Franchisors Should be Careful When "Selling" a Franchise
by Ed Teixeira
Franchisors should avoid the aggressive “selling” of a franchise; they should
direct their efforts into providing prospective franchisees the information
needed to make an educated and well informed decision. Learn why this is
important. When a person looks to invest in a franchise opportunity they obviously seek
to “buy” a franchise. However, it doesn’t necessarily follow that those
representing the franchisor should be “selling” the franchise. Although this may
seem confusing, let me explain some of the reasons why.
The Person Representing the Franchisor Should Act as a Consultant
- An aggressive franchise
sales approach can lead to unqualified people purchasing a franchise. By
unqualified I don’t refer to just financial or business qualifications but
rather people unqualified to operate a particular franchise.
- Franchising is the
beginning of a relationship. An individual that invests in a franchise does so
with a look to the future.
- One of the most effective
ways to qualify a franchise candidate is to carefully guide them to their
decision by providing them valid information and clearly stating answers to
their questions.
- Use a franchisee profile
and stick to it. If the candidate does not have the attributes contained in the
profile they should not be granted a franchise.
The Person Investing in the Franchise must be as Objective as Possible
- Be disciplined in
maintaining your objectivity regarding a franchise. I advise candidates to be
cautiously enthusiastic.
- Follow a set process when
you consider a franchise. You can find a number of articles on our website. Also
you can visit the FTC site.
- Always remember that the
majority of franchises depend upon adding franchisees for growth. This can place
added pressure on those who sell franchises to make a sale.
- Have advisors with the
business experience and qualifications who can provide you credible advice.
- Gather as much information
and feedback as possible from current and former franchisees.
- Focus on the quality of the
investment you are about to make.
Franchisors need to focus on making sure that prospective franchisees are
properly guided toward making a decision based upon the long term interests of
both the franchisor and franchisee. A strong sales approach by franchisor
representatives may achieve short term results but can mean problems down the
road.
Franchise candidates must avoid being “sold” but rather concentrate on the
quality of the franchise investment.
© 2010 FranchiseKnowHow, LLC
Ed Teixeira is the President of FranchiseKnowHow, LLC.
He can be reached at
franchiseknowhow@gmail.com
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