Step 1: Franchise Outreach/Lead Generation
Franchise lead generation and marketing will fill your franchise sales funnel and be the first interaction with a potential franchise buyer. Potential lead portals for franchise lead generation:
Organic leads can be generated through franchise referral programs, Franchise SEO, Franchise Public Relations and other mediums.
Franchise Tradeshows can be an effective way to generate leads and meet potential franchise candidates in addition to other marketing channels.
Step 2: Franchise Contact and First Presentation
Franchise leads should be greeted with an automated response promoting the model, the franchise value proposition and the overall concept so they are enticed to have additional discussions with the franchise team. Franchise sales calls should be made within 60 minutes of the lead being submitted for best results. We typically recommend that a text message should be sent as well. We then have additional introduction emails which should be crafted to your brand and franchise model, but ask key questions:
· Why are you interested in the franchise?
· What Time Frame would you like to open the Franchise?
· Qualify the Franchise Candidate.
· Present the next step in the sales process.
Step 3: Franchise Presentation Call
During this call, you should explain the sales process and the defined steps in the process before they would execute a franchise agreement.
1. Introduction and explain the team behind the franchise.
2. Define the process and qualifications needed to be awarded a franchise.
3. Ask the buyer to speak openly with you and share their story.
4. What is the timeframe for this decision?
5. Confirm that the franchise process is clear and understood.
Step 4: Franchise Buyer Approval / Disclosure
Once the candidate has submitted their completed Franchise Request For Consideration form, it is reviewed and approval is granted to move forward in the process. We review with candidate what to expect upon receiving the Franchise Disclosure Document. We recommend sending a hard copy of the FDD sent via FedEx and electronically via DocuSign. We then like to schedule a call to review the FDD with the candidate and go through the document in detail. Following the candidate being disclosed, validation and communication with existing franchisees is encouraged and recommended.
Disclosure: Current registered FDD document is sent to candidate. Unaudited financial statements must be current within 90 days. In registration states, the revised agreement must be renewed with every registration state every year. The following are registration states: CA, FL, HI, IL, IN, MD, MI, MN, NY, ND, OR, RI, SD, TX, VI, WA, WI. (https://www.fmsfranchise.com/blog/franchise-state-registrations/)
Step 5: Franchise Discovery Day
Once a candidate has been disclosed and had the opportunity to thoroughly review the Franchise Disclosure Document, an invitation to attend a Discovery Day is extended. The Discovery Day is the ultimate franchise sales opportunity, it is where you show off the business, let them see the business in action and get to know everyone involved in the business model. If the discussions take you there, you can ask for the close at the Discovery Day.
Step 6: Follow up for the Close
Constant follow up is given throughout the entire process, the closing process is no different. Following Discovery Day, most often the candidate has additional questions regarding the information they were provided during their visit. The final commitment to move forward and become a franchisee is requested and confirmed.
Step 7: Award Franchise
Now that the decision has been made to become a franchisee, Franchise Agreements and all supporting documents are signed, notarized and submitted to the corporate office along with payment of the initial franchise fee. Training is scheduled and the countdown to Grand Opening begins for the approved franchisee.
For more information on How to Franchise Your Business, contact us: https://www.fmsfranchise.com/about-franchising/contact/
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.