Franchise today is one of the most common and affordable forms of business development. By launching one brand, in a fairly short time, the owner has the opportunity to expand and distribute it throughout the country, using a franchise as a way of transferring rights to the brand. But how to sell a franchise? How to make it in demand among aspiring entrepreneurs? After all, why do this?
Benefit
Cooperation in this form is beneficial for both brand owners and franchisees - buyers of rights. First get, first, lump sum (a one-time payment that is made to customers to “enter” the franchise ”). Secondly, the owner receives regular monthly payments from the buyer, which can be presented both in the form of a certain (fixed in advance) amount and percent of the franchisee's income. Thirdly, due to the franchise, the business owner gets the opportunity to expand his brand, distribute it. At first, these can be additional retail outlets in your city, and in the future, a ready-made business throughout the country. And in general, the popularity and prevalence of the franchise makes it possible to raise sales for the business, attracting new customers and increasing profits. Therefore, the growing popularity of a brand is a benefit for both business owners and buyers of rights to it. What does it mean to sell a franchise? This will enable other businessmen to start their own business according to the business model you have debugged. Of course, not without reward for you.
Where to begin?
Suppose you are the owner of a grocery store that is quite successful under a certain brand. Soon, you realized that the business model you debugged was quite successful, and therefore you decided to develop this area, attracting partners. You have chosen a franchise as a form of cooperation. How to start selling your brand? Roughly speaking, the question arises: “How to sell a franchise?”. We will answer it in this article.
First of all, think over all the details of how you will cooperate with your customers (franchisees) and on what terms. Determine how attractive your business may seem to them; find out how much it will be possible to charge partners for working under your logo in such a way as to enable them to earn money too. Decide on the terms of cooperation. To do this, we recommend that you familiarize yourself with how other sellers organize the franchise: read the contracts, scroll through brand books, instructions, and more. All this will give you some idea of how business processes are organized in this area and where you should move to offer your services in the market.
Unwind franchise
When you have a ready-made concept in your hands, you can think about how to sell a franchise. In general, this procedure is similar to the processes that arise when promoting any product on the market. In particular, first you need to promote your brand, then it’s profitable to submit it, and then sell.
With the promotion, everything is simple. Turning to our example: if your store has been operating in the market for many years and at the same time generates a sufficiently high profit, this will be the best advertisement of your brand. As you know, the main indicator of the quality of a franchise is its profitability.
You can submit your concept of transferring the right to use the brand by creating a public offer to everyone who wants to create your own store under your brand. You can lure people by describing all the advantages of your brand, as well as its advertising in terms of profitability and recognition in the eyes of customers. Plus, you need to take care of the distribution of your offer: for example, place an ad on the sale of the right to work under TM to specialized sites that have franchise directories. At the same time, it will be necessary to describe what your store is profitable for, which means that the franchise buyer’s store will be profitable, as well as to describe the terms of cooperation (lump-sum payment, royalties, requirements for the buyer and the total approximate amount of investment for starting a business).
Franchisee Support
You need to not only know how to sell a franchise, you need to think about one more important point - the help of a franchisee. The fact is that your success as well depends on whether things go with your customer or not. If the company is successful, your partner will take care of expanding the business, and the size of royalties will increase. At the same time, others will appear who want to start their own business. You will have new ways to sell franchises.
In order for your buyer to succeed, you need to support him. It consists both in the development of instructions and in indicating errors. To come up with what you will advise the buyer, preferably before selling the franchise.
Further development
Finally, take care of the further promotion of your brand. Post more ads online, run an advertising campaign. Come up with some special “chip” of your brand! In general, if you are looking for how to sell a franchise for a business, turn on your own creativity - and the decision will come!
