Franchisors Need to Avoid Wasting Their Franchisee Leads
November 9, 2017
It’s a well- known fact, that when franchisors strategize their system growth, the major focus is placed on the amount and quality of their franchisee leads. However, if there isn’t a program in place to maximize the productivity of candidate leads the growth of the franchise network will be severely hampered. All the money and human resources invested in lead gen will be for naught if a franchisor doesn’t have the right program in place. Industry surveys and data continue to indicate that it requires from 1 to 1.5% of all total leads to produce one new franchisee sale. In other words, it takes 100 leads to complete one new franchise transaction. Obviously, it’s critical to maximize ROI on the leads franchisors pay for, which includes costs for PR, SEO programs, PPC and Ad Portals. It’s a waste of money to pay for leads and not have a complete franchise development program in place.
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There’s More to a Franchise Than the Fees
October 31, 2017
When prospective franchisees consider choosing among various franchises to invest in, the most immediate consideration is usually how much is the franchise fee and other ongoing payments like royalty and advertising fees. Although these items are an important part of the decision- making process, they are not the only items that need to be evaluated.
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Monitoring your Consumer Sentiment Is Key to Selling your Franchise
October 12, 2017
Of all the products in the Franchise Intelligence platform, Consumer is the most innovative. For the first time in the franchise industry, franchisors can view the comparisons and relationships between consumer satisfaction for the products or services a franchise offers and the performance of the franchise system.
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It’s the Market Before Location, Location, Location
October 10, 2017
Anyone that’s worked in retail or franchising has likely heard the term location, location, location countless times. However, by placing so much attention on the location franchisors can overlook the importance of the market the location is serving. My saying is: “A good location in a poor market is the same as a poor location in a good market.” Often, poor franchisee performance is attributed to a poor location.
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Crucial Statistics based on Franchise Industry Experience
September 27, 2017
For franchisors, brokers, attorneys and franchise financial investors to make the right decisions it’s important to have access to the right information. One of the benefits that Franchise Grade includes in our Franchise Intelligence portal is our Reports product. Acquiring data on specific franchise sectors and categories is a requirement that franchise industry professionals need to meet their objectives. This information extends to independent business owners who are considering franchising their business rather than simply relying upon the advice of a franchise consultant.
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How Franchisors Can Build Brand Recognition
September 20, 2017
In a recent study by the research team at Franchise Grade has indicated that 71% of franchise systems have 100 or fewer franchise units and 58% have 50 or less. We consider this segment to be “emerging” franchises. They represent a diverse group ranging from startups to small franchise systems, with a few exceptions, they have limited market penetration and lack brand recognition.
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How Franchise Brokers Can Distinguish Themselves
September 8, 2017
When a prospective franchisee contacts a broker, one of the first questions they ask is if their preferred territory is still available. Depending on the response, this question leads to a lengthy process of trying to match the prospective franchisee with the right franchise. We find the territory and franchise location receives more focus than the quality of the market. It’s important to remember though, that a franchise broker should also qualify a candidate, identify the best franchise from their portfolio and help complete the franchise transaction.
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Franchisors Should Have Key Competitor Statistics
August 25, 2017
Since franchisors operate in a highly competitive environment it’s critical that franchise development staff have as much data on their competitors as possible. Their knowledge should extend beyond knowing the initial franchise fee, quality of the franchisee territory, royalty fee and details regarding Item 19 disclosure. This type of information, which is accessible for prospective franchisees in an FDD or a franchisor website, provides limited insight into a competitor. As franchisee candidates review their investment options they will acquire crucial information.
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The Importance of Benchmarking Franchise Performance
August 21, 2017
Franchisors looking to establish an effective franchise expansion strategy need to have the proper tools to be successful. This means having a quality Franchise Disclosure Document and a track record of successful franchisee performance. Constructing an effective franchising strategy starts with knowing who your competitors are and how well they are performing. You need the ability to compare your franchise system performance to your competitors, both strong and weak. Benchmarking your franchise system against your franchise category, franchise sector and individual franchises requires the right data.
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The Most Successful Franchises Know Their Competitors
August 18, 2017
A sign of a successful franchise system is knowing your competitor’s franchise offering. When we speak with top performing franchisor executives regarding their success, a common response was how well they knew their competitors. This knowledge was the result of hard work on the part of the franchisor and its franchisees. It means that each competitor is analyzed. It requires knowing how the key components of competitor Franchise Disclosure Documents compare to your franchise.
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