Do You Really Know Your Franchise Prospects?

February 2009 Franchising World

Taking the time to “peel the layers” closes more deals and seals lasting franchisee relationships.

By Monty Smith, CFE

Stress levels in franchising are at an all-time high, and franchise develop   ment teams are feeling the burden now more than ever. With unit sales slumping as a result of decreased consumer spending, franchisors are putting extra heat on their development teams to sign deals, at the very least to boost cash flow that comes from initial franchise fees.

Along with this heavier-than-usual pressure to turn leads into deals, also comes a dangerously-high risk of   over-ambition, and falling into the “sell, sell, sell” trap. Franchise sales teams, feeling the heat from their franchisors to keep the deals flowing in the struggling economy, can easily get lost in the one-track world of closing deals. Unfortunately, too many franchise sales executives strive to earn what they see as the prestigious label: The Closer.

But here’s a reality check: Franchise deals involve human beings, real people who are making significant, life-changing decisions. Closing a franchise deal is not like making a final sale for a product or service. Once they sign along the dotted line, you’ve got them for many years to come, often 20 years or more. It’s not the end. It’s the beginning of a long-lasting relationship.

As with any important relationship, there should be a real, concerted effort to get to know this person, really get to know him. Many franchise-development teams, brokers and consultants say they are doing so, but is it mechanical, or is it sincere? Are they digging as deep as they can? There is saying you are doing it, and then there’s really doing it.

Getting to know your prospects on a deeper level has two benefits. First, the more you pour yourself into getting to know somebody, the more you appear attractive to them—increasing the likelihood of a sale. Secondly, the more you know about a candidate in the early stages, the more you set a foundation for mutual success for both franchisor and franchisee down the line.

This means truly putting yourself in their shoes and     gaining deep insight into their perspective. It means knowing them enough to feel their passions, and their pain. In doing so, only then can franchise development teams fairly ask the questions: Can our vision be a solution for them? How can our franchise opportunity be a solution for them and their families? Getting to know a prospect also means learning as much as possible about their families as well. Before they join your family, you must understand theirs.

In the past year, our franchise-development team has closed a record—76 deals for new franchises. But in our system, we look down upon the term “The Closer.” Our franchise sales success isn’t the result of pressure to sell and seal deals, rather, it’s tied to a carefully thought out sales process. At the core of this process are the virtues of empathy, selectivity and clarity.

Empathy simply involves seeing the “person behind the lead” and truly understanding their passions and motivations, while selectivity relates to carefully sifting through the large volume of leads that flow in, and being mindful that you do not sell franchises, rather you award the franchise to qualified individuals. This mindset significantly relaxes the sales process, and leads to a desired result for both the franchisor and the prospect.

Below are several thoughts to consider regarding humanizing the franchise sales process:

Examining Key “Prospect Predictors”
Certain characteristics are strong indicators of whether or not a prospect is a good fit, as well as help you gauge their future performance. Consider the following:
   • What do they want from business ownership? If return on investment is their sole motivation, you should not award them a   franchise. There should always be a passion for the franchise concept, its service offerings, or the general premise of customer service.
   • Are they following the franchise development process? This is a good indication on their future behavior as a franchisee.
   • Do they understand what is expected of them when they join the team?

Understand the Pain and Passion of Their Lifestyle and the Decision-Making Process
It is important to put yourself in the prospect’s shoes. In many cases, they have been in the corporate world for several years, accustomed to structure and other people calling the shots. While making a change such as owning their own business is exciting to them, it’s also scary. Prospects should feel that you, as a franchisor, understand the significant nature of this decision-making process.

Familiarize ourself With the Candidate’s Family
Get the spouse involved at the beginning of the process, and also learn as much as you can about other members of the family. Knowledge of a prospect’s family culture offers critical insight. For example, an overly-cautious or non-supportive spouse can spell immediate trouble. On the other hand, learning about their and their children’s goals can help you determine if your franchise opportunity is the right solution.

Establish Expectations
Consider the following questions:
   • What do we expect from the business owners we work with?
   • What does the franchisee expect from the franchisor?
   • How are you communicating the opportunity to the lead? For years, we were telling prospects the wrong story about our franchise concept. Today, we share our vision from their perspective.

“Meet the Team” Day
The phrase “Meet the Team” is used to describe this event for a reason. When a candidate makes the concerted effort to travel to your corporate office, this is the opportunity for each party (franchisor and prospect) to learn the truth about each other. It is the responsibility of company executives to make sure the candidate gets the real picture. You can’t let them make decisions in a vacuum, which is often the case when they are sold by a salesperson. At PuroClean, we involve our entire executive team to ensure maximum communication in the decision process.

Meet-the-Team provides the ideal opportunity to erase any misconceptions the candidate may have about the concept. For example, at our franchise, we go through an exercise where we purposefully ask them: What is PuroClean? Their answer usually is: “a property damage cleanup service.” Then, we typically correct them by saying, “Yes, but, we are more than that. We are in the business of customer service. We serve people. We serve agents. We serve property owners.” While this isn’t the first time they’ve heard this, it’s a critical part of who we are, and we take this opportunity to reinforce this important piece of our concept identity.

Also, at this point, it’s important to provide the prospect with all the information needed to make a decision, but beware of overload. If you are giving a presentation, remember the rule: “Do unto others as you would have them do unto you.” Be direct and to the point. Ensure that you are not “talking heads.” Allow time for company executives to get to know the prospects and get comfortable with them.

Be Sensitive to a Prospect’s Personal Issues
Recently, a prospect’s mother passed away during the closing process. We halted the process to allow the woman to grieve and be with her family, forgetting about pressures to close yet another deal for the year. Weighing the situation, it was the right thing to do in the long term for both parties. In the end, she joined and became a productive and profitable franchisee.

Provide Interested Candidates with Varied Perspectives
Franchise sales is all about the process. As with any process, others should always be   involved. This ensures that the candidate has additional perspective outside of what he may receive from the salesperson. You should involve existing franchisees, but don’t wear out your welcome. While it’s tempting to continually call upon your highest performing, well-spoken franchise owners to validate for prospects, use them sparingly. Again, having the prospect meet the entire corporate team provides necessary exposure to the many personalities that affect the franchise’s culture.

Franchise sales is a process that involves learning about the many aspects of the candidate and gaining insight into their motivations, and sometimes stepping back and slowing things down. The most successful franchise development teams have learned the art of carefully peeling away the label of a “prospect” to understand the human being that lies underneath. This is the beginning of what often is a twodecade relationship, and there needs to be a process that works for the franchisor and franchisee alike.

The impact of making a sale in franchising goes beyond that of selling products. It’s changing people’s lives, presumably for the better.

Amid the pressure of the times to “sell, sell, sell,” don’t get caught up in sales quotas and dollar signs. In franchising, a salesperson must look beyond those things and consider the human being. Don’t be so anxious to reach the point of signing on the dotted line that you overlook the individual. After all, it is the goodwill of your franchisees that ultimately drives your growth.

Monty Smith, CFE, is vice president of franchise development for PuroSystems, Inc., the parent company of PuroClean. Smith can be reached at msmith@purosystems.com .