Franchisors should never sell franchises!
Iain Martin - Director, The International Franchising Centre
Now I know what you’re thinking: he’s playing with words here – all franchisors sell franchises – they might talk about “awarding them” but that’s just semantics, isn’t it? - I don’t think so, because it reflects a mindset.
Have you got a real vision for what your network would look like, fully developed; the quality of relationship you would enjoy with your franchisees; the performance levels of the franchisees and the revenues which would flow both to them and to you? If you have, I doubt that your mental picture includes franchisees who are struggling, who are awkward to deal with, who are negative and critical. But the truth is that there are going to be lower performers in every network the only issue is going to be how many, and how low is the performance of the bottom quartile? The answer to that question depends largely on you and the recruitment policy you operate in your franchise.
Whilst franchisee recruitment isn’t a science (in the sense that there’s a formula which works every time), I think it can be described as an art. But the art is principle-based. I would suggest that the principles underlying successful franchisee recruitment include the following:
- Total transparency a full exchange of relevant information between candidate and franchisor
- A mindset that is looking for “best fit” “has the candidate really got what it takes to be successful with us?”
- A structured recruitment process which is designed to ensure that the information exchange takes place and the candidate “fit” can be accurately assessed
- An underlying attitude which communicates the following message to the candidate: “We’re determined to be the best in our market sector and we know that if we’re to achieve that, our franchisees must share our vision, passion and have the attributes which will enable them to be the best too; are you (Mr Prospective Franchisee) good enough to be part of what we’re building?”
I promise you, that if you do communicate in this way with your candidates, they’ll be the ones trying to show you why they’re good enough to be part of your network!
The issue of whether you’re selling or awarding a franchise has simply disappeared…
Iain Martin is a Director of the International Franchising Centre and specialises in helping international franchisors secure UK partners, and UK franchisors to develop successful franchise networks, through several brokerage businesses.
10 ways to generate publicity to improve your Franchise recruitment
Sally Anne Butters – Head of Media, Coconut Creatives LLP
Media coverage can be a blessing for franchisors if it is managed well; as your profile goes up, so will your recruitment figures. Whilst an integrated marketing campaign will always yield the best results, not all of its activities have to incur a direct cost. Here are 10 things to consider within your franchise marketing plan that do not have to break the bank!
1. Focus your PR efforts.
Choose carefully exactly what message you want to convey, your target audience and your target media. Whether it’s the launch of a new franchise opportunity, a significant anniversary or a competition win, make sure it is relevant to the readership of your targeted media — be it print, broadcast or online.
2. Use social media for free PR.
You can set up a Facebook page or a Twitter account at no cost. Social media is an excellent way to build relationships with your prospects and create word–of–mouth publicity. This can get addictive so make sure that you only devote an appropriate amount of time to tweeting as if your target audience doesn’t use social media that much then you could spend your time more effectively elsewhere!
3. Viral marketing.
Whether it’s a YouTube video with thousands of views, or a photo that is tweeted and retweeted, if your promotional material goes ‘viral’ it can give your public profile a huge boost. There is no magic formula to viral marketing — but something quirky, interesting and funny is more likely to capture people’s imaginations.
4. Write a great press release.
Press releases have more uses than just being sent to journalists, they can also go on your website, be linked to your social media profiles and added to any recruitment website listings you may have. Ensure you have a catchy headline and a strong, summarising opening paragraph and an image to capture the imagination before getting into the details.
5. Get back to basics.
Don’t waste your time sending out endless empty press releases. Journalists want to write about something that is newsworthy, particularly if it will appeal to their readership. If it’s linked with famous people or events, controversial, amusing, or relevant to a current national news item then you are much more likely to get the coverage you want.
6. Advertising promotions.
Many advertisers also offer editorial space with the space you have paid for. If you take up this free editorial space, make sure you fill it with something appealing to the readers of that publication and give them something to act on – visiting you at an exhibition or joining one of your discovery days.
7. Go for gold.
Winning an award is a fantastic way to get publicity — not only does it recognise your talent and increase your prestige, award ceremonies are a good place to network and are usually covered by the press. Some awards are free to enter so look out for ones that are well respected in your industry as well as the franchise sector.
8. Get philanthropic.
Giving your time for free can be a scary thought when you are a busy franchisor but it can pay dividends! Getting your team involved in a charity event or offering to speak at a networking event can all have the secondary benefit of raising the profile of your franchise opportunity.
9. Deal with bad publicity promptly.
Swift, effective action can turn a negative comment into piece of good publicity. If a customer complains, contact them directly with a full apology and suggested solution. If you see negative and anonymous comments online, respond honestly in the same forum, explaining the situation from your perspective. Do not ignore negative feedback — it may be the first thing a prospective customer sees if they decide to search for you online.
10. Keep it in perspective.
Publicity is a great way to increase footfall but don’t neglect other aspects of your business in a bid to boost your profile. Don’t forget that a multi-channel marketing approach is always the most successful route to recruit franchisees.
Ask an expert!
If you don’t have time to manage your own PR, then it is worth outsourcing it. While some companies will work for a reasonable retainer, always ensure you know what you are paying for. If you are not sure if you’ve been given a good deal and want some advice, email me sally@coconutcreatives.co.uk and I’ll give you my opinion. We offer a limited number of PR Pay by Results services to franchisors each month, so if you want to do the writing part yourself but want to leave the dealing with journalists, editors and freelancers to someone else, get in touch to subscribe.
Sally Anne Butters MCIPR, is Head of Media at Coconut Creatives.
How to recruit a good Franchisee
Cathryn Hayes - HSBC Head of Franchising
Thanks to the British Franchise Association, banks, exhibitions, trade magazines and the internet, potential franchisees are better informed than ever before.
Growing your network quickly while only selecting new franchisees with the skills and qualities to suit your business is a difficult balance to strike.
The most successful franchisees will:
- demonstrate they fully understand that this is their business, which they are going to make successful
- have fully researched the franchise and know that it will suit their skills and lifestyle
- take ownership of their business plan
- above all, be passionate.
It’s said that you only get one chance to make a first impression, and that is certainly true in the franchisee recruitment market. Potential franchisees generally take about five seconds to decide if an advert interests them, so it’s critical that your adverts attract attention, promoting all your unique selling points clearly and simply.
A potential franchisee will want to know straight away what the business is, what it will cost, what they can expect to make from it and what support is available. You should also explain whether it is a new concept or a long-established business.
Each franchisee will be an ambassador for your business, and you are the best judge of whether they have the right qualities to be successful. Have a clear idea about the essential skills a franchisee needs and plan your interview and vetting process to test these thoroughly.
One of the common mistakes a new franchisor makes is to accept new franchisees that do not really have the skills required. Equally, be careful about letting a third party recruit franchisees on your behalf on a commission basis.
Before considering an application from a potential franchisee, the banks will also be looking for evidence that they have completed their “due diligence”.
Posting from the monthly HSBC Connections newsletter. For more information or to get on the mailing list for the newsletter please email franchiseunit@hsbc.com
