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Marketing the Opportunity
In addition to your sales prospectus, you will need to create a franchise information pack. What’s the difference? The sales prospectus is an in-depth document. It covers all aspects of your company’s history, profits, and day-to-day operations. This is not a light read: it’s something you’ll distribute to people seriously considering investing in your franchise.
The franchise information pack, on the other hand, is more of a pamphlet or an advertisement. It’s designed to catch the investor’s attention, draw them in, and make them seriously consider your business as a unique and exciting franchise opportunity.
The Successful Franchise Information Package
What makes a successful franchise information package? There are a number of things!
· It’s short, sweet, and to the point. This is not the place for a lot of complicated facts and figures. Point form works well. So does easily accessible language. Don’t get into legalities and technicalities here; just explain why your company is such a great franchise opportunity!
· It’s easy to read. That means you’ve had it professionally proofread and possibly designed. If you put it together yourself, use clear, large fonts (nothing fancy). Make sure your spelling and grammar are impeccable. You’re making a first impression and it tends to last; an unprofessional franchise information package makes you seem a business risk.
· It’s attractive. Graphics help: charts, pictures, even clip art: anything that will draw the eye. Colors help, too. Emphasise what you need to. Direct the reader’s eye to essential information.
· It emphasises profit. Remember, like you, franchisees are businesspeople. They aren’t looking to invest in your franchise out of altruism or boredom; they’re looking for the bottom line: how much money will I make? Don’t make things up, but clearly demonstrate how your franchise will be a profitable venture.
· It provides essential information. Essential information includes things like your product information, market trends, and your company’s financial success. The last one is key. If you can demonstrate consistent success, the franchisee will be more likely to invest. You need to present yourself as a stable, secure, and successful investment.
The Importance of Pilot Operations
Your first few franchises are absolutely essential. They will be your test projects. After all your work establishing your business plan, setting up your franchise agreement, scouting territory, doing market research, establishing fees, and raising capital, you finally get to see your franchise in action!
Almost immediately, you’ll probably find flaws in your structure. That’s okay. Think of these first few pilot franchises as test flights, dress rehearsals, and trial runs. Work with your franchisees to find flaws in the system and refine them before you take your franchise any further. Offer the first few franchisees a discount on fees in exchange for their assistance in fine-tuning such items as training, structures, fee payments, etc.
It can be tempting to rush your pilot operations in favor of expanding (and profiting) more quickly, but it will only cost you in the long run.
Combining Market Research with Pilot Operations
The great thing about the first few franchises is that they can serve as their own market research. Again, in exchange for a reduced franchise fee, franchisees will be more than happy to help you collect market data and closely observe their operations. If you choose to do this, make sure it’s clear to the franchisees that you are inspecting the demographics and conducting market research, not lurking around watching them.
Obviously, the best market research comes from an actual market situation. Take advantage of your pilot operations. Position them strategically, analyze the data, conduct surveys, and encourage your franchisees to help you out (again, most will be quite happy to do this in exchange for a discounted franchise fee).
How
To Franchise Your Business Info Guide
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