Finding a Trade Show Franchise Sale

The 21st century, in its first decade, is looking like it will be the century of the franchise. Its impossible to drive to any of the thousands of shopping centers and malls anywhere in the world, or down the main thoroughfares of any major suburban areas, and not pass franchise after franchise, ranging from restaurants, to dollar stores, to cellular providers, to fitness centers.

A huge number of people both recognize and patronize the franchise giants. But not nearly as many realize that there are hundreds, if not thousands, of other franchises offering marketable products or services without commanding huge franchising fees. It is the relative anonymity of these franchises, in fact, which makes them ideal opportunities for someone who understands the ins and outs of the franchising business.

A franchise sale is one way the franchising company has of helping sway those who are still on the fence to commit to starting their own franchise. Smaller franchisors are always on the lookout for prospective clients, and will use every means possible to generate a franchise sale.

The Franchise Trade Show

The Internet has opened up the franchise market to millions of people who would otherwise have had no idea how to enter it. There are even estimates that seven out of ten franchise sales leads come from the Internet, with direct mail, word-of-mouth, and print ads accounting for the rest. But many small franchisors still rely on the tried-and-true expos and trade fairs for each franchise sale.

The most important franchise show is the International Franchise Expo, and unlike industry trade shows, it is designed strictly to bring together a franchisor and prospective franchisee in the hope of generating a franchise sale. Most of them are held on weekends, and one way in which a franchisor can increases its chances of making a franchise sale is to stay in the area for a couple of days after the trade show.

Following Up And Making The Deal

To accelerate the franchise sale process, franchisors may arrange follow-up seminars to their most promising sales prospects. Some of them will even offer discounted franchise sale prices as a way to seal the deal before they leave the area.

By allowing buyers a chance to get in the door at a lower than normal cost, the franchisors are giving the investors the chance to get their franchises on a paying basis much more quickly than would otherwise be the case, and that can often be the deal-maker.

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7 Steps To Franchise Your Business

Do you ever think that your particular business has become too successful? Of course not, anyone who is successful in business desires nothing less than success out of their business. But there are times when the business of doing business becomes overwhelming because the demand for services and products has exceeded the ability of a local business to provide for an ever-growing customer base. Perhaps it’s time to consider franchising. Franchising your business is a great way to continue in the success and growth of your particular business beyond your personal capability to oversee and run that business. If you have people asking if your business is for sale, or if you provide franchise opportunities, then it’s definitely time to consider whether or not franchising is the right move for your business. If so, here are the steps that are necessary to make sure that you franchise in the right way.

Step 1 - Branding

Your franchise needs to be branded. When people look at a business for sale, the biggest draw to buying into a franchise rather than starting a new business is the value that comes from recognizable branding. If you have a good logo, quality name, and reliable service that is associated with your brand and your product, then not only will customers buy it, but franchisees will buy it, too. Spend the time and money it takes to brand your business well so that it will recognizable and desirable.

Step 2 - System

When someone looks for a franchise opportunity, usually they desire to own their own business but are looking for a business plan or model that is proven to work. When deciding to franchise it is imperative that you develop the system that franchisees will follow. This is important for two reasons, the first is that you want your future franchise owners to succeed for themselves and you want them to appreciate being a part of your franchise. The second reason is that you want to make sure that your franchise owners are not giving your business a bad name. By providing a system that represents you and your business well, you allow everyone involved in your business opportunity to provide a unified business model that customers will appreciate.

Step 3 - The Support Service

Franchise investors are looking for business for sale because they want assistance. If they had it all figured out for themselves they would be running their own business, not looking for a franchise for sale. It is critical that just as you work to maintain customer service and support with your customers that you develop and maintain service and support with future franchise owners. The number one priority for most franchisees is that the franchiser provides extensive training on how to run the franchise and ongoing support throughout the course of the business to ensure them that they will not be left alone.

Step 4 - The Financial Arrangements

You want your franchise to be a good value. Something that people will want to invest in and feel like they are going to profit from being a part of your business. You also want to make it clear that your business is to be taken seriously, and there is an element of personal investment and risk involved in not putting everything you have into running a franchise. It’s important to understand the agreement you will have between franchise owners, what costs you will charge, what percentage of profits or fees will be paid to you to maintain service, support, supply, etc.

Step 5 - Recruiting Franchisees

So you’ve decided to franchise? That’s not going to mean much if there is no one that wants to purchase a franchise from you. Franchising is a whole new level of sales and marketing. There are a variety of websites that provide matching services and lead generation for franchisers. Decide what fees you are willing to pay, what costs you can dedicate to advertising and recruiting and find a way to promote your business. You now have two things to sell, the product or service you provide to your customers, and the business as a profitable venture for your franchisees.

Step 6 - Becoming a Franchiser

Now that you are ready to actually franchise there are a few more steps to take. Seek expert advice from the British Franchise Association. It’s invaluable in providing a wealth of unbiased step-by-step information for potential franchisers. Research the market to ensure that products and services are competitive, valuable, and desired in multiple areas. Test the franchise in the form of a pilot operation lasting at least 12 months or longer. The pilot scheme should be undertaken at more than one location in order to test the concept in differing geographical and economical areas. Establish a central management core. This will probably mean turning over your original business to competent successors so that you can focus on managing your operation as a whole. Finally, develop marketing, sales, and advertising strategies to promote the franchise network.

Step 7 - Join the BFA

Once you are a franchiser, join the British Franchise Association. The benefits of membership are many including: Publish recognition and credibility, increased public awareness of member franchises through BFA pr and publications, inclusion on the BFA website, national and regional forums and training, assistance with international development of member franchise networks and much more.

If you have understood the value of becoming a franchise operation, it means that you understand the importance of networks and business coming together and sharing information and helpful tactics. The BFA is a great association that provides many small business owners with ways to become large franchise providers. Not only will you experience growth and success as a franchise owner and operator, but you are also providing countless others through your franchise the chance to fulfill their dreams of becoming small business owners themselves.

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2007 Franchise Review - Understanding the Franchise Business Model

The Modern Day Franchising Model is perhaps the greatest business strategy ever created in the history of mankind. Why you ask? Well, franchising pays dividends to both Franchisee and Franchisor in a Win/Win Situation. When the Franchisees win the Franchisor wins in increased brand name and royalty income.

As the brand name increases the Franchisee finds more loyalty in their customer base and the Franchisor finds a greater number of new entrants wishing to buy into the franchise system as new potential team members or Franchisees. This allows the Franchisor to be more choosy in which potential new team member candidates they decide to sell to and thus strengthens the system again with better franchise buyers with more capital, business acumen and strength of character. Of course each new strong Franchisee increase the strength of the Franchise System.

In franchising it is not merely a Win/Win for the Franchisee and the Franchisor, because such strength in the market place allows for a larger organization, which benefits off the economies of scale and that means lower prices for consumers and customers. Those who partake in the products and services of the franchised outlets also have piece of mind knowing that they will receive quality, great service and consistency. Once the franchise system gets going and if it is run properly it is like a rocket ship.

Is there a downside to franchising? Indeed there is but it is probably not what you think. The Franchising model is a highly regulated industry even though it has the lowest number of complaints, almost nil on a percentage basis and of the less than 1% of complaints that are received each year nearly 70% are unjustified and bogus. Then there is the litigious nature of the franchising industry where lawyers have hijacked the laws and regulations and worked too closely with regulators to mold the rules to their benefit. Some call this a parasitic relationship and few could argue case, expect the self-serving lawyers.

As a Founder of a Franchising Company, I built my company from 53 units in 39 cities where we regionally dominated our industry sub-sector to a full-fledged franchising company serving 450 cities, 110 markets after selling franchises in 23 states and 4-countries. Having built the company literally from scratch and knowing every single job like the back of my hand, I feel qualified to help you understand and discover all you need to know about The Franchise Business Model. I thank you for reading my article and perhaps this article is of interest to propel thought in 2007?

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