Is a franchise a good fit for you?

I recently found some clarity in answering two questions I get from friends or acquaintances that know of my background in franchising but are outside of the industry themselves.

I thought my perspective could be helpful to others in the franchise biz, so here is my two cents, on these two common questions:

Question 1: “Is buying a franchise a good idea?”

Super simple, but it’s the same thing I’d ask if I were in their shoes.  Since it IS general, I make the assumption that they want me to compare it to starting a non-franchise / independent business in a similar industry.

My answer:  For most people – yes.  This is not my franchise-biased opinion, it is a fact that overall, it’s much less risky to join an established brand and pay royalties. There are exceptions, of course, and sometimes starting from scratch can have a bigger upside.

Also, there are inferior franchise brands, so choose wisely. But, net-net, a franchise is a particularly good idea comparatively. Much like Warren Buffett’s advice that most people would do better with index funds vs. picking individual stocks, it is all about managing risk.

I will say, seeing people take less risk and experience more frequent success buying franchises with their hard-earned money is the main reason I chose to start my company and help this business model expand!

Question 2:  Should I use a franchise broker/consultant?

Answer: It is a rather good idea but is ESPECIALLY good if they are open to considering emerging / early-stage franchise brands. If only considering large well-known brands, it is less necessary because there is more public data available and more opportunities to validate relevant performance with existing franchisees in their system.  Of course, there is also the issue of saturation in those cases. 

The big advantage of having a franchise consultant is that they have a real motivation and proven process to match an individual with a brand that fits them in a multitude of ways.  Sure, they are paid by the brand when a successful deal is signed, but this generally does not skew their motivation – because most broker/consultant systems represent a few hundred brands.  The compensation to them is similar regardless of where they place the candidate, so overall it’s a pretty good setup and really does benefit the franchise buyer at no cost to them.

It’s also a great shortcut to spending what could be hundreds of hours on research, and still not getting the wisdom of an experienced franchise professional.  Despite being in franchising for nearly 15 years, I didn’t have much experience working with them until we began providing several with leads last year, which has grown to be a major part of our business. 

From my experience with the franchise brokers/consultants we do business with, they have been deeply knowledgeable, ethical, and enter transactions that are mutually beneficial for all parties.

All and all – I fully endorse this idea!

Feel free to reach out directly on LinkedIn or at alex@prospectdirect.com with any comments or questions.

Great sales and marketing require a balance of art and science, which is why experimentation is encouraged – especially when it comes to email marketing.

So where should you focus your creative efforts? Where should you apply rules and processes? Here are some tips from experience and best industry practices to make it a bit less daunting.

1. Subject Lines – keep them short … and test.

Even if you have the best body content in your email, to be successful, your email must be opened. Your subject line needs to be strategically crafted (about three to nine words long), with planned A/B testing and possible follow-up messaging to those that open but don’t reply. While you can’t put your entire pitch in the subject line, you should make it personal … and it should highlight what you can do for them.

2. Email Body – brief, direct, personalized CTA.

If you want to stand out, customize and personalize. You’ve put the time and effort into finding the perfect leads – now focus on a message that will intrigue them and address their needs. At this early introductory stage, be brief … direct … and don’t be selling. Your goal is to pique their interest and, if possible, foster familiarity through some common ground.  Individualize each email so that the recipient views it as a natural message that they would get from a helpful colleague or peer in the industry. Go further than just changing the name on a stock email. Dig deep using the prospect data fields that are available to personalize. Finish with a low-pressure CTA to schedule a call or demo and be sure to include your full signature.

3. Imitation is the sincerest form of flattery.

Thanks to the omnipresence of information online, replicating an existing successful franchise model under a different brand name is simple – and getting increasingly hard to protect against. Before, a franchisor could preserve its brand identity because it was harder for others to learn about its operations, locations, marketing tactics, and business strategy. Today, entrepreneurs halfway around the world have everything at their virtual fingertips to research and create a similar enterprise at home.

4. No HTML

This may be a controversial one for some marketing pros and agencies, but from our experience, images, graphics, etc. do not increase open or reply rates in most B2B scenarios. There are, of course, examples of these styled campaigns that perform well for certain brands and target audiences. In general, however, natural-style emails receive more opens and replies than any other style when executed well.

5. Copy Proofing

You’ve already invested time in framing your approach and gathering a target audience, so don’t skip this critical editing step. It should be an automated part of your content creation process, using experienced copy professionals to correct spelling, grammatical, and word choice errors.

These simple mistakes will damage authority and credibility with your prospects, making it more likely for them to delete your message – especially since you haven’t established a relationship with them yet.

6. Timely Replies

You’ve done the work, now comes the reward: warm prospects. Don’t wait for them to shop, but at the same time, don’t be creepy. Same-day replies or call follow-ups are expected. Email auto replies acknowledging inquiry receipts are acceptable but should be looked at on a case-by-case basis.

Most importantly, have a plan in place and a proven process for handling incoming interest. Seamless follow-up, education, and on-boarding will ensure that you optimize the ROI on your investment.

7. Tracking and CRM

Soon, new leads will blend with existing ones … and you’ll want to make sure nobody gets left in limbo. For this, there are easy-to-use reports that will tie campaign results for opens, replies, and other metrics and are packaged in a transferrable file. These friendly formats are flexible to upload to all major CRM systems and integrate into pipeline tracking, funnel progression, and closing metrics to tie campaigns to results.

The bottom line?  Keep it professional with a balance of useful personalization. Stick to these time-honored tips and you’ll be ahead of the game when it comes to maximizing your sales and marketing arsenal.