Selling Franchises After Your FDD is Issued
Congratulations, you’re now a new franchisor! Your Franchise Disclosure Document (FDD) was just issued. You have people interested in buying your brand and you want to start closing deals. But, what happens next? How do you start selling?
Do you just send them your FDD?
Well… Yes. But there is more. Let’s break it down:
FDDs Scare People
Yes, that’s right. The first thing you need to remember is that FDDs are big, scary, legal documents. The FDD is a mandatory legal disclosure document that includes so much information and will usually overwhelm your franchisee candidates. Of course, you have to send prospective franchisees your FDD at some point, but if it’s the focal point of your sales process, then you’re making a mistake. There needs to be a process that starts with a franchise sales website, a digital brochure guide, and videos.
Display Your Franchise Sales Process on Your Website
Starting with your franchise sales website or webpage on your consumer website, this should include information about why your offering is compelling, information about your team, and a call to action to learn more or download your brochure or guide.
Have engaging videos about your brand and you telling your story as a founder. This should all be bundled together as you communicate with interested franchisee candidates. Get your franchise sales process in order where you clearly communicate and demonstrate a framework of your opportunity including:
- The story behind your brand
- The advantages of your franchise
- Unit level economics
- A compelling Why You Why Now showing the unique differentiators of your brand.
5 Steps for Selling Franchises
Your franchise sales website should be transparent and reflect your process so candidates know what to expect. Educate your candidates about the steps and process for ownership and give them a roadmap of what they should expect when they contact you.
- Candidate fills out form to Download Ownership Guide
Your main call-to-action and contact form on your franchise opportunity website or webpage should be for prospective franchisees to download your digital opportunity guide in exchange for their information. Learn More or Download Our Guide works well. A simple form asking for their name, email address, and phone number is sufficient.
- Talk with the Team and Review FDD
Speak with one another and match your expectations. Set up a presentation about your brand and the opportunity. This is also your chance to see if they would be a good fit for your brand. During this call, you can talk to them about the FDD and what they should expect to see in it. You may have several follow up calls with them to discuss territories and other items included in the FDD.
- Due Diligence and Franchisee Validation
If you already have franchisees, you can encourage candidates to speak with existing franchisees to learn about their experiences. This is why over-delivering to your franchisees is especially important, because they can be your best (or worst) salespeople.
- Discovery Day and Qualify
As you get deeper into the process, many franchisors have a more formal application process to help them qualify their franchisees and hold a discovery day at their corporate office. Recently, many brands are hosting Virtual Discovery Days.
- Sign your Agreement and Open New location
Award the franchise to the new buyer and start your on-boarding process!
Watch this video about how to use your FDD in the sales process.
- Although the FDD is a mandated legal document, your prospects should know that receiving the FDD does not legally bind them in any way (only signing a franchise agreement and paying a franchise fee does).
- Before you can offer or sell to that franchisee, make sure you are complying with the laws and are registered in those particular states.
- Don’t give out legal advice! Recommend that they review everything with a franchise lawyer. Get them acclimated to the FDD and the role it serves but never give legal advice.
Check out this Infographic of a Sample Franchise Sales Website Wireframe:
By admin August 23, 2021
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