January 17th 2008 01:29 am
Selling the Franchise
Let us say at the outset that hard-sell tactics have no place in franchise sales. Although the times when franchising was a sellers’ market appear to have gone for good and the temptation “to grab what you can get” must be great, especially if the prospect is able to come up with the required investment, this course of action could spell disaster for the network.
Using the formal franchisee profile as a reference throughout, each prospect should be carefully guided along the decision-making process. Should it emerge at any point that the prospect lacks essential qualifications of whatever kind, negotiations should be terminated.
In an unguarded moment, many franchisors have admitted, rather wistfully, that initially they tended to make the mistake to accept all-comers, primarily on the basis of their ability to support the required investment, but have lived to regret it. Given the intricacy of the franchise relationship, it can take five to ten years to flush out franchisees that turn out to be a liability to the network.
The important thing to remember is that a franchisor’s profits, if they are to be sustainable, will not be derived from franchise sales but from ongoing management services fee payments. New franchisees are apt to require a lot of handholding early on, resulting in losses for the franchisor. It makes scant sense, therefore, to accept franchisees into the network who lack the potential to be groomed into the kind of operators you need to grow your network and generate satisfactory returns for the franchise operation.
Possibly related posts: (automatically generated)
Selling the Franchise
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- Some Franchise Terminology
- Business format franchise
- Is a franchise the optimal solution? From the prospective franchisor's viewpoint
- Modern-day Franchising Part 2
- Investing in a franchise: Take it slow
- The franchise agreement
- Open-ended franchise agreement
- The parties to the franchise agreement
- Preparations for franchising
4 Comments »
Franchisees Opportunity Link Below on 23 Jul 2008 at 12:21 pm #
Details of how many properties they have sold are also provided, including location, house details, and asking and final prices. … Franchisees Opportunity Link Below
Sales Process on 23 Jul 2008 at 12:46 pm #
GM sold 296, 300 cars and trucks in January; car sales were up 15 percent while truck sales were flat from last year. … Sales Process
Legal Advice on 06 Oct 2008 at 8:38 pm #
Besides getting names and phone numbers, you should ask them what kind of legal problems they were having; were they satisfied with the services they received, did the lawyer do what he or she promised Did the lawyer return phone calls Was the fee reasonable… … Legal Advice
Franchise Owners on 09 Oct 2008 at 12:37 am #
If you would like to about Batteries Plus franchise opportunities, you’ ve come to the right place. … Franchise Owners