21 Mar What Are You Not Selling?
What do the following businesses all have in common?
- Which Wich
- Tutor Doctor
- The Tan Company
- Zippy Shell USA
- Spray La Vie
- Marco’s Pizza
- College Hunks
- Miami Grill
- Raising Cane’s Chicken Fingers
- Cheddar’s Casual Café
- Zoes Kitchen
- French Fry Heaven
- Walls of Books
- Woof Gang Bakery & Grooming
- Philly’s Best
- Pancheros Mexican Grill
- The Greasebusters
- Pie Five Pizza
We’ll give you a hint: McDonalds, Century 21, Subway. You’re correct – they are all franchises. And, they were all advertised in the latest issue of Franchise Times. In our last survey we asked: What percentage of your total commissions were from franchise Resales. The result? 73% did not have any commissions from franchise resales.
It gets worse. When asked what percentage of their sales came from the sale of new franchises, 94 percent did not have any new franchise sales.
Well, the franchises listed above all want one thing – new franchisees. Who better to help them than business brokers? Business brokers deal with people looking to go into business for themselves almost every day.
The 21 businesses listed above are just the tip of the iceberg. Here are some things you can do to add a lot of new listings to your office:
• Subscribe to Franchise Times at www.franchisetimes.com.
• Visit the web sites of the above franchises and any others you discover. This is a good way to learn whether you are interested in learning more about them. Contact the ones you are interested in. See if they want to come to your area, if you can send them prospects.
• For the franchisors that want to work with you, send them an agreement covering your fee, etc. Keep in mind that you can only refer them to those that might be interested in learning more. You can only serve as a referral source. You cannot do any more than that. The franchisor takes over from there. You should also see if they will refer any resale possibilities to you. Also, a new franchisor will most likely not give you any type of listing, but rather an agreement to pay you for referrals and hopefully a statement that they will not use any other business brokerage firm in your general area. Ask the franchisor to run any agreement past their legal counsel – and you should also.
• Keep in mind that new franchisors need all the help they can get to attract new franchisees.
• You might even add a franchise specialist to your office.