For a lot of franchise consultants or franchisors into direct franchisee recruitment understanding franchise buyer sentiment is imperative for sales. Here are some ways to help you get better at franchise negotiation and leverage the pool of returning workforce who would like to be rise as entrepreneurs in the post-COVID-19 world.
Understanding Franchise Buyer Sentiment
A majority of post-pandemic franchise buyers are convinced that they do not want to slave under someone. They are okay making less money, but they want to be the owners of their situation. They also want to own something where they can have their say but not take any uncalculated risks. As a franchisor consultant, you have to realize this pulse and present your offer and arguments that meet the curiosity and confidence of these potential franchise buyers.
Franchise Buyer Apprehensions
Remember, any serious franchise buyer will have more questions than someone toying with the idea of owning a franchise. The “what ifs” sway to the negative more than before. In this case, be reassuring without guaranteeing. Since most of these franchise candidates come from managerial and technological backgrounds, please encourage them to scrutinize your franchise strategy, operations, marketing, and support.
Present your Post-Pandemic Audit Report
Prepare to present your post-pandemic audit report. An audit report is a good way to convince franchise buyers about how you as a brand survived the economic slowdown. It fosters greater confidence in the potential buyer about your resilience. If your pre-pandemic performance wasn’t great, and you wonder how to present an audit report, then delay the event of recruiting franchisees and focus on re-emergence. Once you are ready in the next two quarters, you can then proceed.
Have a Clear Legal Standing
Did you run into some legal issues pre-pandemic, and is that going to have some impact on new franchisees? Do you expect a forthcoming legal issue for some unresolved corporate or public concern? It is great to have these questions that help you advance only after you have achieved clearance or a green signal from your legal consultants and state franchising monitoring board. The new franchise buyers are smart people. They have seen money going down. So, now, any ambiguity can lead you to lose your reputation besides a canceled deal.
Sell the Concept Before Selling the Brand
Selling the idea of franchising is a key part of the franchise process. The franchisor’s sales team may need to educate the candidate about the benefits and drawbacks of franchising. Other benefits candidates may not know to include the franchisor’s survival and even development through difficult times. For example, as a franchisor, you can refer to solid connections with system vendors willing to adapt the franchise system’s demands as it adjusted and price reductions. Show them your franchise operation manual so that they don’t feel like they’re beginning from zero. Help them with understanding franchise laws and regulations and guide them to Federal Trade Commission franchising guidelines♦