Improving franchise sales strategies and tactics by iFranchise Group

Improving Franchise Sales :: Strategies and Tactics

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Today’s Presentation ü David Omholt, CFE– Senior Advisor, the iFranchise Group – – – – – – – – –

Certified Franchise Executive (CFE) since 2005 Founder, The Entrepreneur Authority (eAuth.com) Broker Network 25+ years of Consulting experience Former executive with Accenture Have been both a licensor and licensee Fast Track MBA in Franchise Management Franchise Management Certificate Graduate, Purdue University, Krannert School of Management domholt@ifranchisegroup.com :: 708.249.1047

ü Lot of material to cover, so unless a question is slide-specific, perhaps best to wait till the end for questions ü Happy to email presentation so you can minimize note-taking ü A little about you?

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Psychology of the Franchise Sale

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The Buyer Change Equation

C>= Pp + Vf + S Where, C= Likelihood of change Pp= Pain in the present Vf= Vision of the future S= Stability 4 The iFranchise Group

The Buyer Emotion Curve

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The “Award” of a Franchise ü First lesson of franchise sales: Nobody ever “sold” a franchise ü Psychology of “the award” – Two way street, you must qualify – If you do qualify, you are special – You must follow our rules

ü This psychology must permeate your thinking and your technique -- we are not salesmen, we are facilitating an award ü “Buy” vs. “Invest” in a franchise ü “Franchise Support Center” vs. Headquarters or “Director of Franchise Development” vs. “Franchise Salesman” 6

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Personality ü We buy from people we like ü We like people who are interested in us ü Our favorite topic: Ourselves ü Be yourself: – This is a long term relationship – If you don’t have a fit, better to find out now

ü Enjoy yourself in the process or find someone else to do it – We like people who are having fun – If you are not enjoying the process, it comes across, and will send the wrong message 7

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Important Points to Remember • If YOU are not willing to change, you will not get others to change • personal buy cycle = your professional sell cycle • Must be good at recognizing warning signs early –

e.g. T.I.O. = “No”

• Honesty usually will be returned with honesty • Presentation Effectiveness – – –

7% words 38% tonality/voice 55% body language

• Worst compliment ever is ‘You just gave a great presentation!” The iFranchise Group

Introduction to the Sales PROCESS

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Strategic Process Design Questions

1. 2. 3. 4. 5. 6. 7. 8. 9.

How many modules (How Much Support)? What order will we present the modules? Who will conduct each module? How will we conduct each module? What assignments should we assign? When should we send the FDD? When should we conduct various checks? When should we administer Profiling? What should be our Dday strategy?

– –

1:1 or 1:M Expense reimbursement policy

10.Which, if any, 3rd-parties (vendors/’Zees)? –

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Recruitment Process Example

Radio / Brokers

Print / Trade Shows

Social Media / PPC

G e n

D e t

Q u a l

O P S

F D D

M K T G

C R E D I T

I T / B O

P R O F I L I N G

P U R C H

R E F E R N C E S

I N S U R

Join the Team Day

Leads

45 75

Characterized by: 1. 2.

Modularization of Content Alternating Forms of Communication (verbal/written))

3. Upfront Agreement on Decision Date 4. Include Vendors and Franchisees 12 5. Candidate ‘assignments’ at each step

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•Moreover, it launches CARSTAR from a power position versus the current cold call/drive by/ •unwelcome drop-in with the current process. Currently, you allow the candidate to be judge and jury!

Vx Content Modules: • Join the Team Content outline: • Section 1: Video from _________ Glad you are continuing the process! • Section 2: Topic 1 Point 1 Point 2 • Section 3: Topic 2 Point 1 Point 2 • Section 4: Topic 3 Point 1 Point 2 • Section 5: Topic 4 Point 1 Point 2 • Section 6: Call to Action Item 1 Item 2

Content Outlines For each module in the process, you need to develop an outline of talking points and messages to land. You will have 7 of these in total…starting with the Welcome and Overview and Our Future modules through to the Join the Team module.

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Modules

Franchisor Objective

Candidate Objective

General Content

Multimedia Clips

Prospect ACTION

•How You Get There…NEW Award Process

Brochure, PR, Ads, Events, Portal

Lead Gen / Drive traffic to franchisingURL.com

Is this legit; can I make enough money; do I like the players?

Value proposition articulation

Watch Client/Franchisee Testomonials

Visit web site

Welcome & Overview (W1) Our Future

(W2) Our Roadmap (W3) Launching Your Business (W4) Growing Your Business (W5) Maximizing Your Business (W6) Join the Team

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Process Roadmap Example Mutual Discovery Process •Start Date:

Target Decision Date:

•Step 1: Welcome and Concept Overview q Explore Website / eBrochure q Watch CEO video, part I

•Step 5: Growing Your Business (Day XX-XX) q Complete Market Development Plan q Watch CP of Real Estate video/webinar

•Step 2: Our Future (Day XX-XX) q Complete Confidential Questionnaire q Watch CEO video, part II

•Step 6: Maximizing Your Business (Day xx-xx)) q Submit Business Plan q Watch IT/Back Office/HR video/webinar

•Step 3: Our Roadmap (Day XX-XX) q Start Funding Process / Background Release Form q Watch VP of Mktng video/webinar

•Step 7: Attend Join the Team Day (Day xx-xx) q Headquarters Visit / Tour Location q Sign Franchise Agreement

•Step 4: Launching Your Business (Day XX-XX) q Complete full Application / Review FDD q Watch GO/Legal/Training video/webinar

•Step 8: Start Your Business! q Submit Site Development Plan q Work with Construction q Soft opening

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Welcome & Overview Content Outline: **ILLUSTRATIVE** -3-5 Minute (eBrochure or Video)

Content outline: • • • • • • -

Section 1: Introduction Video from CEO (via YouTube or Vimeo) Where the company is headed, Company Vision / WHY NOW is the best time ever to join or expand with us Section 2: Recap of opportunity (high-level summary) Point 1 Point 2 Section 3: What do we have such a proud history? Point 1 Point 2 Section 4: Why do we have reason to be so optimistic? Point 1 Point 2 Section 5: What to expect step-by-step; We’re in it together; Tell them what Process is, why it was designed as such and why it’s important Step 1: high-level summary (you are here!) Step 2: high-level summary (Our Future) Step 3: high-level summary (Our Roadmap) Step 4: high-level summary (Launch) Step 5: high-level summary (Grow) Step 6: high-level summary (Maximize) Step 7: high-level summary (Join the Team) Section 6: Call to Action Submit Mini App Franchise Specialist will call you to set up an appointment

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Detailed Discovery Day Process

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<<insert your logo>> Hi David,

Sample (W1)

Thank you for your interest in ____. You have now made an important accomplishment toward entrepreneurship. You are among the 14% that have made that decision – even though nearly 3x that many dream about it. Well done. Thank you for wanting to learn more about our unique Franchise opportunity. I started this business XX years ago in the basement of my home. My business is now nationwide (world). XX years ago I started franchising my concept and now have over XX franchised locations in the US and Canada. I’m excited to take you through our Discovery Process to see if we are a good match for each other. My Franchise Coordinator, ___________________________________, will reach out to schedule our call (or, see App button below). Finally, below are some links which will start your discovery journey. Franchisee Testimonials My Welcome and Overview Video (link to automated scheduling App of you would rather that) I look forward to getting to learning more about you! Joe Recruiter <<insert your picture>> 999-999-9999 Direct Your Street Address Your Town, XX 99999 www.FranchiseURL.com <<insert trade association logo>> and/or <<insert any award or recognition>>

Connect with us:

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A Methodology to Keep In Mind

Rapport Building Identify the Pain Buyer Values Binding Agreement Outlay Next Steps 24

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