If you plan to recruit owners and sell franchises, you need to be prepared to answer the burning questions that your prospects will be asking. As you franchise your business, part of your preparation will be anticipating these critical questions and preparing the answers that your prospective franchisees need.
Here are a few of the most common questions:
How Much Is the Investment to Franchise Your Business?
When your prospects are asking this question, they want to know how much they will have to invest in order to open and operate their business. They need to know the franchise fee, any other required purchases, and estimates for things like insurance and utilities. Be as accurate as possible with your estimated investment so that your investors are as prepared as possible.
The second part of this question is unspoken, but just as important: What does an investment in your brand get your franchisees? With the number of franchise opportunities on the market, your candidates have lots of options, and will pick the one that gives them what they need to succeed. When you franchise your business, make sure that you offer your targeted franchisees more than just a brand name.
How Do I Qualify?
Finding and qualifying franchisees is key to your franchise growth. When you are starting out, you may be tempted to sell your concept to anyone who is willing to pay the franchise fee. While this may bring in revenue in the beginning, it is a bad business strategy if you want your brand to have longevity. Spend time contemplating and researching what will make a successful owner of your franchise, make a list of traits and experiences, and stick to it. Then, when you have prospective investors in front of you, refer back to that list to make sure you are rewarding franchises wisely.
What Financing Options Do I Have?
Investing in a franchise can be the biggest investment your owners ever make, so they need to know their options for financing that investment. Some franchisors offer in-house financing for all or part of the franchise fee, while others work with preferred financing partners. Still, others do not offer financing assistance to their franchisees. Whatever your brand does is up to you but be prepared to discuss financing with your prospects.
How Much Money Can I Make?
The million-dollar question. Your prospects will always ask this question, but it is difficult to give an answer. For one thing, over-promising to your franchisees can land you in trouble. Additionally, there are several factors that influence your franchisees’ earnings and each owner is going to have different results. Your franchise disclosure document may include earnings estimates, so always refer candidates to the FDD to address these questions.
Ready to franchise your business? Accurate Franchising, Inc. can help. Get in touch with us to speak with a franchise consultant!