If you’re looking for ways to sell more franchises faster, you may turn to the internet. We’ve already discussed how it’s an excellent resource for business owners and franchise companies. Online, you can find brokers that will help you sell franchise locations and as a new franchisor, you might find this to be a relief.
However, be aware that there are many franchise brokers who will not take on clients who lack a certain number of already established locations. Brokers may not be willing to take the risk on a new business and you may have to do longer searches in order to find a team that is willing to take on your franchise.
You may also find a broker who handles newer franchise companies, however, they may already be representing far too many franchises to keep up with and they can’t take you on or give you the attention that you want in order to build your franchise quickly and efficiently with high-quality candidates.
In order to make selling your franchise easier whether working with brokers or not, franchise industry experts encourage pulling together a proven model that works and is easy to duplicate. You will have an easier time talking with franchise brokers, and franchise candidates, and building your franchise companies as a whole.
Finances should be in order before you begin the sale in your franchise companies. You should have a competent management team in place at all of your company-owned locations. The last thing you want during startup is to have huge problems popping up in your current locations that you must leave your developing locations in order to attend to.
Problems in your established locations don’t do much to help the confidence of your new franchisees or your franchise sales team either.
Franchisors should know what they want to price units at and the exact cost to quote franchisees with when it comes to startup costs. This means investigating property costs in the market area that you plan to build, whether it’s in the same town, the one next over, or another state.
You will want to go through the cost of a startup for yourself and what money you actually make from opening a franchise versus what you pay from the franchise fees for marketing, grand opening, and getting that franchise up on its feet. Consider if you will be paying for leads, commercials, and any other way you plan to bring attention to your franchise companies opening in the area.
If you do plan to work with a broker, you will have to remember that most do charge a fee. Depending on the individual company, the fee may be taken out of the amount the franchisees give you when they buy a franchise or they may take money upfront for their efforts. It’s up to you as the owner of franchise companies to do background research on the brokers and find out what would work best for your company operations.
FMS is a team of expert franchise consulting professionals based in Canada that provides solutions for franchise development, franchise consultation, and expansion of businesses globally.