Franchise Sales - It's a Business Deal
Are you struggling to sell franchises? Thinking about franchising your business and want to learn what it takes to sell franchises?
Then this article is for you.
Whatever the case, the good news is there are simple things you can do that will not only make a huge difference in your franchise sales close rate - they will also make everybody’s life easier.
The better news is you don’t have to sell to sell, which is good. Selling is hard.
The first thing you’ll want to wrap your head around is the buyer's process, i.e. the way prospects research and buy a franchise most likely has nothing to do with your sales process.
The information franchise buyers want to know might be buried somewhere in your sales pitch or PowerPoint presentation or webinar or drip email or whatever else you throw at them, but by the time you get to it you probably already lost them.
Here’s the thing; today’s franchise buyer could care less about your sales process, PowerPoints or webinars – until they are ready for that information and tell you so.
They want to be in business for themselves, but they don’t want a sales pitch. They don’t want to be sold.
Instead of starting off with an information dump, try spending some serious time getting to know your prospect. I mean really get to know them. Make it all about listening - not jumping in, selling the features and benefits of the franchise opportunity.
Be sure to take notes (my favorite way to keep from interrupting - we all do it) and keep digging until you have a good handle on your prospects goals, issues, challenges, concerns and what their personal idea of success is, and if it’s possible for them to achieve that level of success with your business model.
Only then can you present a practical solution and proposal, which may or may not be the franchise concept you are selling - because it is now all about what is important to them.
The more they see the likelihood of their personal and financial goals being met with the franchise you are offering, the more likely they will buy.
There really isn’t any selling at all.
You won’t believe how much more relaxed and enjoyable this way is. And when you do close deals, you will have recruited high quality, long-term business partners.
Can you still sell franchises the old-fashioned way?
Sure. Hard sell tactics will nab a deal every now and then. But the prospect that allows you to get away with that has virtually zero chance of being successful.
And if your franchisees start dropping like flies because you signed up people who had no business being in your business in the first place, no sales process in the world can save you.
It’s a Marathon, Not a 5K
Competitive marathon runners pace themselves to reach peak performance as close to race day as possible. They know that if they peak too soon, they will burn out and either miss the race - or blow up during it.
Same thing goes for franchise sales.
It’s important for you – not your buyer - to set the pace so they don’t burn out during the process, which when done right should take about 90 – 120 days.
If they are hot, hot, hot ready to go after the first telephone conversation - actually anywhere in the process up until a few days before Discovery Day, your job is to slow them down, down, down.
And if you get caught up in the excitement and encourage them to peak too soon thinking you already have a deal, they will almost always fade away from exhaustion - and you’ll be left wondering what happened to the hottest prospect you ever had.
Close But No Cigar
A lot of sales staff I talk to think they are losing the deal at the close, and that all they need is a better closing technique.
But a franchise sale isn’t a sale at all; it’s a business deal. A killer closing technique won’t induce someone to enter into any investment that isn’t attractive to them.
What caused the deal to fall through happened during the process, not at the close. The close gets the blame only because that’s where you normally get the final answer.
Even if it’s no answer.
If you are losing deals at the close, you need to fix the process. We can show you how.
Bad News First is Good News
That’s probably not exactly true, but it’s pretty close. As a matter of fact, there have been studies about the order in which people prefer to deliver and receive bad news.
Turns out the majority want to deliver good news first, but when we’re on the receiving end - we’d rather get the bad news first.
If there are any problems or potential deal killers in your offering, get them on the table as early as possible. No matter what, make sure to point them out before your buyer gets the Franchise Disclosure Document (FDD) so there aren’t any surprises.
If “bad news” kills the deal early on, it would have killed the deal later anyway. Especially if your buyer finds the bad news out on their own without you telling them first.
Remember, all franchise offerings have problems and potential deal killers lurking somewhere, so it’s not as big a deal as you think.
What is a big deal is building trust with your prospect by being authentic and as upfront as possible - right from the start.
Warning: Do Not Try This at Home
Even though I use “you” and “yours” in this and other sales articles, the articles are actually intended for your sales staff or person.
If you’re the Owner, Founder and Sales Department, be sure to read the article; "FSBO – For Sale by Owner."
To be successful selling franchises, you as the owner and founder should be the last, or one of the last, people your prospect talks to during the sales process.
Not the first
To learn more about how franchise buyers research, move through the process and buy franchises in today’s market, be sure to read the article; "Franchise Sales Rhythm".
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If you would like to learn more about how we can help you with franchise sales or just have a question looking for a straight answer, give me a call at 321.392.3000 Ext 1, or use the Contact Form to set up a call.