skip to content
blog home Grow Your Franchise Franchise Sales and Franchise Development Post COVID-19

During a Franchise Growth Mastermind leadership conversation with Nick Powills, of 1851 Franchise, Joe Matthews of Franchise Performance Group, and Michael Haith, CEO of Teriyaki Madness, we discussed franchise leadership, development and sales – both today and in the future as our nation builds and recovers from the COVID-19 pandemic. The strategies, ideas, and advice that was shared reaches to the highest levels of actionable franchising best practices and, in many ways, a recommended and necessary paradigm shift for the future of franchising.

The following is a summary of the best practices that we discussed:

Franchisors Need to Adapt and Change to a Franchisee Driven Value Proposition

Whether this change is necessitated by the seismic impact of the COVID-19 crisis or is something that was long overdue to happen, everyone agreed that too many franchisors are operating without the right mind-set and franchisee value proposition. Winning franchisors and franchise systems need to shift from a franchise sales mindset to a franchise recruitment mindset and franchisors need to place 100% focus on the value proposition that they offer their franchisees and developing a franchise offering focused on what what a franchise buyer will predictably want.

Some of the concepts for reevaluating the franchise opportunities and franchise development, included:

  • Focusing, when applicable, on asset light and real estate light franchise opportunities;
  • Focusing on franchisee value propositions, the franchisor’s brand story, and the multiple content streams for communicating those stories;
  • Selling franchises with a dedicated focus on replacement income;
  • Recognizing a potential shift where more traditional entrepreneurs may be drawn to franchising vs independent ownership;
  • Consider franchise relationships that may be more in line with operating partnership models like chick-fil-a.

Lead Flow vs Deal Flow

In a market where many franchisors are witnessing a dramatic drop in the volume franchisee leads many are nevertheless reporting potentially better deal flow with higher quality. That is volume may be down but quality and potential future franchise sales may be up. Overall, franchisors should refocus their franchise develop away from volume lead flow to lower volume but higher quality deal flow. To do this Franchisors need to refocus their franchisee value proposition focused on franchisee profitability.

Industry Shift Focused on Attracting Entrepreneurs

As many have witnessed the value of franchising, franchise ownership and franchisee support vs independent ownership during this crisis, now is the time for franchising to expand its reach to America’s future entrepreneurs. In the past, individual minded entrepreneurs did not consider franchising – they started their own businesses. With a redefined focus on franchisee value and profits an opportunity exists for the franchise industry to expand the base of available future franchisees.

There were many more insights that were shared – hope you enjoy the video and conversation.

Join the Franchise Growth Mastermind

If you are a franchisor, franchisee, or franchise professional, join our free Franchise Growth Mastermind Facebook Community.  To learn more about how we can help franchise your business and grow your franchise call us at (800) 976-4904 or by email.

Related Articles:

By Charles Internicola April 1, 2020

Franchising Guides

The Ultimate Guide to Franchising Your Business

New to franchising? Do you want to learn more about franchising your business, where to start, the steps, and how to know if you are doing it right?

Learn More

Is Your Business Franchisable and Should You Franchise?

Franchising may be the next big step for your business and represents an opportunity to grow your brand. So, how do you know if franchising is right for you? How do you know if your business is franchisable and, if it is, whether or not you should franchise your business? To answer these questions you must evaluate whether or not your business is franchisable and, if it is, whether or not your individual goals and your business goals align with franchising and establishing a franchise organization responsible for on-boarding, training, and supporting franchisees.

Learn More

Licensing Vs. Franchising

When considering expanding a business both franchising and licensing are possible options. Each option however comes with different rules and regulations. Prior to moving forward with franchising a business or licensing a business it is important to understand the differences and how each may have an affect on you.

Franchise Lawyer Charles N. Internicola wrote “Licensing versus Franchising” for the very purpose of allowing successful business owners to understand the difference between licensing a business and franchising a business.

Learn More

Guide to Selecting a Franchise Lawyer

If you have questions about franchise lawyers, what they do, how they can help, the cost, and how to select the right franchise lawyer for you, then this guide will help.

Franchise lawyers advise and represent individuals and businesses on legal issues that involve franchising a business, preparing an FDD, filing and renewing FDD registrations, buying a franchise, and litigation involving the franchisor and franchisee relationship. The role of a franchise lawyer varies depending on whether he or she represents the franchisor or the franchisee.

Learn More

Item 19 Financial Performance Representations

Check out our guide where we discuss how to plan and properly disclose Financial Performance Representations in your FDD.

Learn More

Franchise Sales Compliance Guide

Are you a franchisor or a part of a franchise sales team? Do you want to learn more about franchise sale compliance and ensure that your sales practices comply with franchise laws and are consistent with best practices? Then this guide is for you.

In this guide you’ll learn the fundamentals of franchise sales compliance including the franchise laws, regulations, and best practices that your team should have in place for every franchise sale.

Learn More
Close Overlay

Let’s Talk

With services to make your growth strategy simple, cost effective, and with a team excited to help you, let’s talk about how we can help grow your business.

Fill out the following form and we’ll contact you as soon as possible. To reach our team directly, give us a call at (800) 976-4904.