An article about how large chains sell franchises. We study the experience of large chains and use the described methods in selling our franchises.
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The easiest way to evaluate the success of a franchise network is to count the number of open operating points of this network. Obviously, a successful, efficient business model attracts a lot of attention from the entrepreneurial community. Thus, the number of open points becomes one of the main indicators of the success of the network. Consequently, how the sales of this franchise are organized will be key in the development of the entire network.

In this article I will tell you several basic ways to sell a franchise. I am practically familiar with each method and have seen it work in practice. Therefore, for each method I will give explanations and recommendations for implementation.

So let's look at our seven ways to sell a franchise.

Method No. 1: The founder sells the franchise
I am convinced that a franchise without the support of its founder is doomed to failure. In our country, people do not trust the reputation of a company or corporation as much as they trust a person. If there is trust in the entrepreneur who is the face of the network, then the franchise sells well. The franchise founder must be the mastermind, strategist, and, if you like, the conscience of the entire network. The chain's frontman is the guarantor of what the franchise program promises in its communications and in its statements.

How to implement this method in practice.

First of all, the founder must be visible and talk about his franchise. Pay attention to what public actions the presidents and leaders of other large associations perform: live broadcasts, visits to branches, official addresses, comments on past events, plans for the future, instructions from the management staff on necessary actions. The founder of your franchise should have his own set of public and private actions that he applies in a given situation.

With this method of selling a franchise, the franchisee first becomes a subscriber of the franchise founder, and only then a partner of this network. And the main motive for joining is trust in the founder.

As an alternative, you can consider hiring a recognizable media personality as an ambassador for your franchise to increase the level of trust in your franchise program right from the start.

Method No. 2: The brand sells the franchise
There is a very common fear among franchisors: "What if after buying a franchise they learn everything and just change the sign and continue working without us?". This is a very serious risk for franchises that do not have a strong brand at their core.

The very presence of a quality mark from the franchise brand attracts consumers and gives an advantage in the competitive struggle. Who needs burgers that are exactly the same as McDonald's, but not McDonald's. Consumers want to get an original product under a strong, familiar brand.

You should practically develop the strength of your brand. You should increase brand trust and convey the benefits and mission to the audience of your brand's consumers. If the brand becomes popular with consumers, applications for buying a franchise will flow into your mailboxes by themselves.

With this sales method, the franchisee first becomes a fan of the brand and then a buyer of your franchise.
Method No. 3: The product sells the franchise
You simply cannot sell your franchise if you are selling the same product as everyone else. Otherwise, the whole point of a franchise is lost.

Your product must have advantages over competitors and must be significantly different from analogues. Even if you have a coffee shop, your coffee is different in some way, your roasting is special for some reason, your staff makes coffee in a special way, otherwise there is no point in buying your franchise.

It is important to combine in the concept of the product everything that accompanies consumption: service, interior, packaging, pricing and, of course, the quality of the product itself that you produce: burger, pizza, dance lessons or beautiful nails.

It is quite difficult to separate the product and the brand in our story. But if we take Burger King as an example, then the product will be their fire-roasted meat and the ability to add habanero peppers, and the brand will be the rebellious rock-and-roll spirit inherent in Burger King establishments.

I am convinced that an entrepreneur will never become a franchise partner if they do not like the product that the business produces.

In this case, the franchisee first becomes a consumer of the product, and then a buyer of your franchise.
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Method No. 4: The franchise is sold by the consumer
One of my favorite cases is the Black Star Burger franchise. When this franchise was launched, the queue to the establishments could be measured in tens, and sometimes hundreds of meters. What could be better confirmation of the sustainability of the business model?!

If a potential franchisee sees that the demand for the product and the brand is high, then the sales of the franchise are also growing rapidly.

An entrepreneur buys a franchise when they are confident in the sustainability of the business model. What proof of business success can be more convincing than the huge interest and demand from consumers.

If you have managed to build a business that is loved by consumers, you can not worry about the success of franchise sales.
Method No. 5: The franchise is sold by an advertising company
A well-tuned advertising campaign for your franchise will significantly help in franchise sales. The franchise must constantly find new sales channels and work on the efficiency of these channels:

  • Contextual advertising

  • Targeted advertising

  • Media advertising

  • Event and exhibition participation

The effectiveness of each channel is measured by the number of leads generated from potential franchise buyers. The entrepreneur sees the advertising material, leaves their contact information, and requests more detailed information about your franchise with their application. This application is then processed by the franchising team.

All of the listed advertising channels can significantly contribute to the sales of your franchise, but it is obvious that any advertising campaign will fail if the product is "empty." Advertising is a convenient way to buy your franchise, but only those who are motivated to buy your franchise will be able to take this path.

This is the only one of the listed methods that cannot work alone, it only strengthens the others.

Method No. 6: The franchise is sold by a network
As one of my clients in a franchise project said, "The best advertising for a franchise is new openings." It's hard to argue with this statement. If you see that a network is growing very quickly, more and more new locations are appearing, you really want to join this network and buy a franchise for yourself, before the best locations are taken.

You should show the rapid growth of your network and widely cover the openings in your social networks and other information platforms.

This method works if your network is able to open one location every 1-2 months or even more often.

With this sales method, the franchisee feels like a big story is unfolding around them, but it is passing them by. This is one of the most unpleasant feelings for an entrepreneur. And to become a part of a rapidly growing network, they buy a franchise.

Method No. 7: The team sells the franchise
It is obvious that a large number of new openings will not happen by themselves, someone must drive them, someone must guarantee and ensure this steady growth in the number of locations in the network. This guarantor is your franchising team.

The franchising team must promptly process incoming applications from potential franchisees, schedule meetings and negotiate with franchise buyers. The number of franchises sold and the number of outlets opened directly depends on the actions of the team.

I am sure that by the time you have finished reading this article, it will be obvious to you that it would be good to have all 7 franchise sales methods in your arsenal. That's what I'm hinting at. Even during the process of packaging the franchise, all the listed mechanisms should be configured so that franchise sales take off right from the start.

Naturally, some of the methods will be more effective, some less effective, but a set of the listed tools will be able to boost your franchise sales and expand your network presence to the federal or even global level.