How to expand and grow your franchise network
The map above is missing a country. That’s sad because the latest franchise surveys show that despite its small population, New Zealand (which should have been shown in the bottom right-hand corner) is the most franchised nation per capita in the world.
New Zealand is also the third most-travelled country in the world which means you’ll find New Zealanders – and New Zealand-based franchises – everywhere you go in the world.
As a Kiwi, I love travelling, and I’ve been to more than 30 countries and worked with franchises from many parts of the world to help them expand their businesses.
Franchises such as Domino’s don’t see franchise expansion as part of their franchise business, they see it as the #1 driver of their business. And as you can see above, their focus on franchise growth is such that they use multiple-unit and multiple-brand franchising to drive that growth.
Joint ventures and investment in complementary franchise systems have also taken off. A few years ago, New Zealand franchise Burger Fuel announced that Subway’s Fred DeLuca had invested in their company with the aim of bring the burger franchise into the United States. Although this felt a bit like selling coals to Newcastle or ice to the Eskimos, even Fred's death couldn’t stand in the way of Burger Fuel’s stateside expansion.
In every franchising survey, franchise recruitment consistent ranks at the top of the list of franchisors’ biggest challenges. Not only generating leads from people interested in becoming franchisees, but attracting the right candidates. And the first thing my startup franchise clients ask me when we've set up their franchise is this: Now how do I bring on my first franchisees?
Most of the franchise marketing articles and books advise you to start by asking this question: Who is my “ideal” franchisee? That's a good start but it’s not enough. The real question, the full question is: Who is my “ideal” franchisee and why would they buy a franchise from me?
As you’ll know if you’ve read any of my other stuff, I have a marketing as well as a franchising background. And at the heart of modern marketing is the CVP or Customer Value Proposition. In words of one syllable, why they buy from you. “They” being your Target Market. Franchisee marketing should be the same. If you think of your franchisees as your customers – which in a very real sense they are – you need to know who they are and why they buy before you can start selling franchises to them.
So why do people buy franchises? Fortunately, there’s some research that provides a clear answer to this question for new franchisors looking to sign up their first franchisees and existing franchisors wondering where they’ve gone wrong. But maybe you can figure it out for yourself by evaluating the franchise recruitment website page below.
Where does this go wrong?
Still not sure? Then ask yourself another question: Would you pay $34,000 to push a carpet cleaning machine around for the rest of your life?
So why do franchisees buy franchises? According to research by Australia’s Franchise Advisory Centre, the five key motivations are, in order of importance:
- Lifestyle
- Brand security
- Self-direction
- Income
- Skills development
Why do people buy franchises?
Source: The Franchise Advisory Centre
Is the Chem-Dry franchisee living the dream? No, but these Bin There Dump That (love the name) franchisees are - which is why the Canadian waste disposal provider has been one of the fastest-growing franchises in North America.
I'm not a franchise sales specialist - I won't sell franchises on your behalf - but I can help you with everything else in regard to recruiting more franchisees, including:
- Franchise recruitment strategy
- Recruitment sales team development
- Dedicated franchise marketing website format and content
- Sales resource and process development
- Lead generation campaigns
- Franchisee selection strategy
- Franchisee induction and training
Need to expand your franchise network? Need more of the right franchisees? Take advantage of my free Initial Consultation to talk about your needs and how I can help your franchise to grow.
I'm Robin La Pere, no ordinary franchise consultant. Before I became involved in the franchising industry, I worked in the advertising and marketing fields. That experience gave me an understanding of what motivates people, and I've used that in franchising to recruit franchisees, both in my own businesses and for my clients.
If one of your biggest issues is growing your franchise network – and what franchisor doesn't have that issue –
take advantage
of my free Initial Consultation to discuss some of the ways I can help you.
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A major strength of franchising is that it’s based on tried and true business models. Trouble is, in this fast-changing business environment, what’s tried and true one year may be tired or irrelevant the next.
Not surprisingly, one out of three franchisors is concerned about the viability of their business model.
The 'Business Model Canvas' has emerged as a powerful tool for developing and updating business models. Recognising that franchise businesses differ in several ways from other business types, I have come up with a new version of the Business Model Canvas designed specifically for franchises.
Send me your email and I'll email you my e-book The Business Model Canvas for Franchisors: