“Showcasing brand awareness and concept longevity will attract a new generation of franchisees,” says John Covilli
For most mature franchises resale is a common feature of the system. In fact, it’s part of the circle of life in this business – both literally and figuratively.
Very few franchise concepts have truly earned their stripes in terms of being consistently relevant and recession-proof. However, for concepts that have achieved such a milestone, it’s critical to leverage that established brand awareness and longevity as a driving force for franchise development efforts.
Here are a few tips for maximizing established brand awareness and longevity to drive fresh franchise growth initiatives and resale efforts in a new era of business:
Launch a proactive resale initiative
With franchise systems full of the baby-boomer generation, it’s not only important to be cognizant of retirement and resale timelines, but get ahead of it.
As a franchisor, proactive resale initiatives provide a chance to reinvigorate the system by attracting a new profile of franchisee to carry on the legacy and pursue aggressive growth goals in their territories across the entire franchise system.
A strategic rather than passive approach to resale will ultimately benefit not only the growth goals of the franchisor, but the financial objectives of both buying and selling franchisees as well.
Market existing assets
When it comes to established brand awareness and longevity, use it as a unique selling point to prospective investors. In other words – if you’ve got it, flaunt it.
In addition to showcasing the traditional benefits of the franchise business model to prospective investors, be sure to market the added benefits that come along with the resale opportunity, such as an existing client base, brand presence in the market and in many cases, existing staff and equipment.
With an established business in place, new franchisees are better able to focus on expansion. New owners can then push the edges of possibility in a territory and grow the profile and awareness of the franchisor itself – helping to drive franchise development for the long term.
Include succession into the business plan
By paying close attention to resales on the horizon in the system, franchisors can be involved early on to make sure a franchisee is able to take advantage of the franchisor’s support and involvement in the launching process.
By working closely with franchisees early on to map out potential resales ahead of time, franchisors can not only help boost the ROI of the sale, but also maintain more control over the type of investor who ultimately takes on the location and joins the system.
Exit strategy support is another added incentive to prospective franchisees that may strengthen the overall value proposition of the franchise investment.
In conclusion, showcasing brand awareness and concept longevity will certainly help attract a new generation of franchisees. By taking the process one step further to solidify a strategic sales approach for resale territories, franchisors can grow their systems faster and more effectively within new and existing markets.
ABOUT THE AUTHOR
In his current role as senior vice president of franchising, John Covilli CFE oversees the franchise program for North and Latin America for Dale Carnegie Training, including all aspects of franchise sales and re-sales. His insights and experience allows him to provide the Dale Carnegie Training franchise system the resources and tools to drive growth. https://dalecarnegiefranchise.com