I recently attended the Franchise Success Summit, and heard Dr. Mick Riddiough speak. Dr. Mick Riddiough is the President at the Riddiough Group and has been working in and around franchising for more than 30 years. Most recently, his company provided high-level franchise development consulting for The Beef Jerky Outlet. In less than 20 years, Riddiough and his team have helped The Beef Jerky Outlet increase their number of franchised units 1,000%, from 9 to 92.

Just last week, Riddiough travelled to Raleigh, NC to share his 8 steps to effective franchise sales with dozens of leading franchise executives at the 5th Annual Franchise Success Summit. Here is a recap of what he shared with the group:

First – a few industry observations:

  • 31% of franchise brands have 5 or fewer units.
  • Franchise founders of leading brands, with fewer than 100 units, are likely not making the money they envisioned when they franchised the concept.
  • Growing to 50 units may allow franchisors to live off of royalties, but does not guarantee it.
  • A franchise is two companies in one, most failed franchisors focused far too much “on the biz” and not the franchise company.
  • And franchise sales are almost always the least understood part of the business– everything you do within your company affects franchise sales…everything!

Now – the 8 Steps to effective franchise sales:

  1. Identify who you want as franchisees – Don’t be afraid to BE PICKY and make sure there is a strong match between their needs/desires and your franchise offerings/requirements.
  2. Create an effective Franchise Lead generation program – Identify important messages for prospects that help increase response rates and prioritize partnering with an excellent marketing/PR firm who can help ensure those messages are heard/received.
  3. Best sales team you can afford – People buy from people, period. When it comes to franchise sales, your team must share the same ethics as your brand’s leadership AND must be able to communicate those with prospects.
  4. Implement proven franchise sales/qualifying process – Prioritize two-way communication and don’t forget: late in the sales process, the key is often “high touch & low tech” (i.e. make it personal and caring to separate yourself).
  5. Constantly re-evaluate and make adjustments – Make adjustments as needed based on data, not feelings. Dig deep into your CRM system and available data/metrics.
  6. Implement a fantastic on-boarding process – you have ONE opportunity to make a quality first impression with your franchisees.
  7. Create strong ongoing franchisee support program – Keep constructive feedback channels open; from existing owners to candidates. (Note – no positive validation = no sales).
  8. Repeat steps 1-7 as needed – It’s not an annual physical…it’s a daily check up!

And Three Final Takeaways:

  1. DO NOT GIVE UP: If you are going to stay in franchising, you have no option. Build/Grow Your System or Perish!
  2. Every successful franchise company stumbled over franchise sales when they started. Don’t be discouraged!
  3. You either have, or you can find, the talent and resources required to build your company at the franchise level.

For more information on what was learned at the Franchise Success Summit, check out the LinkedIn showcase page.

 

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