Although a franchise partnership can be a great opportunity for a business and its franchisee, it’s also a lot of work. And it’s that work that sets the negotiation process apart from other types of business deals. So, to ace a franchise negotiation like a pro, here are the eight negotiating strategies you can use right now.
Know What You Want!
Asking questions is one of the best ways to figure out what you want. You’re the one who has to go there and face your partners, so you need to be as clear and specific as possible. Franchise agreements can be very lengthy, so getting caught up in all details is easy. But as important as the details are, you still need to keep an eye on the big picture.
Come Ready to Negotiate
Partners know a lot about your business. They should respect that fact. So when you arrive at the negotiation table, you should be ready to give them the respect they deserve. You should also be ready to let your partners know you.
Have Bottomline Clarity
Partners know your bottom line, but they also need to know what you want. They need to know what you’re looking for, and they need to know why it’s worth walking away from the opportunity if what they’re offering isn’t it.
Get to the “Why”
Before you even start talking price, you need to get to the “why.” This part of the negotiation process will help you reach your bottom line. What are the benefits of joining this partnership? Why is this deal right for you? This is where you start honing in on the benefits of being a franchisee.
Be Flexible
As you start negotiating, it’s important to be flexible. If you and your negotiation partner can be flexible and understand the other person’s needs, goals, and expectations, you’ll have a much easier time negotiating a deal.
Demand Reasonably
As a franchisee, you need to push back during the negotiation process and make the demands. Be careful about making these demands because it needs to be a reasonable push for the deal. You don’t need to be unreasonable.
Keep Your Calm
When negotiating a franchise deal, you need to keep your emotions in check and at head level. Don’t get defensive even when your negotiation partner makes a demand that you want to push back on. Now, when it comes to the negotiation process, don’t be afraid to walk away from the table.
Be Ready to Leave
Now, when it comes to the negotiation process, don’t be afraid to walk away from the table. With all of the pressure on both sides and the tendency for one side to get frustrated and angry, walking away from the negotiation table isn’t a bad idea.
Franchise Negotiation: Conclusion
Negotiation is a tricky game. Successful franchise negotiation requires you to walk a fine line between trying to get what you want while also ensuring that you’re not crossing the line with your partners. These eight strategies for negotiating a franchise dealer can help you walk that line and get the franchise deal you want while also giving your partners the respect they deserve.
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