Category: Web Marketing

WHY CREATING CONTENT IS ESSENTIAL FOR YOUR FRANCHISE GROWTH

Posted on by Contributing Writer

Image created with canva 

 

Incorporating consistent content creation into your marketing strategy is a proven method for growing your franchise. It boosts your SEO, strengthens your brand’s social presence, and generates more qualified leads

 

WHY CREATING CONTENT IS ESSENTIAL FOR YOUR FRANCHISE GROWTH

 

By FMM Contributor

 

Creating consistent content is essential for franchise growth, enabling you to build brand awareness, enhance your SEO, attract leads, and strengthen your overall franchise sales strategy. Here’s why:

SEO and Consistency

Consistent content creation is a key driver for improving your SEO. Search engines like Google prioritize websites that regularly publish fresh, relevant content, making it easier for potential franchisees and customers to find you. Incorporating location-specific SEO strategies also helps each franchise location rank higher in local searches, ensuring that your brand remains visible in different markets​. Additionally, using keyword-rich content that resonates with your audience helps boost organic traffic. High-quality backlinks from reputable websites can further elevate your search ranking, signaling authority to Google​

 

Social Media: Building Brand Trust and Engagement

Leveraging social media is another cornerstone of consistent content creation. Social platforms allow franchises to tell their story, showcase franchisee success, and engage directly with both local communities and prospective franchisees​. Franchises that regularly post localized content, run promotions, and engage with followers build trust and increase brand loyalty. For example, user-generated content (UGC) such as customer reviews and testimonials provides social proof, making your brand more relatable and authentic​

Social media also allows for targeted advertising, enabling franchises to reach their ideal audience based on specific demographics. Platforms like LinkedIn are especially effective for generating franchise sales leads, offering access to a network of professionals who might be interested in owning a franchise​

 

Lead Generation and Franchise Sales

Content marketing drives lead generation by providing valuable information that educates and engages potential franchisees. By consistently delivering content that addresses common questions or concerns, you establish your brand as a thought leader in the franchise industry. This builds credibility and helps attract high-quality leads who are more likely to convert into franchise owners​

Content doesn’t just bring in leads—it nurtures them. Email campaigns, social media posts, and blog articles all contribute to keeping your franchise top-of-mind for prospects. By showcasing your success stories, detailing franchisee experiences, and highlighting growth opportunities, you can create a sense of urgency and excitement around your brand​

 

Conclusion

Incorporating consistent content creation into your marketing strategy is a proven method for growing your franchise. It boosts your SEO, strengthens your brand’s social presence, and generates more qualified leads. By telling your story authentically and regularly engaging with your audience, you can set your franchise up for long-term success.

 

Sources:

Seotactica

Latitude Park

HigherVisibility

TopFire Media

 

LEARM MORE HERE 

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This post was researched, outlined and edited with the support of AI

FRANCHISE GROWTH SOLUTIONS & ADP TO HOST EXCLUSIVE NEW YORK FRANCHISOR FORUM – NOVEMBER 1, 2024

Posted on by Contributing Writer

Image created with canva

Franchise Growth Solutions and ADP are hosting the New York Franchisor Forum on November 1, 2024, at ADP’s NYC office. This event is for franchisors and those interested in franchising, offering key strategies and expert advice to grow their franchise brands. Registration is open until October 25, but space is limited, so reserve your spot now!

FRANCHISE GROWTH SOLUTIONS & ADP TO HOST EXCLUSIVE NEW YORK FRANCHISOR FORUM – NOVEMBER 1, 2024

Franchise Growth Solutions is excited to announce the New York Franchisor Forum, an exclusive one-day event for franchisors and anyone considering franchising their business, on Friday, November 1, 2024, at ADP’s NYC office.  This highly anticipated Event is designed to equip franchisors with the essential strategies, insights, and connections needed to expand and scale their franchise brands effectively.

Event Details:
Date: Friday, November 1, 2024
Time: 9:00 AM – 4:00 PM
Location: ADP NYC Office
One Penn Plaza, 23rd Floor
New York, NY

CHECK THE AGENDA BELOW

Meet the Speakers & Panelists:

The New York Franchisor Forum will feature some of the most accomplished leaders in the franchising and business sectors. Here’s a closer look at the panelists who will be sharing their expertise:

Gary Occhiogrosso

 

Gary Occhiogrosso is the Founder of Franchise Growth Solutions, a co-operative based franchise development and sales firm. His proprietary “Coach, Mentor & Grow Program” focuses on helping Franchisors with their franchise development, strategic planning, advertising, selling franchises and guiding franchisors in raising growth capital.

Gary started his career in franchising as a franchisee of Dunkin Donuts before launching the Ranch *1 Franchise program. He is the former President of TRUFOODS, LLC a 100+ unit multi brand franchisor and former COO of Desert Moon Fresh Mexican Grille.

Gary was selected as “Top 25 Fast Casual Restaurant Executive in the USA” by Fast Casual Magazine as well as begin named Top 100 Franchise Influencers in 2021, 2022, & 2023 by SEO Samba and 1851 Magazine.

In addition, Gary was an adjunct associate professor at New York University on the topics of Restaurant Concept Development, Entrepreneurship and Franchising. He has published numerous articles on the topics of Franchising, Entrepreneurship, Sales and Marketing. He is also the author of the E-Guide: Is Your Business “Franchiseable”?

He was the host of the NYC’s “Small Business & Franchise Radio Show” and currently the host of the podcast “MasterMind Minutes.” Gary is also the publisher of the online magazine FranchiseMoneyMaker.com as well as a contributing writer for Forbes.com

OPTIMIZING LEAD GENERATION

Rafael Viaud

 

Rafael Viaud, VP of Business Development at Executel, is a charismatic leader with over 15 years of experience in driving business growth through strategic networking and lead generation. His expertise in market expansion and operational excellence has led to significant sales achievements across the Finance, Technology, and BPO sectors. He brings a wealth of knowledge in client acquisition, team building, and data-driven decision-making.

Sean McKay

 

Sean McKay is a seasoned expert in web design and digital marketing, currently leading business development at Site Hub. With over a decade of experience, Sean has successfully cultivated a strong client base in Government, B2B, and niche sectors, specializing in branding, web design, and advertising.

Matt Jonas

 

As the President and Co-Founder of TopFire Media, Matt Jonas has more than two decades of experience in digital media and franchise marketing. Under his leadership, TopFire Media has become one of North America’s premier marketing agencies, focusing on lead generation and strategic branding. Matt’s insights will bring valuable marketing strategies to the forum.

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MANAGING ROGUE FRANCHISEE AND ENFORCING FRANCHISE COMPLIANCE

Harold Kestenbaum

 

With over four decades of experience, Harold Kestenbaum is a franchise law expert who has served as general counsel to major franchisors, including Sbarro, Inc. His deep knowledge of franchise law, combined with his practical experience as a franchisor, makes him a leading authority on franchise compliance and management.

Lisa Oak

 

A franchise development and business growth strategist, Lisa Oak has held leadership roles within the SUBWAY® organization and has advised emerging brands. With expertise in executive coaching, negotiations, and strategic planning, Lisa has helped shape the growth of several franchise companies.

Paul Gucciardo

 

As Brand President at Sobol, Paul Gucciardo is a skilled negotiator with extensive experience in franchise system development, team building, and account management. His expertise will offer attendees practical advice on managing operations within franchise networks.

Victor Turcanu

 

Victor Turcanu is an attorney with Spadea Law specializing in franchise law. His legal expertise ensures that franchise operations remain compliant and protected from legal challenges.

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PRIVATE EQUITY IN FRANCHISING

Alicia Miller

 

Alicia Miller is the Founder and Managing Director of Emergent Growth Advisors, a strategic advisory firm that focuses on franchising and private equity. She advises franchise management teams on growth challenges and helps private equity firms with strategy and value creation. As a former multi-unit franchisee, Alicia brings a unique operator’s perspective and has written over 80 articles on franchising. She is also an advisor for the International Franchise Association’s CFE program.

Michael Ledecky

 

Michael Ledecky is the Founder and Managing Partner of Clay Path Partners, an entrepreneur-led search fund that helps business owners transition their companies while preserving the founder’s legacy. His private equity insights will shed light on the critical role of investment in franchise growth.

Robert Tobias

 

Robert Tobias, founder of Elite Franchise Capital, has spent two decades specializing in strategic investments within emerging franchise brands. His extensive experience in franchise management and expansion will provide attendees with actionable strategies for growth.

Sean Whitehead

 

Sean Whitehead, an investor with NewSpring Capital, brings expertise in private equity, with a focus on fostering franchise growth through strategic investments. His insights will guide franchisors on how to attract and leverage private equity.

Scott Romanoff

 

Scott Romanoff brings nearly three decades of experience from Goldman Sachs, where he served as a Partner for 12 years. During his tenure, he worked in both New York and London within the Investment Banking Division and the Executive Office. Scott led Corporate Development and co-headed the Financial Institutions Financing Group, advising on debt and equity financing as well as risk management. He also held key leadership roles, including Co-Chair of the Significant Acquisitions Oversight Group and served on the GS Bank Management and Firm-wide Finance Committees.

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Strategies and Tactics for Effective Franchise Sales

Daniel Claps

 

Daniel Claps, CEO of Voda Cleaning & Restoration, is a serial entrepreneur with a background in franchise lead generation and business development. Known for his innovative approach, Daniel has co-founded several successful ventures in the franchise sector.

Ben Woodruff

 

Ben Woodruff, CEO of Whoops, is a seasoned franchise leader with over 20 years of experience. His focus on performance metrics and strategic planning has made him a successful operator and leader within the franchise industry.

Aimee Kirvan

 

Aimee Kirvan is the co-founder of Kirvan Consulting, a franchise development and sales organization. With over 20 years of experience in the restaurant and service sectors, Aimee specializes in franchise sales for start-up and emerging brands.

Free Registatration:
https://events.adp.com/profile/form/index.cfm?PKformID=0x80694abcd&source=FranchiseGrowthSolutions

 

For more information contact Camila Mojica at [email protected]  (201) 534-5610

HOW FRANCHISORS HELP FRANCHISEES MARKET AND ADVERTISE IN THE LOCAL MARKET

Posted on by Contributing Writer

While franchisees are encouraged to adapt marketing strategies to fit their local market, maintaining brand consistency is critical. Franchisors often provide strict branding guidelines, ensuring all marketing materials adhere to the company’s established image. From logo usage to color schemes and messaging, these guidelines help franchisees create localized content that still reflects the brand’s identity, reinforcing brand recognition across all markets.

 

HOW FRANCHISORS HELP FRANCHISEES MARKET AND ADVERTISE IN THE LOCAL MARKET

 

By Gary Occhiogrosso, Founder FranGrow

 

One of the principal reasons entrepreneurs invest in a franchise is the support provided by the franchisor, particularly in marketing and advertising. Local marketing is crucial for franchisees, as it helps drive customers to their specific location while maintaining the brand’s overarching message. In this article, we explore the various ways franchisors assist franchisees in effectively promoting their local business, ensuring both parties’ success.

 

National vs. Local Marketing: A Symbiotic Relationship

Franchisors typically handle national marketing through large-scale campaigns to build brand awareness across multiple markets. However, while national marketing helps establish a broad presence, it may not resonate with local audiences. To address this, franchisors often develop strategies that allow franchisees to tailor marketing efforts to their unique market while maintaining the brand’s integrity.

Franchisors usually provide franchisees with marketing guidelines, advertising templates, and digital tools that can be customized to fit the local community. These resources enable franchisees to align their promotions with regional trends and consumer preferences without compromising the brand’s overall identity.

 

Marketing Support from Franchisors

Franchisees benefit from several layers of support that help them run localized campaigns:

  1. Advertising Fund Contributions

Most franchises require franchisees to contribute to an advertising fund, typically a percentage of their revenue. These contributions are pooled to fund national and regional campaigns, but many franchisors set aside a portion for local marketing efforts. Franchisees can use these funds for promotions, social media advertising, and local events, with the franchisor’s guidance to ensure alignment with the brand.

  1. Cooperative Marketing Programs

Many franchisors implement cooperative marketing programs, where multiple franchisees in a specific area pool their resources to run joint marketing campaigns. This collaborative approach allows franchisees to maximize their advertising budget while ensuring a cohesive message across multiple locations within the same region.

  1. Digital Marketing Tools

In today’s digital age, franchisors often provide franchisees access to tools for managing social media, SEO, and online advertising. These platforms allow franchisees to create localized campaigns, run Google Ads, and optimize their website for local searches. With guidance from the franchisor, franchisees can target specific demographics within their local market, driving traffic to their stores.

  1. Marketing Training and Resources

Effective local marketing requires the right tools and the proper knowledge. Franchisors typically offer ongoing training in marketing strategies, covering areas like social media management, customer engagement, and public relations. Some franchisors even provide dedicated marketing consultants who work closely with franchisees to develop personalized marketing plans for their local area.

  1. Localized Promotions

Franchisors often create promotional materials that franchisees can customize for local events, holidays, and community initiatives. Whether sponsoring a local sports team, participating in a charity event, or running a holiday promotion, these localized efforts help franchisees connect with their community while benefiting from the franchisor’s brand recognition.

 

Leveraging Data to Target Local Audiences

Many franchisors provide franchisees with access to customer data and analytics tools. By analyzing local customer behavior, franchisees can develop their marketing to meet specific needs and preferences. For example, a franchisee might discover that certain products are more popular in their market, leading them to focus promotions on those items. This data-driven approach enables franchisees to make informed marketing decisions that resonate with their local audience.

 

The Importance of Brand Consistency

While franchisees are encouraged to adapt marketing strategies to fit their local market, maintaining brand consistency is critical. Franchisors often provide strict branding guidelines, ensuring all marketing materials adhere to the company’s established image. From logo usage to color schemes and messaging, these guidelines help franchisees create localized content that still reflects the brand’s identity, reinforcing brand recognition across all markets.

 

My Final Thoughts

Franchisors play a pivotal role in helping franchisees market and advertise their business at the local level. Franchisees are equipped with the resources needed to effectively engage their local audience through advertising fund contributions, cooperative marketing programs, digital tools, training, and localized promotions. The support franchisors provide ensures that franchisees can capitalize on their local market while maintaining brand consistency, ultimately contributing to the franchise’s success as a whole.

 

LEARN MORE ABOUT FRANCHISING & ADVERTISING HERE

 

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This post was researched, outlined and edited with the support of AI

10 KEY TIPS FOR EMERGING FRANCHISE BRANDS TO ACCELERATE GROWTH AND SALES

Posted on by Franchise Strategist

Photo by Ron Lach

Given the highly competitive nature of the franchise marketplace, where countless brands vie for attention and dominance, having a steadfast foundation is indispensable. It equips franchises with the tools and infrastructure necessary not only to weather potential storms but also to capitalize on new opportunities that arise.

10 Key Tips for Emerging Franchise Brands to Accelerate Growth and Sales
By Gary Occhiogrosso Manageing Partner, Franchise Growth Solutions

The franchising world is an arena of immense opportunity, teeming with the promise of expansion and profitability. For emerging franchise brands, however, breaking through the noise and establishing a strong foothold can seem daunting. The journey from a fledgling concept to a household name demands more than just a compelling product or service; it requires strategic planning, market understanding, and tenacity. Whether you’re in the early stages of franchising or looking to supercharge your brand’s growth, the following tips will provide invaluable insights to accelerate your trajectory and boost franchise sales. Dive in to discover how to make your franchise dream not just a reality, but a resounding success.

Comprehensive Digital Presence: Leverage the internet to establish a solid online presence. Utilize search engine optimization (SEO) techniques to ensure your franchise opportunity appears at the top of relevant searches. A well-designed website, regular blog updates, and active social media channels can significantly boost visibility and credibility.

Robust Training and Support: Prospective franchisees are more inclined to invest when they receive ample training and ongoing support. Offering detailed training programs, marketing support, and continuous updates ensures franchisees have the tools they need to succeed.

Transparent Financial Data: Provide clear and transparent financial projections and performance data. Potential investors want to know about the ROI and profitability of the franchise. Where legally permissible, use Item 19 of your Franchise Disclosure Document (FDD) to present this information.

Franchisee Validation: Encourage prospective franchisees to speak with current franchise owners. The most convincing sales tools are positive testimonials and firsthand experiences from existing franchisees.

Use an FSO (Franchise Sales Organization): Collaborate with a reputable Franchise Sales Organization. They can introduce your brand more quickly and to a larger pool of potential investors, They provide valuable feedback on refining your offering. Unlike broker networks, FSO’s represent only your brand, not an inventory of brands that often include your competitors.

Targeted Marketing and Advertising: Invest in targeted marketing campaigns to generate leads. Platforms like Google Ads and Facebook Ads allow you to reach specific demographics, ensuring your message is delivered to those most likely to invest.

Streamlined Discovery Process: Create an efficient and engaging discovery process for potential franchisees. This can include webinars, discovery days, or virtual tours. The aim is to educate the prospect while building excitement about the opportunity.

Competitive Franchise Terms: Ensure your industry’s franchise fees, royalty structures, and other financial terms are competitive. Offering financing options or partnering with lenders can also make your opportunity more accessible to potential franchisees.

Continuous Innovation: Stay ahead of market trends and continuously innovate in product offerings, technology, and operational processes. Demonstrating a commitment to innovation shows potential franchisees that you’re invested in the brand’s long-term success.

Build a Strong Franchise Community: Foster a sense of community among your franchisees. Regular communication, conventions, and support networks can help franchisee retention and lead to word-of-mouth referrals from satisfied franchise owners.

Incorporating these strategies into your franchise model can be transformative. By actively integrating them, emerging franchises can gain significant traction, allowing them to rise swiftly in their respective sectors. But the benefits go beyond mere growth. These strategies lay down a robust foundation that ensures the brand remains resilient and adaptable in the face of future challenges. Given the highly competitive nature of the franchise marketplace, where countless brands vie for attention and dominance, having a steadfast foundation is indispensable. It equips franchises with the tools and infrastructure necessary not only to weather potential storms but also to capitalize on new opportunities that arise. In essence, while these strategies propel brands to higher heights in the short term, they also pave the way for sustained success and relevance in the ever-evolving franchise landscape.

HOW BUSINESS AND CONSUMERS CAN STAY SAFE DURING THE ONLINE HOLIDAY SHOPPING SEASON

Posted on by Franchise Strategist

Doing holiday shopping or making financial transactions when a device is on a public network can be risking identity theft.How are companies safeguarding consumers from identity theft and other forms of fraud? With a thoughtful approach that combines forward thinking with cutting-edge technology.

How businesses and consumers can stay safe during the online holiday shopping season
COURTESY OF BRAND POINT

(BPT) – The 2021 holiday shopping season is bound to break records. The National Retail Federation predicts an increase in sales between 8.5-10.5% over last year, and a record 87% of shoppers plan to shop online, according to PYMNTS.com. That’s an increase of 13% in online holiday shopping compared to last year.

In fact, approximately 263 million people in the U.S. are currently online shoppers. This dramatic growth in online shopping, especially over the holidays, brings with it increasing concerns about keeping accounts safe and secure from fraud — both for consumers and for the companies where they do their shopping. More than four out of ten (42%) consumers expressed concerns about security when shopping online, according to recent reports.

According to Juniper Research, retailers could lose over $20 billion in 2021 due to online fraud, which includes identity theft, illegal access to online accounts, using forged or stolen credit cards, SIM card theft and more.

Customers and companies can play an important role in protecting themselves from fraud over the busy holiday shopping season.

How customers can help defend their accounts from fraud

From the customer point of view, here are three things that can help keep accounts safer while shopping online:

1. Be password smart. Using stronger passwords, such as phrases, and making sure each password is unique for each account will improve security. A password manager is a good way to beef up security, as it generates stronger, unique passwords and keeps track of them.

2. Shop with trusted vendors. Buying from familiar retailers is usually safer, as is going straight to the website, and avoiding clicking on links from ads on social media or random emails. This comes down to KYB (“Know Your Business”): Customers need to ensure that the website where they do their shopping is secure. Does the web address begin with “https”? Are user authentication protocols in place, and do they offer secure checkout?

3. Stick with secure networks. Doing holiday shopping or making financial transactions when a device is on a public network can be risking identity theft.

How are companies safeguarding consumers from identity theft and other forms of fraud? With a thoughtful approach that combines forward thinking with cutting-edge technology.

How companies are working behind the scenes to help protect consumers

Companies today take identity theft and fraud seriously, as it affects their bottom line — and jeopardizes their relationships with customers. Fortunately, technology is constantly advancing to help safeguard against fraud and stay one step ahead of the criminals. This is more crucial than ever when holiday shopping online is at an all-time high, and online fraud and identity theft are, too.

“Protecting companies and customers against predatory behavior is increasingly difficult, as online fraudsters continue evolving and adapting,” said John Troutman, director, Digital Identity Expert Team at TeleSign. “Just as fraud attempts become more complex, protection for any business must keep up with that complexity. We use multiple approaches, tailored to each client, to find the most effective, up-to-date solutions.”

Here are three ways companies use innovative technology to guard against theft and fraud:

1. Two-factor authentication

Companies and financial institutions improve security by adding another step to verify customer identities. With two-factor authentication, the business sends a single-use authentication code to a customer’s email, phone (voice) or text (SMS).

However, even two-factor authentication has one area of vulnerability: Identity thieves trying to access an account could enter their own phone number to obtain the authentication code, or in some cases, can even swap out the SIM card on a customer’s cell phone.

Fortunately, TeleSign, an authority on fraud protection and safe e-commerce practices, helps corporations guard against these and other threats with products and services to help them evaluate customer behavior and detect signs of fraud.

For example, behavioral attribute insights determined using TeleSign’s Score product can identify safe and unsafe activities. This technology helps companies “see” into network actions to determine the answers to these questions:

  • Is the text behavior abnormal?
  • Is abnormal activity happening at off hours?
  • Are numbers calling or texting a customer from unusual area codes?
  • Is a customer’s number being used for malicious purposes?

These insights help detect unusual use of a cell phone to let companies know that there’s a problem. This high-level analysis helps keep customers safer, and works to avoid account takeovers and fraudulent activities.

TeleSign can also help determine the status of a customer’s phone number to see if it is active, and can do a recent SIM card check to see if a SIM card was swapped.

2. Knowing their customers

With millions of transactions being conducted over a busy holiday shopping season, how does a company know their customers well enough to detect fraudulent activity on their accounts? They need to use Know Your Customer (KYC), an approach which relies on A.I. and machine learning to accurately assess patterns in behavior — and detect changes in those patterns, which could signal fraud or identity theft.

TeleSign uses advanced Application Programming Interfaces (APIs) to help companies know their customers better. APIs deliver user verification, data insights and communications to help companies prevent account takeovers, support company ecosystems inside and out, minimize fraudulent transactions and securely verify customer phone numbers.

3. Companies need to leverage the best possible support for effective fraud prevention solutions

TeleSign’s technology uses complete in-depth data analysis to identify and prevent possible breaches, helping businesses set up and prepare fraud prevention solutions to create a frictionless, E2E customer journey. TeleSign’s solutions are trusted by some of the world’s largest platforms, including Citrix, Skype, Electronic Arts (EA), ByteDance and Salesforce.

To learn more about how companies can protect their holiday shoppers from fraud and identity theft, visit TeleSign.com.

Lead Generation, Franchise Sales and Reality

Posted on by Franchise Strategist

This approach is terrible not only because you have empty spots in your pipeline but also because an ebb and flow in the advertising plan sometimes may cause the “brand” to disappear for awhile and send the franchise buyers a less than confidence inspired massage. For a start-up or emerging brand, this is the equivalent of a jet airliner “pumping the brakes” to save fuel while attempting to “take off.” It usually leaves a mess at the end of the runway.

Lead Generation, Franchise Sales and Reality
By Gary Occhiogrosso – Managing Partner – Franchise Growth Solutions, LLC.
Photo by Kees Streefkerk on Unsplash

The best way to get results in franchise lead generation is to remember that NOTHING works a lot, but everything works a little. What does that mean? It means for a start-up or an emerging brand (under 50 units), you need to try various lead sources to test which “streams” bring in the type of leads at the rate necessary to make your sales plan.

Look at all the factors in the game
Cost Per Lead and Cost Per Acquisition are only two KPI’s to look at when monitoring your program and its results. It is not as straightforward or revealing to limit your decision based on “how much did I spend and how many units did I sell.” The Reality is; it takes numerous elements to gain success. Such as time to build your pipeline (5-8 months), consistent follow up by a competent, highly trained, and relentless sales staff. As well as accepting the reality of the selling cycle
(about 120 to 180 days) and a realistic lead generation budget to pursue a professional and sustainable franchising recruiting effort. Your brand will NOT “sell itself.”

The Reality is that consistency in lead flow is also essential. I have seen many start-ups and emerging brands take a hiccup approach to franchise lead generation. This approach is terrible not only because you have empty spots in your pipeline but also because an ebb and flow in the advertising plan sometimes may cause the “brand” to disappear for a while and send the franchise buyers a less than confidence inspired massage. For a start-up or emerging brand, this is the equivalent of a jet airliner “pumping the brakes” to save fuel while attempting to “take off.” It usually leaves a mess at the end of the runway.

Royalties will make you the King or Queen
For me, the most important thing for a start-up or emerging brand to remember is the “value” of your franchisee over the lifetime of the franchise agreement. The Reality is; if you calculate the royalty return over that period, you will see the real reward of consistent lead generation and awarding a franchise. Calculate your Royalties on your AUV’s by the number of years you expect your franchisee to be in business, and it’s obvious. Do the math. Keep that in mind, and you won’t think the “Cost Per Acquisition” is too high unless you are attempting to “fund” your new franchise company from the upfront franchise fee collected. Funding your growth solely with the Initial Franchise Fees is never a good idea.

You should be in the franchising business for the royalties and the eventual exit, not the franchise fee. News Flash, focusing on the collection of Franchise Fees doesn’t work and often puts not only the franchisor in jeopardy of failure but also the franchisee. When you focus on the franchisee’s success, you will build a better organization, better equipped to support your franchisee. Successful franchisees paying long term, residual income from ROYALTIES is the way to BUILD YOUR BUSINESS.

A bigger “kiss” at the end
The Reality is; the sale of franchise companies (especially to Private Equity firms) have proven time and time again, that multiples paid on Royalty driven EBITDA at exit are more significant than the multiple typically offered on EBITDA derived from company operations. That’s because it’s scalable at a faster pace and with a lower cost.

Building a franchise business as a Franchisor requires a great concept, a comprehensive system, manuals and training, proven results, capital, planning and patience. If you remove any one of these components the journey may be an endless winding road with no clear direction.Talk to us to get started.

For more information, visit our YouTube channel and watch the videos titled:
“Using Digital to Sell More Franchises.”
“Private Equity and Franchising.”
https://www.youtube.com/channel/UCy6HZTtVYfsO9o8fBFMnZww

Contact us at [email protected]
Explore our entire website: www.franchisegrowthsolutions.com