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The FR Factor

Being a franchisor means being responsible for a business network and brand. The franchisor is ultimately responsible for the brand and the franchisees within. This involves providing the overall support and resources the franchisee needs to succeed as well as ensuring that the franchises are being operated to a certain standard. They are  responsible for training and recruiting new franchisees as part  of growing the franchise and brand.

So what happens when a franchisee wishes to move on?

The franchisor has the final say, however the seller also has a vested interest in what happens next. How do you protect your franchisees and do what is best for them whilst looking after your business and brand?

One of the best things you can do for your franchisees is to ask them to plan their exit. No matter if they have just started or if they have been with you for a number of years. The best protection for you and for them is an exit strategy. If a franchisee has these plans in place you can be assured that they are working towards an end goal and will be doing everything they can to create a successful business.

The exit plan is just the beginning of a franchisee exit. From the minute they decide to sell their business there are many decisions that need to be made.

One of these is who will be your new franchisee? This is your decision as a franchisor, you know what type of person you want to have in your network.

There are many factors to consider here: can the prospective buyer meet the financial responsibilities of the businesses after the initial purchase. It may be an established business they are buying however there are still ongoing costs once the new franchisee has taken over. The last thing you need is to find a great candidate only to find out they may not have the finances to cope with running a business.

Are they a strong leader? The overall reputation of your brand can suffer even if just one franchise out of many performs badly. You must be able to assess your prospective franchisees on their leadership qualities and experience in leadership roles.

Communication skills are also vital for your new franchisee, not only will they be expected to show excellent customer service skills within their new business they will also have to show they can communicate within the franchise itself. Communication is so important in business, for building relationships between franchisees and franchisors as well as between staff and customers.

Depending on their reason for selling and your relationship with your franchisee finding the right candidate can be a difficult process. They are still responsible for the day to day running of the business and may not have the time to vet all of the possible candidates, which will then fall to you. This is a waste of your time and theirs. Having the right candidate is so important. You will need to have a new franchisee who will push the business forward and make a success of it.

Whilst you are ultimately responsible for the franchise as a whole, the day to day running of the franchises is down to the franchisees, Ensuring that staff contracts are in place with clear roles outlined is something that should be done from the beginning, however it is essential when your franchisee wishes to sell and to ensure a smooth sale of the business.

The franchisee must also make sure that they continues to run the business effectively. This can be difficult during the sale of a business. They may not look as hard or have the time to scrutinise a candidate before passing them on to you. This can be frustrating for you and your franchisee.

You need the FR Factor: Protection for both you and your franchisees.

For your franchisees, deciding to sell doesn’t have to be a hassle. Our process will help them focus on getting their business into the best possible position to sell whilst we screen potential candidates and arrange meetings when we believe we have the best possible person to be your new franchisee.

One of the positives of our system is that it saves you time. You do not have to spend time going through an extensive list of candidates for the right one. We can help your franchisees plan their exit and when the time comes put that plan into motion.

We can help you to protect your franchisees which in turn protects you and your brand. We have over 150 years combined experience in franchise resales. We understand what you expect from your franchisees. We help your franchisees prepare their business for sale, point them in the direction of the right solicitor and banking contacts, offer advice on different aspects of the sale as well as helping your franchisees establish the right price and finding the perfect franchisee.

The most important aspect of your franchisees selling their franchise for them is getting the right price. The most important aspect of your franchisees selling their franchise for you is getting the right franchisee to take over and grow the business.

The upcoming National Franchise Show in Birmingham is the perfect opportunity for you to meet our team. Why not book an appointment and see how we can help to protect you as well as your franchisees. Call us on 01522 246811 or email marketing@franchiseresales.co.uk

 

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Your Favourite Store Could Well be a Franchise

Most people don’t realise the brand name shop they are walking into is actually a franchise. It’s become a more popular way of operating a business model in recent years but has actually been around for centuries.

From MacDonald’s burgers and Subway sandwiches to your local opticians or favourite pub chain, many companies use the franchise process to expand their brand at a lower cost than normal. In the process, they provide great opportunities for entrepreneurs who want to run their own business.

The key to a franchise is that you get a licence to use a particular company’s brand and trade openly under their name. For instance, if you decide to take on a Domino’s Pizza franchise, you are allowed to use all their branding, products and sales processes and essentially operate as one of their outlets although you are a business owner in your own right.

To do this, of course, you need to invest your own money in the business. How much will depend on the franchise opportunity being offered. In return, you get access to support and the supplies you need to run the business successfully, as well as ongoing training to develop your entrepreneurial skills.

People choose to take on a franchise because there is less risk compared to starting a business from the ground up. You are involved with a brand that already has a track record and has shown its potential to succeed. There is normally an upfront cost to pay and then ongoing payments for things such as stock as well as employee wages to cover. Some budding entrepreneurs use running a franchise as a stepping stone to finally developing their own business idea.

Some of the most popular franchise opportunities today come through easily recognisable household names. These include fast food companies such as KFC and Pizza Hut, gym services like Premier Sport and Anytime Fitness and car hire businesses like Europcar. But it’s not just big names that are involved in franchising. There are literally hundreds of franchise opportunities available across a range of different industries, companies with a proven track record who are now looking to expand.

Taking on a franchise is, like any business development, a pretty big undertaking even if it does have less risk associated with it. It’s not just the initial investment in the franchise but a case of choosing the right fit which works for you as an individual. Most franchisees look for people with the potential to expand their brand – they are often willing to give you the training and support you need as long as you meet their profile.

It’s not simply a question of finding entrepreneurs who have the money to invest. After all, there is a brand and a reputation to protect so franchisors want someone coming on board who is more likely to succeed than not. In other words, they want a business owner who will enhance their reputation, not damage it.

The Franchise Professionals have an ILM recognised seminar specifically designed to enable you to find out more about becoming a business owner as a franchisee. click her to find out more

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Why People Buy from Brands

One of the major advantages of taking on a franchise is that you have a readymade brand to work with. There are a number of reasons why this makes sense, not least the availability of a proven product and, hopefully, all the support you need when you decide to come on board.

But why to do people buy from brands in the first place? Here are just a few reasons:

Peace of Mind

People like to be sure that they are getting the right product or service for them. A well-known brand comes with a reputation for delivering what is required, wherever it’s bought in the world. Peace of mind can’t be underestimated when it comes to people’s buying behaviour. That doesn’t mean they aren’t prepared to look at new products and services on the market but they will be more likely to choose a brand they recognise when they want a specific outcome, particularly at short notice.

Quality Guarantee

Along with peace of mind, is the fact that a settled brand provides the quality that customers are looking for. Whether that’s a cereal that always tastes good when you pour on the milk or a car that brings more miles per gallon and comfort. Quality products, fast delivery and strong customer services are all part of those brands that have strong core values. This leads to loyalty amongst advocates and is an essential part of the emotional attachment to chosen brands.

Value Added Extras

People may choose a brand because of its value added extras, the things that competitors don’t deliver or don’t deliver as well. A prime example would be Apple iPhones that not only give customers a recognised design and feel to their products but also extras such as quality app, music and media downloads.

Reflecting Values

Brands work best for customers when their core values match each other. So, for instance, if one of your key concerns is the environment and climate change, you are more likely to opt for a brand that has sustainable working practices and has made key commitments to reducing their impact on the world around us. If you are concerned with good, healthy eating at a low cost then you might be attracted to a supermarket brand that has a wide range of fresh vegetables that are organically produced at a price you can easily afford as well as ethically sourced.

Sharing and Social Acceptance

People like to fit in with other people who share their world view. That’s why demographics are so important when a product is being marketed to the wider world. The brand will have a specific customer in mind but those same customers will want to fit in with their peers as well. So clothing brands become popular amongst certain types of young adults, who want to maintain their standing amongst peers, and all subcultures develop their own trends that brands can connect with.

The major factor in brand development is making that big emotional connection with consumers. Once people feel something for a product or service then they are more likely to use it again and again. Don’t forget that each of us has our own brand, good or bad, as well. A computer geek may well favour a brand that is pushing the boundaries of tech rather than one that produces the same old product each time.

People buy from brands because they fulfil their core needs and wants and if you can find what appeals to your chosen demographic and deliver it in spades, then you have a head start over your nearest competitors. When it comes to buying a franchise, this aspect of business development is already in place.