Include consultations, trainings, and support in the package you sell. Convince the potential buyer that you provide a proven scheme that will allow him to gain financial independence. After all, this is what attracts many people to franchising.
Important! As the number of franchisee partners increases, the workload on the business will increase. Make sure that your staff allows you to fulfill your obligations efficiently.
The lump-sum contribution depends on the profit that the partner will subsequently receive for three to five months. This amount is projected based on your firm's revenue. If the monthly profit is 300 thousand, the franchise must be sold for at least 900 thousand.
When telling your future partner about the prospects, do not exaggerate your income or remain silent about possible difficulties. Provide only truthful information. Your reputation depends on the success of the franchisee.