Franchise Foundations - How To Franchise

When the documentation phase is over, momentum gathers with the start of the exciting implementation phase. This is where the sparks begin to fly as franchises are sold, the new franchise owners are taught and trained, and opening assistance is provided. It’s also when most new franchise companies make serious mistakes that haunt them for years or even decades to come.

The reason: most new start-up franchise management teams have not been trained in how to properly operate their new business, nor can they afford to hire a six-figure, salaried person with franchise management experience. Our solution: provide new franchise companies with in-depth franchise training instructional workshops as well as on-going, as-needed advice based on three decades of excellence and experience in franchise industry best practices.

Our instruction is affordable, practical and will save your company tens of thousands of dollars initially and even more going forward (and, of course, not having to pay a yearly six-figure salary for franchise management experience).

Resources are often wasted because the new company has not been schooled in the art of selling franchises. Or franchises are sold without carefully screening the would-be franchise owners. As the saying goes, one bad apple can ruin the entire barrel. Even in the best case scenario, marketing mistakes are costly. Some companies spend tens of thousands of dollars are inappropriate marketing and media choices.

In the worst case situations, marketing mistakes result in a significant diversion of franchise management time and effort on a continuing basis as attempts are made to cope with marginal franchise operators. Or, as marginal operators morph (as they will) into disgruntled franchise owners, they can and often do file franchise lawsuits in an attempt to break away from the network and recover monetary damages. When that happens, it will cost a fortune to defend the lawsuit - whatever the result.

The introduction of franchise litigation attorneys, discovery and hearings in arbitration or court is not only very expensive, it takes a toll on the entire franchise organization. A retrospective look back at these troubled franchise networks reveals the cause – they failed to realize they were in a new business: the business of franchising.

They believed everything could be done by existing personnel, and the only expertise needed was the franchise disclosure document and franchise operations manual they were given, along with an invoice and a handshake. Just when the new franchise management team needs training by an outside franchise expert the most – when the franchise development program enters the implementation phase – companies make a critical mistake of trying to cut costs and do it on their own.

Training of the franchise management team in specific areas, like franchise marketing, organizational development, etc. combined with taking some key implementation steps can minimize these franchise risks and help the new company get a great start in its new business. The topics covered in training conducted by Mr. Franchise over three training workshops include:

• Delegating responsibilities and training existing personnel in how to run the franchise company

• Establishing profile requirements for franchise buyers

• Best media to use in selling franchises

• Proven ways to reduce franchise marketing costs

• Developing a franchise application form

• Developing a franchise brochure

• How to process franchise leads

• How to respond to different types of leads

• Conducting franchise Discovery Days

• Recognizing and avoiding red flags that arise in franchise marketing

• When and how to close franchise sales

• Establishing a franchise sales control system

• Developing a disclosure compliance program

• Documenting contacts

• Creating business records and files

• Training new franchise owners - strategies and tactics

• Implementing the critical franchise support function

• Developing a feedback mechanism for franchise owners

• Implementing a franchisee advisory council

• Strategies for reducing annual auditing costs

• Detecting and avoiding legal pitfalls in franchising

For information on pricing of our management training series, see the Franchise Budget page of this website.

This how to franchise a business series continues with the first training area Franchise Marketing 101