In our last article, we addressed how important planning is to your franchise sales program. If you want to succeed in franchise sales, you must establish your franchise sales goals and then develop a strategy to reach those franchise sales objectives.

Proper planning will allow you to track the results of your franchise sales strategy. This tracking will enable you to recognize areas of least and greatest success in your franchise sales program.

After developing your franchise sales strategy, determining your franchise sales objectives and planning how to achieve your targets, you must decide who will be responsible for your franchise sales program.

For most any franchise sales program, there are three alternatives:

  • One or more members of the franchise management team
  • An inside franchise sales person
  • A franchise broker or other outside sales representative

Franchise Sales Program Benefits

There are positives and negatives of each approach. The least expensive option is using members of the franchise management team to sell the franchise at the outset. This option will be successful only if the owners of the franchise company have the time, the willingness and the ability to sell the franchise.

Using the owners of the company as the initial franchise sales people has several benefits, notably:

  • The new franchise company will not have to pay a sales person’s commission, allowing it to keep more of the funds generated from initial franchise fees.
  • A new franchise company does not have a track record, so to a large extent, new franchisees are investing in the franchisor’s management team. These owners/managers may be the best people to convince the prospective franchisees.
  • As mentioned previously, the first few franchisees have a tremendous impact on the overall success of the franchise program. By performing the franchise sales function, the owners can spend sufficient time with a prospect to decide if this is the right person to entrust with their future success.

There may be circumstances when it would be best to utilize either an inside or outside sales representative to implement the franchise sales program. One example of such circumstances are if the franchisor’s owners/managers do not have the time, personality or interest to sell the franchise.

More on franchise sales next time…

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