Potential franchisees will want to know what they are expected to do and how profitable it can be. So, when you sell the opportunity to use your brand and your business system, with the benefit of the support systems you offer – within the framework of a franchise agreement and initial and continuing fees – you will need a Prospectus.
Because your business is already up and running, you will have operated a pilot scheme separately from your own operation. Therefore, already you will have some facts upon which to base your projections.
Projections are an important way of you providing a prospect with sight of what can be achieved. They should however, hold a disclaimer detailing what they are based on and during conversations it is important to note that actual performance is variable by franchisee depending on their ability to operate effectively in accordance with the model.
Pitching your offer for the Prospectus needs to be done with a good market view in mind, matching the presentation of your offer to the norms of the franchise recruitment market.
Only when you have developed your Prospectus can you commence the recruitment process.
Recruiting franchisees is often said to be the hardest and most expensive responsibility to be undertaken by franchisors
New franchisors have conversion ratios of serious enquiries to appointment of about 10:1 which increases as the network becomes established
Franchisee recruitment media within the franchise sector include:
- The British Franchise Association
- Franchise exhibitions
- Trade Magazines
- Franchise Websites
- Franchise Recruitment Consultants
- Newspaper Advertising
In some circumstances, it may be better to undertake the selection process between franchisor and each prospective franchisee direct. In others, it can be undertaken through a reputable recruitment agent or broker whose approach to recruitment of franchisees on your behalf, is ethical.
Click on the link to view a full list of all bfa accredited Affiliated Advisors.