What do you need to sell a franchise? How to franchise your business and sell it

Before packing a franchise, many businessmen have a question - how to sell a franchise? Why will they buy it from me? How does a franchise sale work? Now we will talk about the process of selling a franchise, and I will tell you how to stand out from your competitors and make sure that they buy from you.

In general, the process of selling a franchise is different from selling ordinary goods and services, because when you sell a franchise, you are not just selling - you are looking for partners who will have to work with you for a long period of time. And from the very first contact with a potential partner, you must show that it is you who decides whether a person can buy a franchise or not. This moment is very important, because. a person who wants to open a franchise business is looking for a strong partner who will help him in business. If, during the sale, you cave in to a potential franchisee, then what kind of strength can we talk about?

To make sure that you can easily stand out from your competitors, do a simple test - apply for all your competitors' franchises, and most of them will beg you to buy their franchise. It looks like this “Please, I beg you, buy our profitable business!” Can this be? Is a profitable business going to be sold head-on like that? Well, of course not!

How to show that you are a really strong company and you have a really strong franchise? It is worth doing a selection of franchisees to show that it is you who decides with whom to work and with whom not. How does this happen:

1 - A person applies for your franchise

2 — The manager contacts the lead and after the conversation sends him selling materials: a franchise presentation, a financial model, and, of course, a partner profile. What is a partner profile? This is a kind of indicator of a person's interest. In the questionnaire, you need to make 10-15 questions (experience in business, what investments are on hand, what is most important when choosing a franchise, and more), and send it to the client with the words: “Fill out the questionnaire, and if our manager approves you, we will continue to communicate , will you have time to fill it before the evening?

3 - If a person filled out the questionnaire, then he is really interested in your franchise, and you can work with him, especially since you already know enough information about him that is in the questionnaire. If a person is not ready to devote 5 minutes of his time to filling out a questionnaire, then your franchise is not interesting to him, and there is no point in wasting managers' time to work with him.

4 - 10-12 hours after filling out the questionnaire, you can call the person and say that his profile is approved (if you want to work with such a person). By the way, you should always ask a question in the questionnaire about when a person is ready to start working on your franchise, so you will know whether it is possible to close a lead for sale immediately or not. If a person is not ready to buy now, but he has money (judging by the questionnaire), then you should motivate him by the fact that the franchise is exclusive to each region, and you already have people who want it.

5 - The purpose of this conversation with the client is to book an interview with the manager. If a person is ready for an interview, then this is a very real client, which can be closed by 95%. Before the interview, the manager advises the lead on all issues related to the franchise and sets the date for the interview with the manager. The interview usually takes place over Skype.

6 - At the interview there are: client, manager, leader. During the interview, the manager asks questions to the client, communicates and gets to know him. During the interview, the manager, as it were, is on the side of the client, in which case he can give “friendly advice”.

7 - At the end of the conversation, be sure to say the phrase “Thank you for the interview. Today we have another Skype with a client from your region. After it, we will consult and decide who we want to see as partners. We will call you in 2-3 hours and let you know the decision.”

8 - In 2-3 hours, call the client and say that you have chosen him, and you need to sign the contract.

9 - Sign the contract and get paid for the franchise!)

At the moment, this is the most working scheme for selling franchises. In the following posts, I will tell you about many other secrets and tricks in selling franchises.

Today, thousands of Russian companies are engaged in the sale of franchises. The market is filled with offers to buy business ideas that promise to turn an inexperienced businessman into a successful businessman. Is it possible to stand out against this background? How to sell the franchise of your business at a higher price and create a network that can generate a stable income?

Selling a franchise is not easy. Bright, attractive packaging and a couple of ads on the Web are not enough here. Even if you are the leader in your market segment. A potential buyer is not interested in the right to use your brand. He, in fact, does not care how ingenious the scheme you created is. Future franchisees need a guarantee of return on investment.

More often, people who are ignorant of entrepreneurial activity dream of opening a franchise business. They make up the majority of the target audience. However, newcomers should be more careful. Their fuse can quickly dry up, and they will only blame you for all their failures. But we will talk about the target audience (target audience) further. How does a franchise start?

Define tasks

Business models are created for different purposes, and these goals are achieved by different methods. For one franchisor, brand promotion comes first. For another, profit in the form of a lump-sum contribution and royalties. With the definition of tasks, the development of a franchise begins.

We analyze the activities of competitors

The main thing is to objectively assess the readiness of the enterprise for franchising. If you are the owner of an obscure fast food restaurant, it will be difficult for you to find a buyer. Subway and several other catering giants settled in this niche for a long time. With ambitious plans to promote a furniture store franchise, you will have to work hard in order to "surpass" the ubiquitous IKEA hypermarket. However, everything is possible with a brilliant USP (Unique Selling Proposition).

We determine the target audience

This stage can be compared with laying the foundation of a future building. It's not easy to sell a franchise without understanding the target audience. The main target audience is people without entrepreneurial experience, as a rule, former employees who dream of financial independence. Unless, of course, we are talking about an inexpensive franchise. Experienced entrepreneurs prefer to buy the rights to use the brand of a well-known company, which can be worth several million.

We create a brand book

Selling a franchise is the transfer of intellectual property for a certain fee. Its development includes the creation of an adapted brand book, which contains unambiguous rules for the use of marketing materials.

The manual should be understandable, visual, include comprehensive information about the technical and general characteristics of graphic elements, colors. The brand book provides information about the mission of the company, describes the options for using the logo, and also lists unacceptable methods of using corporate identity elements.

Registering a trademark

Today you decided to create a franchise network. Tomorrow you will develop a trademark, come up with a USP, launch an advertising campaign. Sell your first franchise the day after tomorrow. No, alas, such a scheme is not feasible. Only the registration of a trademark will take about a year.

We form a financial model

A potential franchisee is primarily interested in a business plan, that is, a document that reflects a detailed calculation of costs and projected profits. An important point is the payback period. It is established based on the real experience of the franchisor. The shape and size of the financial model depends on the characteristics and complexity of the business.

We create a package offer

These are materials that are formed on the basis of the target audience. It is necessary to cover the maximum number of segments of potential franchisees, to make the most personalized and profitable offer (offer). A package for a franchisee can be either opening a turnkey business on its own, or providing training materials, training future employees, assistance in selecting premises, etc. Accordingly, the price of the lump-sum contribution will be formed from the completeness of the offer package.

We draw up documents

In our country, there are no specific laws on the creation of a franchise yet. There is a list of requirements, but it is more of a recommendation. It turns out that any unfortunate entrepreneur can call himself a franchisor. Perhaps that is why it is not easy to sell the rights to use famous brands today. There is a lack of confidence in franchises among beginners and experienced entrepreneurs. Nevertheless, there are several tools that can protect cooperation by law, and therefore, inspire the buyer's confidence.

Only an individual entrepreneur or a legal entity can become a franchisor. The same applies to his potential client. In addition to registering a trademark, few documents are needed to sell a franchise. Namely:

Materials for employees.
franchise standards.

The second point implies the mentioned brand book, as well as the requirements that you plan to impose on future partners. This may be a limitation of the franchisor's activities. For example, a ban on the sale of goods or the provision of services outside a certain region. The criteria for choosing a room and other points can also be indicated here.

How to franchise is up to you. With the help of an experienced lawyer, draw up a contract that clearly spells out all the conditions and requirements. Royalties in the form of a fixed amount or a percentage of the franchisee's revenue, the size of the lump-sum fee, the duration of the agreement - all this is determined by you on the basis of your research.

How to create a franchise? The answer to this question is useful to a successful businessman. If the company is just starting to gain momentum, hold off on selling the franchise. Hardly anyone needs a copy of a bad original.

We create a controlling system for approved standards

As a rule, these are mystery shoppers, whose reports can be used to identify weaknesses in the functioning of the business.

We create a marketing kit (advertising)

There are no clear rules for the creation and use of such a marketing tool. But there is no doubt about its effectiveness. The marketing kit includes the history of the company, a list of employees, clients, a list of achievements, a story about participation in forums, exhibitions, conferences, etc. It, like other materials of the franchise package, is compiled on the basis of the target audience.

Creation of a unique selling proposition

And here the definition of the target audience plays a decisive role. Yes, owners of their own businesses are interested in selling a franchise. But there are few of them. Most of the franchisees are entrepreneurs who do not yet have experience. In cooperation with a successful partner, they are attracted by the opportunity to develop in greenhouse conditions. No risks, experiments, mistakes. By the way, this is misleading. There are always risks.

So how do you write a USP? First of all, you need to understand the fears of potential buyers. And they are primarily afraid of unjustified investments. The USP is based on the concept of a franchise. This offer should demonstrate to the buyer all the advantages of your product over the offers of competitors. USP options:

the lump-sum fee is less than that of competitors;
the ability to pay royalties from the third month after the conclusion of the contract;
Comprehensive training for franchisee personnel.

Franchise Advertising

So, the first task is to create a quality product. Not a bright and beautiful brand, but a money making system. The second task is to create the value of the product in the mind of the consumer.

A common mistake franchisors make is the presentation of goods or services at the beginning of negotiations. It is impossible to sell a business to someone who doubts its profitability. This means that in advertising you need to focus on investments and the timing of their return. The buyer is interested in money back guarantees. And only after that - the characteristics of the goods or the quality of the services of the franchisor.

Selling a franchise online

Start promoting a product on the Web by working on the official website. It must be alive, have high attendance. Preferably with reviews from real customers. The future buyer must see: the business is successful, the services you provide bring a good income.

A marketing kit is a tool that has a wide range of applications. It is also appropriate on thematic resources - special sites where a novice franchisor needs to register first. Don't underestimate social media. So, in Vkontakte, Facebook, Instagram, Twitter there are groups dedicated to franchising. Promote your product in thematic communities.

Franchising requires investment. You will have to connect a whole staff of employees: Internet marketers, copywriters, designers. A good sales copy will attract hundreds of start-up entrepreneurs. Bad - will ruin the reputation in the eyes of potential franchisees.

The duration of registration of TK is mentioned above. How to sell a franchise without a trademark? The seller, who has a successful business model and operates under a brand that consumers associate with his activities, is unlimited in the conclusion of the contract.

In this case, the agreement includes a clause on the use of the know-how of the organization and a unique logo. This is an understandable, legal, transparent method of interaction.

How to sell a franchise without opening a single store

In the field of sales there are specialists of a narrow profile. Some masterfully carry out retail operations. Others are wholesale. The third specializes in franchising. The latter are able to develop an interesting idea for the sale of goods without opening a single store.

Professionals in their field manage to build a franchise network according to one of the working models. However, they do not develop their own business, and this fact is sometimes used as a USP. They promise to direct all their efforts to support future partners. It attracts consumers.

Thoughts on how to sell a franchise abroad come to the owners of large companies. Those who managed to promote their brand in the regions of Russia. But there are still few domestic companies operating abroad. At the same time, most of them are limited to the countries of the post-Soviet space.

Study the competitors. This is the only way to convince a potential franchisee of the benefits of your business system. Include consultations, trainings, support in the package sold. Convince a potential buyer that you are providing a proven scheme that will allow him to become financially independent. After all, this is what attracts many in franchising.

Important! With an increase in the number of franchisee partners, the burden on the business will increase. Make sure that your staff allows you to fulfill your obligations with high quality.

The lump-sum contribution depends on the profit that the partner will receive in the future for three to five months. This amount is projected based on your firm's earnings. If the monthly profit is 300 thousand, the franchise must be sold for at least 900 thousand rubles.

When telling a future partner about the prospects, do not exaggerate income, do not keep silent about possible difficulties. Provide only truthful information. Your reputation depends on the success of the franchisee.

What action algorithms will help to find and retain franchisees, as well as to ensure maximum network performance?

Anna Danilova,

CEO, Masterbordyur

You will learn:

How to sell a franchise and develop a franchise network.
How to avoid mistakes when selling a ready-made business.

How to sell a franchise? We were interested in this issue in 2009. Our production technology does not require significant costs, allowing you to create a finished product right on the spot. Moreover, it makes it possible to approach the design of borders and paths in a non-standard way, for example, apply a special pattern or embed backlighting. For the Russian market at the initial stage of our development, this was an innovation.

After analyzing the experience of using the technology in the US and Europe, we came to the conclusion that the demand for our products in the regions should be high. Then it was decided to develop the regions according to the system of organization of the franchise network. For us, this is a winning path of development: controlling a huge number of our own branches is difficult both from an economic and organizational point of view.

In addition, according to our observations, the quality of products and services is noticeably higher when an entrepreneur works for himself and risks personal money and reputation, rather than finances and the name of the head office.

For us, the benefit is that franchisees regularly pay royalties (service fee) and increase brand awareness, thereby increasing demand for products. And we provide consulting support, expand the regional network, improve technologies and transfer this experience to partners.

The number of partners is growing every year. As a rule, we sell no more than two or three franchises per region, the number of franchisees depends on the territory, population density and demand in a particular region. Today, the company's franchisees are represented in 25 regions of Russia and Kazakhstan. Let's look at a step-by-step algorithm for developing a franchise network.

Step 1. Identification of a potential buyer of franchises and a ready-made business

About 70% of our franchisees are new to the business who are interested in technology and want to start working for themselves. A franchise is a business in a "greenhouse", as an experienced franchisor will always help a novice entrepreneur. This is the main lever of influence on the future partner. We give franchisees detailed instructions on how to start a business with estimated costs at each stage, which allows you to bring a new entrepreneur to payback as quickly as possible.

There is also a second category of potential clients, which includes the remaining 30% of our partners. These are entrepreneurs who already have their own business and are ready to develop another direction. They are already familiar with business processes and understand very well the value of the found market niche, as well as the described production technology, business building and support from experienced colleagues. Communication with them is built precisely in these areas.

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Step 2. Promotion and development of the franchise network

As in any business, in order to sell a franchise it is important to use as many promotional tools as possible. There are no random partners and impulsive purchases in the sales of a ready-made business. Therefore, you should always focus on those categories of potential customers who may really be interested in your offer.

If we are talking about the search for already established entrepreneurs in small businesses, then promotion should be carried out precisely in their environment. We find such businessmen at major franchising or construction exhibitions, where you can visually present the product and communicate personally with potential partners.

The booth usually contains a rack with product samples, a curbing machine, a flower bed made using our technology, and videos demonstrate the laying technology itself. If the format of the exhibition allows, we conduct master classes and demonstrate the process of laying the curb. All this allows us to collect many contacts - both potential customers of decorative borders, and potential partners. Communication at such events is the easiest and fastest way to convey the idea of a product and its manufacturing technology to a potential customer and replenish the customer base.

The Internet is an effective promotional tool. About 75% of buyers come to us from the web. To work with experienced businessmen, we place information on major portals for the sale of franchises and ready-made businesses. When working with startups, we use other communication channels - groups in social networks and SMM. This is the best platform for dialogue with young entrepreneurs. Two directions work effectively here. The first is the maintenance of your own groups on the social networks VKontakte, Facebook, Instagram, Google+, YouTube, where news from our website is duplicated, photos, video and audio materials are published. The second direction is the placement of interesting information in the already established groups of young entrepreneurs and landscape designers.

Much attention is paid to SEO-promotion of the site. The website is the face of the company, and its good position in the search engines is the key to success. A special role here is assigned to the uniqueness of the content. Our main goal is to help site visitors quickly find information that is easy and interesting for them to read. The more often this information is updated, the faster search robots index it.

In addition, we place ads with cross-links on major franchise portals: this helps us further develop the franchise network and raises the site in search queries. We choose low- and medium-frequency queries: it is easier to move up in the search results for them; promotion for high-frequency queries does not always bring the expected results. It is very convenient to control the return on advertising through the statistics provided by the LiveInternet and Yandex.Metrica services. They allow you to quickly respond to changes in traffic and check the effectiveness of an online campaign as a whole.

As for planning the advertising budget, it all depends on the effectiveness of the channels used. If you correctly calculate your target audience, correctly distribute the budget, constantly monitor the advertising market and use new tools, you will receive a powerful and stable flow of requests and will be able to quickly sell the franchise.

Development of the agent network: search for agents and partners

Step 3. Create a commercial proposal to sell the franchise

Find out what each category of clients expects from the partnership, what they need, what attracts them to franchising. Most new partners like the system of work itself, when everything has already been invented and it is enough to follow clear instructions to get results. That is why the work of the franchise network should be based on the principles of maximum information openness.

Our company regularly holds open days (discovery days), during which potential franchisees can briefly get acquainted with the technology, equipment and methods of work. After purchasing a franchise, all the issues raised are covered in more detail in the training course. In addition, we organize annual conferences for partners: for two days we share our experience with each other, talk about new technologies, and sum up the work. Be sure to tell about the negative experience in order to prevent the mistakes of the franchisee.

All improvements, new developments and ideas are systematically received by partners in the form of mailing lists and during personal conversations. This is followed by control, assistance in working with customers and other consultations.

Pay special attention to the attractiveness of selling your franchises and ready-made business. Fast payback is always interesting. The average payback period for our franchise, subject to active work in the region, is from three to 18 months. However, this is not the only characteristic that attracts franchisees. Many entrepreneurs are willing to buy a ready-made business with a long payback period if they like it. Franchise can attract the beauty of the product, its novelty or originality.

Step 4. Preparing to sell franchises and a ready-made business

The flow of customers is created, the next step is to turn them into real buyers. At this stage, the key work is carried out by the sales department, whose task is not to miss potential partners. One of our founders developed his own training system for sales managers. The program includes several blocks, such as getting to know the company's product, cold calling techniques, sales in our company, checklists for sales courses and cold calls, and a book of objections.

In addition, sellers themselves should be responsible for the presence of customers, and not rely only on the promotion of the company. Contacts of potential franchisees, regardless of category, can always be found on the Internet. Therefore, in the absence of incoming calls (which is extremely unlikely if you follow all the promotion instructions), sellers must devote part of their working time to finding new customers and communicating with them.

Step 5. How to sell a franchise and keep in touch with a client

An important circumstance in franchise sales is maintaining a connection with a potential client. If someone approached you once, but did not decide to buy a franchise, this does not mean that he will not become your partner. Everything is more difficult in this business than in ordinary sales. You can buy or not buy something just according to your mood, and the decision to start your own business for many is comparable to the decision to get married. Future franchisees need to weigh all the pros and cons, someone needs to consult with relatives, someone needs to analyze the market, study demand.

In our practice, there were two cases when a year and a half passed between the first application and the acquisition of a franchise. And all this time we kept in touch with future partners and provided them with information support.

Step 6. Development of the franchise network: customer support and control

To sell a franchise, it is necessary to conduct pre-sale support for a potential partner. The latter often does not have free funds, and the price of a franchise is very high for him. In such cases, we give advice on the possibilities of lending, obtaining subsidies and grants.

Our company participates in the "Business Start" project of Sberbank of Russia for lending to franchises. By the way, this is another good promotion channel: Sberbank receives many requests for the purchase of a business. This sales tool should be included in the arsenal. However, it must be taken into account that the certification and approval of the sale of franchises and ready-made businesses is not an easy task. The main difficulty lies in the collection of all necessary documents and the lengthy process of approving your project in Sberbank itself. However, participation in the program will once again emphasize the reliability of your franchise model and create a positive image in the eyes of a potential client.

In addition, we regularly develop promotions and special offers, conduct sweepstakes and provide customer service. For new franchisees, there is a Quick Start program: at the initial stage, our consultants optimize the partner's advertising costs, help choose solutions for promoting and launching an advertising campaign. The program includes no less important issues of building an organization: hiring personnel, consulting training in working with customers, obtaining subsidies and benefits. As part of the "Quick Start" we also provide franchisees with the opportunity to create a website. This is a very serious support for inexperienced entrepreneurs who are unfamiliar with web technologies and Internet marketing mechanisms.

In contrast to working with their own networks, the franchise network control system is very simple: it includes the provision of quarterly reports to the franchisee, which indicate the amount of work performed. This data is centrally processed, and based on the analysis, individual support strategies for a particular partner are compiled. Someone needs help with promotion and sales, someone with production and other issues.

The entire range of services listed is included in the licensed part of the contract. Thus, the partner, paying for the license part of the agreement and further royalties, can be sure of our assistance. Of course, all these support measures do not bring direct income to the parent company. However, the commitments we are making are attracting many new partners.

Instagram promotion: how to make it effective

Information about the author and company

Anna Danilova Graduated from the Moscow State Academy of Business Administration in 1998 with a degree in small and medium business management. Since 2009, he has been managing the Masterbordyur company.

"Masterborder" is a franchise group founded in 2008. Implements ready-made manufacturing business packages. The company's franchises are represented in 25 regions of Russia and Kazakhstan. Official site - www.masterbordur.com

Franchising is a great way to expand the sphere of influence of your own business, attract investments and get additional profit. In this regard, many successful entrepreneurs are concerned about the question of how to sell the franchise of their business. The article describes the process of creating and packaging a franchise, as well as the features of advertising and selling franchises via the Internet.

Who can franchise their business

Before you start creating and selling your own franchise, you should familiarize yourself with the features of this business, as well as the existing types and types of franchises. You can find detailed information on all these issues

An organization or an individual registered as an individual entrepreneur can sell a franchise of his business. The type of activity is not limited by law. In Russia, the services and catering sectors are more popular, but no one will forbid putting up for sale a franchise of a manufacturing enterprise or trade organization. Thus, theoretically, absolutely any organization or individual entrepreneur can become a franchise seller.

In practice, things are a little more complicated. The main condition for the expediency of selling franchises is the interest of potential buyers. So, in order for aspiring entrepreneurs to think about acquiring your franchise, the business must fall under the following criteria:

The company has been operating on the market for more than one year and brings a stable profit;
The brand is popular with consumers, known and easily recognizable;
The scheme of work is debugged and tested in practice. It can be described in the form of techniques and step-by-step instructions;
The company has proven suppliers from whom it purchases the necessary equipment, goods and materials;
The work does not require highly qualified personnel. Employees must be trained in a short time;
Business can be easily adapted to different regions of our country;
The size of the initial investment, the payback period and the approximate amount of profit received can be calculated;
The franchisor is ready to provide support and advice to the franchise buyer at the initial stage of organizing a business.

The franchise seller must have a fully legal business. If special permits and licenses are required to carry out activities, they must be obtained by the franchisor.

Why selling franchises is profitable

For the buyer franchise is a great opportunity to start working for yourself with minimal costs under a recognizable brand, using the experience and many years of experience of a well-known company. When it comes to selling franchises, it benefits the business owner because:

The franchisor expands its business, makes the brand more recognizable and improves its reputation;
From each new franchisee, the seller receives a lump-sum fee for the right to work under his trademark;
Every month, a percentage of the profit received by the franchisee is transferred to the franchisor's account.

Thus, the franchise allows the seller to earn additional profit and expand its sphere of influence, without actually making any effort.

How to franchise your business

Before you can franchise your business, you need to register the rights to the brand, logo and trademark. This can be done at the patent office (Rospatent) online or by direct contact. To register a brand, you need to submit an application and pay a state fee, after checking the uniqueness of the logo in a single register. It can take from 4 to 12 months to process the rights, so it is better to take care of this in advance.

If the rights are registered and the company meets the above criteria, the business owner proceeds to create and package a franchise. To do this, you can contact specialized agencies or use the step-by-step instructions below.

Market analysis

Before you create a franchise for your business, you should conduct a market analysis and determine the target audience, that is, those who will be interested in buying a franchise. Knowing which category of people to focus on, you can prepare a proposal taking into account their needs, doubts and financial capabilities.

The study of the target audience is carried out by analyzing competitors, using logical methods, social surveys. The more precisely the needs of buyers are determined, the higher the chance to sell the maximum number of franchises and secure a steady profit in the future.

Contract preparation

A commercial concession agreement is concluded between the buyer and seller of the franchise. It is better to entrust the development of its project to professional lawyers or order it on the Rospatent website. You can, of course, use the contract form downloaded on the Internet, but in this case you need to carefully check all its points. Particular attention should be paid to the following points:

The amount of the lump-sum fee and monthly payments to the franchisor;
Requirements for doing business, compliance with company standards and the ability to introduce innovations and own ideas into the strategy;
Restrictions on location and sales volumes;
The procedure for resolving disputes and the conditions for extending and terminating the contract.

The contract must be adapted to a specific business and include all significant points in order to avoid misunderstandings in the future.

Franchise preparation

Franchise preparation- This is the most responsible and time-consuming stage. Before it starts, you need to conduct a complete analysis of the financial and economic activities of the company, identify its strengths and weaknesses. Direct preparation of the franchise includes:

Registration in the form of instructions of all financial and economic processes of the company, from the purchase of goods and equipment, ending with a collective charter, a customer search scheme and advertising companies.
Drafting a guide to the use of corporate identity of the company.
Development of a system for hiring, training and adaptation of employees.
Formation of a system of training and support for franchisees.
Preparation of accounting documentation and draft business plans.

Ideally, instructions should contain descriptive graphs, diagrams, and tables. It is even better if the material is presented in the form of presentations and videos.

Franchise packaging

Franchise packaging includes the development of a brief concept and a franchise book.

A brief concept is a kind of business presentation. This is what we see when we click on the advertising banner of the company selling the franchise.

This is a commercial offer that fits on 1-2 sheets, which reveals the main features and benefits of the business. Its purpose is to interest a potential buyer, to encourage him to request additional information about the company. The success of sales depends on how well the concept is drawn up by 90%.

If the goal is achieved and the buyer wants to get more in-depth information about the business, a franchise book is sent to him. It is a presentation that answers all possible questions of a potential franchisee.

The purpose of the franchise book is to convince the buyer of the profitability of the business, show its advantages over competitors and dispel possible fears and fears. The franchise book should have an attractive design, be convincing and contain complete and reliable information.

Selling a Franchise

After the franchise is created and packaged, you can proceed to the most important stage - the sale of the franchise. To do this, you need to organize a high-quality advertising campaign and not disappoint the buyer at the stage of the transaction.

Franchise Advertising

Selling a franchise starts with creating your own website. It must be fully adapted for selling a franchise. On the site, a potential buyer can find out all the information he is interested in about the business. The site is the “face of the company”, and therefore it is necessary to carefully consider its design and content.

You can search for partners who are ready to buy a franchise in one of the following ways:

Participation in franchise exhibitions and events dedicated to the development of entrepreneurship. At such meetings, you can present your franchise and communicate directly with potential buyers. The advantage of participating in events of this kind is the opportunity to interact with the maximum target audience. After all, if a person comes to such an exhibition, he is initially interested in buying a franchise;
Advertising in the media and the Internet. This is a rather costly way to attract franchisees, but very effective. Advertising can be placed on social networks in thematic groups and communities, as well as through the Google and Yandex advertising networks through contextual delivery to interested users;

Advertising at points of sale and provision of services. Information that the company is looking for business partners can be placed directly in offices and retail outlets. People who apply to the firm as clients can be visually convinced of the success of the business and want to try themselves as a franchisee.

For a faster sale, it is better to use all possible franchise promotion channels at the same time.

Making a deal

It is very important not to miss a potential partner who is interested in buying a franchise before the deal is finalized. To do this, you need to constantly maintain contact with the buyer, promptly answer all his questions. The franchisee must feel supported by the business owner and be sure that he will not lose it after buying a franchise.

The execution of the transaction can take place remotely, or the parties meet in person to sign the franchise sale and purchase agreement. In the first case, copies of the agreement are signed by the franchisor and the franchisee in turn and sent to each other by mail. The lump-sum fee is transferred to the bank account of the seller, after which the buyer becomes the full owner of the franchise.

It is desirable that the parties meet in person to sign the contract. During the transaction, you can once again discuss key points and eliminate misunderstandings. In addition, personal communication helps to strengthen partnerships.

When franchising your own business, it is important to take into account all the key points and avoid omissions and shortcomings, which can later cost a lot. Most franchisors make the following mistakes:

The lack of a distinctive feature and competent presentation of the advantages of a franchise over other offers on the market. Even if the business is successful and almost 100% likely to bring profit to the partner, no one wants to buy a franchise without a twist.
The size of the lump-sum contribution or royalty is disproportionately high. In pursuit of profit, business owners often inflate the price of a franchise. Buyers, in turn, choose the most advantageous offers for themselves. To avoid such a situation, you need to objectively evaluate your business from the position of a franchisee, think about whether you would buy a franchise for that kind of money.
Calculations and the described indicators do not coincide with reality. If the buyer has doubts about the veracity of the information described in the commercial offer, the franchisor must prove the accuracy of the data with specific examples, conduct a tour of the already operating outlets.
Poor franchise packaging. In order for the buyer to be interested in the commercial offer and to be convinced of the reliability and profitability of the business, it is important to think over not only the content, but also the design of the franchise.
Unregistered logo, brand and trademark. Without registration of rights, the sale of a franchise is impossible.
Poorly drafted franchise sale and purchase agreement. Mistakes in the contract can lead to conflicts, disputes and unpleasant situations. To avoid such a situation, it is better to entrust the drafting of the contract to professionals.
The desire to sell the maximum possible number of franchises at the expense of the quality and reliability of transactions. It is important to remember that the purpose of selling franchises is not only to receive lump-sum contributions, but also to strengthen your reputation and expand your own business. Therefore, you should not sell the franchise to “everyone in a row”. Before selling a franchise, it is worth assessing the seriousness of the intentions and business qualities of the partners.
Lack of desire to help franchisees at the stage of business formation. The responsibilities of the seller include not only the implementation of the franchise, but also support and advice to a budding entrepreneur who has bought a franchise.
Lack of control over the franchisee. Sometimes businessmen who have received a lump-sum fee give the franchisee complete freedom. Such actions can lead to damage to the reputation and adversely affect the business as a whole.
Irrational spending on franchise advertising. If the cost of promoting a franchise exceeds the size of one lump-sum fee, it is urgent to optimize the advertising campaign. Ideally, this is best left to professionals.

To avoid mistakes, you need to approach the matter with all responsibility. Most of the franchises currently on the market are of poor quality and are not able to bring profit to partners. Creating a truly high-quality product is a job that requires an investment of time, effort and money.

I will not dissemble - franchising is another way to make money for those who already have an existing and successful business. Franchising in this case is an additional source of income. However, this source of income requires additional investment. The point here is not so much in creating a franchise package and, as it is now fashionable to say, in “packaging” a business into a franchise, but in creating a separate sales and support department franchise partners.

Naturally, when launching a franchise business, the owner himself is often both the sales department and the support department rolled into one. However, as the network grows, a large number of existing and potential partners appear, it is necessary to systematize and delegate work. You will not be able to let the development of the franchise network go by itself - you will either have problems attracting partners, or difficulties will arise in further relationships. Until litigation. But future franchisors, as a rule, do not think about these difficulties ... for the time being.

As a rule, the start of franchise sales starts easily - the first franchisees come by themselves, especially if the business is new, offers a unique product or service, or has a well-known name and brand. However, the rapid interest and active growth is gradually decreasing - this is inevitable. This means that sales and growth rates begin to fall.

Usually, at this point, most franchise owners begin to actively search for channels to promote franchises. And of course, the first thing they turn to specialized Internet resources, accumulating a potential audience of possible franchisees.

However, even the placement of information about the franchise and the announcement of a turnkey business in franchise catalogs does not guarantee stable demand. Listing the franchise in the catalog is only the first step, but it is far from the only one. In order for such platforms to be effective, and requests to turn into discoveries, it is necessary to choose multifunctional and technically and professionally advanced aggregators and services that can facilitate the work of the franchise sales department, and sometimes even optimize it.

BIBOSS follows the path of optimizing and automating the process of selling franchises.

We can say that BIBOSS to some extent even replaces the sales department or at least helps to reduce the budget for its maintenance, allowing you to keep only professionals who do work that cannot be automated. For example, only a professional franchise manager can negotiate on the merits, determine whether a potential franchise buyer will be a successful and reliable franchise partner in the future.

At the same time, the franchise seller needs not only to bring the client to the conclusion of the transaction - the signing of the contract, but also to determine whether it is worth bringing each individual potential franchisee to this stage. The conclusion of the deal - the signing of the contract - is only the successful completion of the first stage. Then the most interesting begins ... However, today we are not talking about this, so let's get back to sales, or rather, to the processes that precede them.

It will not be about the stage of negotiations with potential franchisees, and not even about the methods of processing incoming applications. We will talk about those processes that occur BEFORE the receipt of an application for the purchase of a franchise. Moreover, if you think that the work of the franchise sales department begins precisely from the moment an application is received, you are deeply mistaken.

You can easily set up your sales team in such a way that it will only process those applications that will lead to discoveries, without wasting time on empty conversations and negotiations with leads who are not interested in your offer.

It is on the system of collecting hot applications, applications-openings that BIBOSS has been working for over 10 years.

What is the BIBOSS system based on?

Before talking about a system that allows you to optimize the process of selling a franchise, I propose to understand what kind of people decide to buy a franchise, and how they approach the choice of a particular franchise.

Working with "beginners": pros, cons, methods

As a rule, novice entrepreneurs who do not have significant experience in running a business (in the worst case, have no experience at all, either in business or in life) are interested in franchises. This shortcoming is filled with a great desire to work for yourself and the dream of starting your own business. Burning eyes and enthusiasm- traits characteristic of potential franchisees, which, nevertheless, must be feared.

Enthusiasm is, of course, a laudable and necessary thing, but it tends to end and dry up at the most inopportune moment - when problems, difficulties, disagreements or discontent arise. Therefore, the franchise sales department faces an almost fantastic task - to determine during negotiations whether the potential partner has enough enthusiasm to survive all the difficulties and possible problems when starting a franchise business.

The lack of experience will affect in the future, after the conclusion of the transaction - "newbies" in business will attack the personal manager with questions that a more experienced entrepreneur would consider stupid. Nevertheless, when buying a franchise, aspiring entrepreneurs count on comprehensive assistance and advice on any issues here and now.

In addition, start-up entrepreneurs are in limbo- they do not know what business to open, and therefore they are studying completely different offers from different business areas. Today they are sure that the franchise of kindergartens is the key to success, tomorrow - that opening a clothing store under a well-known brand is their chance to become an independent businessman, etc.

In order to attract this category of potential partners - first of all, you need to convince them of the prospects of the business that you offer them, and then describe in detail in what areas you can provide them with competent support and advice.

People are lazy by nature, which means that the more help you provide, especially free (included in the cost of the franchise), the more willing the potential franchisee will be to become your partner. However, you should not go too far with promises and free consultations and materials - business is business, and a relaxed entrepreneur who was given a business on a blue border, most likely, will not be able to hold out in the market and work autonomously and independently. Therefore, when placing a franchise in catalogs, the description should indicate what your partner has to do directly, put forward requirements or outline the terms of reference.

We influence visuals, audials and... digitals

It is better to see once than hear a hundred times - this is what most of the inhabitants of this country are guided by. Even if you list your franchise in all sorts of directories and profile sites, if you do not provide a description with photographs, people will not believe you.

Photos are a kind of evidence of the existence of you, your company, your business and everything that you write and talk about.

The same goes for video. In this case, you will already be able to influence the audience, convincing them of the profitability and success of the enterprise - buying a franchise.

Photos, presentations and videos seemingly additional and unimportant details that have nothing to do with business as such. However, they still give their effect. Firstly, the very fact that the company holds a special photo shoot and allocates a budget for shooting a video about its franchise non-verbally, on a subconscious level, inspires trust and respect for the company itself, which naturally translates into a franchise offer.

Secondly, both photos and videos attract attention and are remembered. And even if the person who viewed your photos, presentation or video did not decide to buy a franchise for one reason or another, it is quite possible that visual images will pop up in memory at the right time - when talking with acquaintances or friends. So information about you and your franchise is distributed free of charge.

However, any entrepreneur, starting or acting, is to some extent digital, because the purpose of business is to make a profit. It is impossible to make a profit without a slender and clear financial model. Business is a strict sequence of actions that leads to profit. However, in order to put this sequence into operation, financial injections are needed.

The question of finance it is also necessary to clarify immediately, without hiding or withholding from a potential partner, the required amount of investments, the amount of the lump-sum fee and royalties, as well as notify about all kinds of mandatory and additional payments. Thus, you can immediately weed out entrepreneurs who do not have the necessary amount of free cash and do not waste time on empty negotiations with rogues.

The more transparent the financial model of the franchise looks like, the more trust you will inspire in a potential partner. Yes, by submitting a complete and comprehensive business plan for starting your franchise business, you may encounter competitors who take advantage of your business plan and open their business without your help, on their own. However, then the question arises not about the effectiveness of placing a business plan in free access, but about as a franchise. If an entrepreneur can easily and easily open a business on his own and sees no reason to buy a franchise, most likely the point is not that you have opened the data of your business, but that there are no visible benefits in cooperation with you. And if a potential partner does not see the benefits, then you didn’t talk about them or didn’t do it well enough.

Check for lice

However, do not think that only the outer shell (description, photographs, and even a business plan) will help you get potential partners in the competition with other franchises.

Both experienced entrepreneurs and more advanced “newbies” are interested in franchises, who approach choosing a franchise and starting a business with caution, analyzing and comparing. The main thing for this category of potential customers is to prove their reliability. And since a large, if not the main, part of the negotiations takes place remotely - by phone, to do this in terms of empty words is not the best tactic. Another thing is if your reliability is confirmed by authoritative sources, for example, either specialized or reviews of existing franchisees.

A weighty argument in favor of "believe" for doubters will be the company's transparent policy. If you are not afraid to disclose information about your franchise, participate in ratings and projects aimed at disclosing public information about franchises, disclose the contacts of existing franchisees...

Only when you provide complete and comprehensive information about your franchise in one place, you will be able to receive applications from people who are not only aware, but also serious about buying a franchise, who no longer need to explain and prove anything, who have independently weighed all the pros and cons, studied the inside and out of the financial model ... and now they just want to sign an agreement and open a business for your franchise. The only thing left for franchise managers to do is

do not miss the hot client and bring him to the conclusion of the transaction.

A similar franchise sales system has been developed and implemented at BIBOSS. We have already verified its effectiveness.

You can test the effectiveness and make sure of the effectiveness of BIBOSS by leaving a franchise application, or further increase the sales team and spend your time and money collecting applications on your own, cold and ineffective calls and empty negotiations, instead of working on developing your business. ..