Once you have set up your franchise system with a few franchisees, the task now, is to increase your franchise network. With the below tips in mind, you can ace your challenge on how to sign up more franchisees to your franchise system.
It might sound like the most obvious thing to do when we mention maintain healthy franchisee relationships. Because nothing compares to a good referral from the existing franchisee network. The existing franchisees must feel valued, connected and optimistic about the future. Most importantly, they must feel like they are receiving reasonable financial returns from the business in place. This will enable them to become active and strong supporter of their franchisor.
This can be beneficial to both the franchisor and franchisee. For the franchisee, this saves his efforts in building new franchisee relationships to expand his market. Also this limits the overall number of franchisees thus making it a a tight and trusting group to work with in the long term. In addition, this could also mean a new lease of life for a franchisee who is looking to exit the system after an initial term.
Though there will be a significant part of the resources allocated to recruit new franchisees from outside the network, you can encourage internal references too. Like we mentioned before a good reference can work for all the parties involved. However, for this to happen, it is crucial that the existing franchisee feels completely satisfied and supported.
It is not wise to pick anyone who is willing to enter your franchise network. A franchisor needs to have clarity on what kind of franchisee will fit the business. Discuss their qualities like, experience, financial capability, passion, time commitment, expectations and cultural fit. It is better to deny franchise dealership based on these criteria. Further, it is essential to maintain the quality of your franchise system for the overall health of the business.
Dont get trapped in sales or training mindset. Understand what is the expectations and questions in the franchisee’s mind, and try to anwser them. Do not just lecture them about how good your franchise model works. You can do this by asking opened questions. A well prepared candidate will know about your business and what interests them in it.
For instance “What is your interest in our business?” or “What do you hope to achieve by joining our network?”
Give them a chance to work in the franchise system to understand their capabilities and strengths. Moreover, this also gives the potential franchisee a better understanding if the franchise system they wish to be a part of.
It will be good idea to invest in a dedicated franchisee website. As the information that they are looking for will be very different from the consumers. This dedicated franchisee website must include most FAQs and all important areas that makes them stand out from competition. For instance, positive statistics about your industry, what gives your business an edge over competitors, why your franchisees have a great life, and why this is a good financial investment. Most importantly, this helps you track all the queries and traffic for franchise enquiry.
Source: Coleman Greig
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