Five Ways To Fast-Track Sales For Your Franchise Start-Up

I’ve seen it time and time again. A new franchisee full of energy and ready to go has a delay in the launch of their new franchise and opens up later than planned. Although the delays were caused by a various factors the damage was done. Sales are slow to come and limited franchisee working capital can be exhausted ahead of schedule. Franchisors want their franchisees to get a fast start. It benefits both parties.
The first 90 days are critical. Franchisees that get off to a fast start increase their probability for success and faster sales growth. Here are five tips for getting your new franchise off to a fast start.
1. Start Marketing Before you Open for Business

Whether your franchise is in food or business services you can start to market your business before your official opening. Request some literature from your franchisor or develop your own with the franchisor approval. If your business is in food you can contact local businesses and organizations to pre-sell the benefits and features of the new business. Regardless of the type of business, you can identify your target market and do some pre-marketing. If its business services join a local organization or trade group so you become known to the members before starting.
2. Have your Location Pre-Selected

If you’re operating from a fixed location start your search for your location in advance of signing the franchise agreement. If you’re moving along in the franchise process there is no reason why you can’t start looking for a location. With few exceptions a real estate broker will start looking for locations without it costing you any money. Work with your franchisor and try to get pre-approved so you’re ready to go once the franchise agreement is signed. Line up your contacts for equipment and leasehold improvements.
3. Recruit your Franchise Staff in Advance

Unless you’re operating a one person franchise you’ll need some employees to operate your franchise. Start your recruiting efforts in advance so that you can remain on schedule. By recruiting earlier in the process you’ll learn how difficult it will be to find staff and what the labor costs are like.
4. Have your Vendors Ready to Go

The franchisor should have a list of recommended or approved vendors for its franchisees. In some cases you may need to use a combination of vendors you find and those provided by the franchisor and other franchisees. Don’t wait a week or so before you plan on opening to make arrangements with your vendors.
5. Be Sure your Franchisor Follows Through

You should be able to rely upon your new franchisor to assist you with fast-tracking your start-up. Although there are some activities you may not be able to perform until you’re a franchisee, the ones I’ve indicated shouldn’t be problem. Keep in mind that before your franchisor devotes some time to your pre-planning they must feel you are likely to sign the franchise agreement. Otherwise you’ll be on your own. Finally, if you’re not getting the assistance or cooperation you need from the franchisor it could be a signal of things to come.

When it comes to starting up a new franchise operation, time is of the essence. The longer you wait to get your franchise started the more challenging the task. There will always be unanticipated occurrences when starting up a new business and with proper pre-planning you’ll minimize the impact from these unplanned events.

Get To Know the Franchisor Before You Buy the Franchise

When buying a franchise, it’s important to evaluate the franchisor. This article will present tips on getting to know the franchisor before you sign the franchise agreement.

Purchasing a franchise is just the beginning of what should be a long term relationship. In many cases a new franchisee is looking at a franchise term of ten years, with an option for another five years. During this period of time both the franchisor and its franchisees will face several unexpected challenges. Some may arise during the normal course of business while other challenges may suddenly crop up. The recession of 2009 is an example of an event that came quickly and with devastating results.

On an individual basis, franchisees can face problems on a business and personal level. Quite often this will lead the franchisee to seek some form of assistance or support from their franchisor.

Because a franchisee must operate the franchise according to the terms of a franchise agreement, which will favor the franchisor, it’s important to gain a good sense of understanding regarding how the franchisor administers the franchise on a day to day basis. You should develop a profile of the franchisor in order to get to know them.

Here are some indicators that can help you develop a franchisor profile, based upon your interaction with the franchisor and its franchisees.

The Franchise Sales Process

The way a franchisor handles the sale of new franchises can reveal quite a bit about the franchisor. Using franchise brokers versus in house sales staff may indicate that the franchisor is looking for fast growth or may lack the capital to fund its own sales staff. Another important factor: Was your request for franchise information processed on a timely basis?

* Did you receive an e-mail acknowledging your interest in the franchise?
* Do your e-mails or calls to the franchisor sales staff generate a prompt response?

Poor performance by the franchisor in this fundamental area can mean that they are understaffed, overwhelmed with requests or not as responsive as they should be. You’ll need to keep these things in mind at the start of your inquiry into a specific franchise opportunity.

Discovery Day

A key step in the franchising process is to meet with the franchisor during their discovery day.Some franchisors try to schedule the corporate visit at an early stage in the franchising process. Typically, this occurs after the franchise application has been submitted and approved. This is the time when a franchisor will evaluate a franchise candidate and try to close the sale. Although your focus will be to gain added knowledge regarding the franchise, ask questions and perhaps negotiate terms of your franchise agreement, this is also an opportunity to gain further insight into the franchisor.

* Did you receive an agenda prior to the meeting?
* Did the key members of the franchisor staff participate?
* How helpful was the franchisor regarding your travel and lodging requirements?
* Were you able to meet a key member of senior management?
* How responsive was the franchisor to your questions or requests?
* If the franchisor staff is aggressively trying to sell the franchise it can be a “red flag.” Typically, a solid well managed franchise company won’t take this approach.

Overall, your objective during discovery day is to carefully observe and make mental notes regarding the franchisor staff. This should be another component of your franchisor profile.

Franchisee Feedback

* Your most credible source of information about the franchisor will come from existing franchisees. During your conversations with existing franchisees it’s not unusual to focus most of your time upon the operational aspect of the franchise. However, it’s also important to use this opportunity to learn about the franchisor. Here are some questions that will help you put the finishing touches on your franchisor profile.
* Has the franchisor delivered as promised?
* If no, what happened?
* Have you had a need to seek assistance from the franchisor and if yes how did they respond?
* Do the franchisor staff and senior management respond promptly to e-mails and phone calls?

Purchasing a franchise is an important and potential life changing decision. Since the franchisor is the critical part of the franchise relationship it’s important to gain as much knowledge about the franchisor as possible. You’ll be engaging in an imperfect science, however, it’s important for you to “know the franchisor” before signing on the dotted line.

© 2010 FranchiseKnowHow, LLC