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Franchise Sales Mastery: Executive Summary
How is a Selection Process different than a Sales Process?
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Selection Process |
Sales Process |
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Franchisor selects only those candidates who both match the franchisors’ profile of successful franchisees and whose objectives can be met with a high degree of probability using the franchisors’ business model. |
Franchisor sells franchises to all candidates who demonstrate a willingness and ability to purchase one. |
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Franchisor focuses on whether or not candidates are a match. |
Franchisor focuses on whether or not the candidates will buy. |
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Franchisor focuses on recruiting quality franchisees. |
Franchisor focuses on recruiting a quantity of franchisees. |
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Franchisor seeks to eliminate potential failures by denying marginal candidates a franchise. |
Franchisor seeks to maximize growth by accepting marginal candidates. |
It is our experience that if a franchisor focuses on the quality of the franchisees in the short run, the franchisor will create a quantity of quality franchisees in the long run. Quality generates quantity.
Guiding Principles for Franchisee Selection
The Franchise Performance Group believes that an integrity based selection process leads to success and growth. Further we believe that to reap the greatest rewards, the following guiding principles need to be applied to the selection process.
1. Be dedicated to helping franchise candidates to determine whether or not their personal objectives can be met using the franchisor’s business format. If the franchisor representative knows that the candidates’ objectives cannot be met with a high degree of probability, the franchisor representative should communicate this information to those candidates.
2. Have a clear franchisee profile of the individual traits, background, and capital that are necessary to produce success within their business model.
3. Evaluate candidates to determine whether or not they match the profile of a successful franchisee. Candidates who do not match the franchisor’s profile should not be awarded a franchise.
4. Create a candidate-friendly process. Franchisor representatives should act as facilitators throughout the investigation process. Franchisor representatives should discard high pressure sales techniques that offer no value to the candidates or the investigation process.
5. Understand the goals of the candidate. Franchisor representatives should understand the goals and the measurable objectives that the candidates are trying to achieve. They should assist the candidate by either providing, or helping them to acquire the information that they need to accurately evaluate their business format in the light of the candidate’s objectives and goals.
6. Focus on results. The franchisor should meet its growth objectives by recruiting only the franchisees that match the franchisor’s profile of a successful franchisee and have a high probability of achieving what they seek.
7. Follow a process that works. Franchisor representatives should be trained on how to follow a proven step-by-step candidate-friendly process to maximize results.
What results should I expect?
Over time and with practice, franchisors who follow the Franchise Sales Mastery Process should achieve the following benchmarks:
- 10-20% of all inquiries fill out and submit the franchisor’s qualification forms.
- 10-20% of all franchise applicants make a “yes” decision and join the franchise.
- Franchise candidates finish their investigation process and execute their franchise agreement in 10 weeks or less.
In other words, 2% or more of all the franchisor’s leads make a “Yes” decision and execute franchise agreements in 12 weeks or less.
If you are currently hitting these benchmarks, you are doing great! Don’t change a thing!
If you are not hitting these results, something is not working and you have lost opportunity.
For More Information
Joe Mathews
Franchise Performance Group
860-567-3099
joe@franchiseperformancegroup.com
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