In all likelihood, the franchise sales and marketing process is unlike any you have ever been a part of – unless, of course, you have marketed and sold franchises before. Consider your starting point in the process. You are often going to start the sales process by asking your prospective franchisees to:
- Quit their jobs
- Give up their benefits
- Give up their security
- Trust you to help them invest their life’s savings
- Make a lifetime commitment to a business in which they may not have experience, and
- Oh, by the way, you cannot tell them how much money they will earn.
But the good news is, it is a process. And like any sales process, if you follow the right steps and your business model is strong, you will get predictable results. If, of course, you do things right…
Add to this complexity the knowledge that the franchise sales process is legally regulated at both the state and federal level. Violations of franchise sales laws can result in:
- Significant fines at both the state and federal level
- Contract rescission
- Financial restitution of all monies paid by your franchisees
- Potentially being banned from selling franchises
- Private rights of action (litigation) under various state franchise laws
- And in some states, violation of franchise laws is a Class 4 Felony
While the laws regulating franchise sales and sales compliance are not particularly onerous or difficult to follow, you need to be sure you and your sales team are properly educated and are able to document your compliance.
That is where the iFranchise Group comes in.
Our sales training is provided to one franchise company at a time – not a in a mixed class environment – so you can gain the benefit of role playing with real time questions about you and your competitors. And it is provided by people who have sold literally hundreds of franchises.
Our sales training is real world and practical. It is taught by sales professionals who have sold franchises and is kept current by the ongoing direct involvement in the sales processes of our affiliate, Franchise Dynamics. Consider the following:
- Many of our consultants at the iFranchise Group have sold franchises – either internally for a franchisor or in a brokerage capacity.
- Consultants at the iFranchise Group have, during their careers, sold over 2,000 franchises in total.
- The iFranchise Group’s franchise sales outsourcing affiliate (Franchise Dynamics) keeps us current on best practices in franchise sales every day.
- Franchise Dynamics sold 504 franchises in 2011 and is on pace to sell over 700 in 2012.
- The sales professionals at Franchise Dynamics have sold over 7,000 franchises during the course of their combined careers in franchising
When you consider that for a typical start-up franchisor looking to sell 12 franchises in their first year, an increase of just 0.5% in their close rate will, over the course of a year, create three incremental franchise sales, $75,000 – $120,000 in incremental franchise fees, and millions of dollars in lifetime royalties, the importance of optimizing your sales efforts becomes readily apparent.
To learn more about how we can help you to optimize your franchise sales, contact one of our consultants at no cost or obligation at 708-957-2300 or email@example.com. Or, if you would like a free copy of our 90-minute seminar on How to Franchise Your Business, which deals in some depth with the issues involved in franchise sales, click here. And if you would like to request a copy of our free webinar, “How Many Franchises Can I Sell?”, click here.