Perhaps the most common question we are asked by new and emerging franchise companies is “how do I sell my franchise?”
Consultants, lawyers and others offer all kinds of advice and counsel on this most important question, some of which is either ill-advised or based on self-interest. Sound and responsible recommendations on this vital subject can only be provided after the program for franchise development is well underway – not before it starts.
Historically, franchise sales efforts were almost always performed on an in-house basis, where a franchisor hired a franchise sales/development person to be responsible for this effort. They generated their own leads, performed all the functions involved in the sale of a franchise and directly approved all qualified candidates for their franchise. Over time, however, much has changed as it relates to selling franchises. The growth of the internet, reliance on websites and the emergence of various forms of franchise sales brokers have dramatically changed the franchise sales landscape with some positive outcomes and many negatives and abuses.
What a new and start up franchise company must first understand is that neither they, nor any qualified and responsible consultant or advisor, can provide the right answer and advice until the franchise development process has started and there is a clear understanding of the franchisor’s objectives, their resources, their unit operating and financial history, their personnel, their growth potential, the competition and many other key factors. In selling franchises, one size does not fit all. We can speak with considerable authority and experience that an emerging franchisor must first go through this process to make the right decision – a decision that may likely determine the success or failure of the company.
You cannot accurately determine at the outset whether you should use one of the many franchise lead generating companies that are available or one of the many franchise brokers that exist or whether you should commit to have a franchise consulting firm sell your franchises for a fee or commission. And you cannot at the outset determine whether you should bring this all important function in-house.
It is essential and very sound advice that you not make this decision and not allow an advisor to influence you until the first phases of your franchise program have been developed and you have a sound basis for making this important decision. There cannot be any self-interest on the part of the person or entity providing you with advice on this subject.
Our expert consultants are here to answer your questions on this topic, please contact us.