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Franchisors Should be Careful When "Selling" a Franchise


Franchisors should avoid the aggressive “selling” of a franchise; they should direct their efforts into providing prospective franchisees the information needed to make an educated and well informed decision. Learn why this is important.

When a person looks to invest in a franchise opportunity they obviously seek to “buy” a franchise. However, it doesn’t necessarily follow that those representing the franchisor should be “selling” the franchise. Although this may seem confusing, let me explain some of the reasons why.

The Person Representing the Franchisor Should Act as a Consultant

  • An aggressive franchise sales approach can lead to unqualified people purchasing a franchise. By unqualified I don’t refer to just financial or business qualifications but rather people unqualified to operate a particular franchise.
  • Franchising is the beginning of a relationship. An individual that invests in a franchise does so with a look to the future.
  • One of the most effective ways to qualify a franchise candidate is to carefully guide them to their decision by providing them valid information and clearly stating answers to their questions.
  • Use a franchisee profile and stick to it. If the candidate does not have the attributes contained in the profile they should not be granted a franchise.

The Person Investing in the Franchise must be as Objective as Possible

  • Be disciplined in maintaining your objectivity regarding a franchise. I advise candidates to be cautiously enthusiastic.
  • Follow a set process when you consider a franchise. You can find a number of articles on our website. Also you can visit the FTC site.
  • Always remember that the majority of franchises depend upon adding franchisees for growth. This can place added pressure on those who sell franchises to make a sale.
  • Have advisors with the business experience and qualifications who can provide you credible advice.
  • Gather as much information and feedback as possible from current and former franchisees.
  • Focus on the quality of the investment you are about to make.

Franchisors need to focus on making sure that prospective franchisees are properly guided toward making a decision based upon the long term interests of both the franchisor and franchisee. A strong sales approach by franchisor representatives may achieve short term results but can mean problems down the road.

Franchise candidates must avoid being “sold” but rather concentrate on the quality of the franchise investment.

© 2010 FranchiseKnowHow, LLC

Ed Teixeira is the President of FranchiseKnowHow, LLC. He can be reached at franchiseknowhow@gmail.com 


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