Table of Contents
Many franchise opportunities become available daily, and franchising as a method of brand expansion is only increasing in popularity. You should consider several aspects to make your franchise opportunities stand out and attract your ideal franchisees. This article will explain several tips for franchisors who want to appeal to prospective franchisees.
1. Be Truthful
Every franchisor looking to expand their business will want to make their franchise opportunities sound lucrative and appealing. However, franchisors can face legal trouble if they oversell franchise opportunities by making untrue or exaggerated claims.
To avoid misrepresentation, be truthful when making statements about your franchise business. By ensuring you are truthful, you are more likely to attract quality franchisees aligned with your brand’s vision and goals.
2. Have a Proven Business Model With a Track Record of Success
Having a successful business is far easier said than done. However, prospective franchisees want to invest in opportunities likely to generate substantial profit, making their time and investment worthwhile. They will look at your business’ history to judge whether there is potential for success and assess whether your business model has a proven track record of success. Demonstrating your brand’s successful history can help you attract franchisees.
Remember that truthfulness is vital; do not exaggerate success. If you do not yet have an established business model or a track record of success, it is likely not the right time to franchise your business.
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3. Establish Your Brand
More established brands will attract more potential franchisees than those that are less established. A good level of brand recognition provides a solid foundation for a new business. To establish your brand, think about the following:
- appropriate marketing;
- brand image and reputation building; and
- curating identifiable branding (and protecting your brand’s intellectual property rights).
4. Advertise Franchise Opportunities Appropriately
You must consider how and where you advertise your franchise opportunities to reach the right audience. The most appropriate advertising location and formats can depend on:
- your brand’s industry; and
- the type of people you seek.
You should tailor your advertising to the type of individuals you want to attract.
5. Communicate With Existing Franchisees
Prospective franchisees should conduct due diligence when considering a franchise opportunity. Before signing the franchise agreement, they will assess the opportunity and your brand to decide whether their investment would be well-placed.
Prospective franchisees may talk to any of your existing franchisees when they conduct their due diligence. This way, they can determine whether the opportunity is right for them. You could also be proactive and enable potential franchisees to meet with an existing franchisee.
As essential as it is to draw attention to your franchise opportunity when building your network, it is also crucial to ensure that you onboard the right people. Allowing potential candidates to speak to existing franchisees will enable them to make a well-informed decision about joining.
This handbook covers all the essential topics you need to know about franchising your business.
6. Provide Good Support
Franchisors must train and support their franchisees. Training and support provisions vary across franchise businesses. To make your opportunities stand out, you should offer a robust initial training program for new starters. Additionally, you should provide solid support mechanisms for the duration of the franchise agreement.
7. Be a Member of a Franchise Association
There are several franchise associations available for franchisors to join. Franchise associations are organisations that support both franchisors and franchisees. They offer events and training and set professional standards.
Franchise association membership can indicate to potential franchisees that you are a reputable franchisor. In the UK, franchise associations include:
- the British Franchise Association (BFA);
- the Approved Franchise Association (AFA); and
- the Quality Franchise Association (QFA).
BFA membership, for example, shows that your franchise network adheres to franchising best practices and professional standards.
Key Takeaways
This article has explained tips for franchisors and prospective franchisors for attracting prospective franchisees. The following table outlines each tip discussed.
Tip for Attracting Potential Franchisees | Explanation |
Be truthful in your advertising | Truthfulness is vital to avoiding misrepresentation claims and costly legal disputes. By being truthful, you will also attract those most aligned with your brand. |
Have a proven business model | Prospective franchisees will look for opportunities that are likely to bring them success. A proven business model and a franchised brand’s track record of success can indicate this. Show prospective franchisees your brand’s success so far. Alternatively, if your brand and business model have not yet been successful, it might not be the right time to franchise. |
Establish your brand | An established brand is a potential indicator of success for potential franchisees. |
Advertise appropriately | Advertising location and format matter when marketing your franchise opportunities. Consider the ideal type of person you want to attract to your network and gear your advertising towards them. |
Allow candidates to talk to existing franchisees | Enabling prospective franchisees to speak with your existing franchisees can help them decide whether the opportunity is right for them. |
Provide good support to franchisees | Solid ongoing support mechanisms can differentiate your franchise opportunities from others. |
Join a franchise association | Franchise association membership indicates to prospective franchisees that you run a reputable franchise system and engage in franchising best practices. |
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