This week, a great deal of time will be spent on this site focusing on Franchise Development via Social Media. I’ll address the basics and identify how to integrate Web 2.0 technology and tools with traditional franchise marketing and development methods. The ultimate goal and objective to be achieved by these efforts will be to provide franchisors an effective way to generate franchise sales in today’s economic environment and beyond.
Now, before proceeding on our exciting journey, let’s not lose site of basic sales skills and the fact that franchise candidates must be treated professionally and with a sense of urgency. To that end, as a primer to this week’s journey of Franchise Development via Social Media, I am reposting below, the recent article posted on this site that referred to Franchise Update’s mystery shopping of franchise companies. Let’s keep the results focused in our minds and understand, regardless of what methods generate interest in a franchise concept, it still takes personal attention to detail, extreme professionalism, and diligent follow-up to successfully move any interested party from franchise candidate to franchisee.
Your participation is greatly encouraged and will certainly be appreciated. Please submit all comments and questions in the appropriate section at any time during the journey and I’ll respond as quickly as possible but definitely before the next day’s segment. I anticipate four segments in all, with one each evening through Thursday of this week. That will provide more than enough information to ponder over the upcoming Memorial Day weekend.
Without further delay, let the journey begin!
Why Are Franchise Sales Lagging?
originally posted on this site March 24, 2009
Besides the obvious factors of economic uncertainty and tight credit, what other factors are contributing to dismal franchise sales across the industry? Are we contributing to the problem? Are we doing a disservice to franchise candidates, the very people exploring options for a better future?
Recently, Franchise Update’s own mystery shopping (posing as a qualified buyer and phoning in and emailing to 148 franchise companies who represented 57,000 units) revealed such fundamental flaws as:
no callback within 48 hours (58%);
not taking a name (24%);
not taking a phone number (45%) or email address (40%); and
not asking for a time frame for buying/opening a franchise (67%).
The ironic thing is that the industry routinely pays out 20-30-40% commission on franchise sales.
In light of recent poor performance and, high expense in actually awarding a franchise, can the franchise industry continue its franchise development efforts in the same manner as it has for the past ten or so years AND expect to grow?