As a franchise consultant, a question I commonly hear is “What steps should you take when you franchise your business?”
Often, new Franchisors become so focused on the details of their franchise programs, they forget to look at “the big picture”. One of the most important issues when you franchise your business is how to market your franchise program and sell franchises. To answer this question, you must first identify your target franchisees.
Granted, the requirements of the business you are franchising will, to a large extent, help shape your target franchisee profile. However, to succeed when you franchise your business, you must focus on the characteristics common to the people:
(a) most likely to be attracted to and
(b) most able to effectively operate one your franchise locations.
Perhaps the most compelling reason to carefully consider who are going to be your most likely prospective franchisees is simple: if you know who you want to reach, as you franchise your business, you can fine-tune your program to be more attractive to them.
For example, if your franchise is intended to be a part-time business providing supplemental household income, it could be a competitive advantage to build some time flexibility for busy franchisees with families into your program when you franchise your business.
Example two: If your franchise requires the owner/operator to be physically fit, such as a workout center, structure your program to provide opportunities for the franchisee to exercise while on the job.
Another reason considering your target franchisee’s wants and needs is so important when you franchise your business: few emerging Franchisors have unlimited marketing budgets.
In order to most effectively spend your marketing dollars and time, you must know who you are trying to attract. Once you know your likely prospects, you can then decide how to reach them most efficiently when you franchise your business.
Who are your most probable franchisees?
As you franchise your business, some or all of these questions may apply:
- When you franchise your business, will your franchisee need specific skills, education, experience, background or license/certification to operate the business (for example, be able to obtain a liquor license?)
- What income can a franchisee reasonably expect to make?
- Is your target franchisee likely to be satisfied with the anticipated income?
- When you franchise your business, do you want single unit owner/operators, investor franchisees or multi-unit owners?
- What kind of experience is needed to successfully operate a location of your franchise? How much?
- What initial investment will be needed to open a franchise location when you franchise your business?
- Does your franchise program offer emotional or other intangible benefits (working with pets or children, providing a community service )?
- How does your franchise program compare to other direct competitors, especially well-established competitors?
- When you franchise your business, what attributes will your franchisees need?
- What attributes do you want to avoid in your prospective franchisees?
- What type of person do you think will be most interested in your franchise offering?
Thinking About Franchising?
NFA Franchise Consultants have the experience to help businesses franchise. Just watch and listen to some of our client case studies and video testimonials. We can HELP YOU and it doesn’t cost anything to call and talk to us!
So, if you are still asking the “should I franchise my business” question over and over with no clear direction, give us a call at (706) 356-5637, or contact us through our online form. We look forward to helping you take your business to the next level and beyond.