You are standing at a franchise fork in the road (go with us for a moment). At this fork, you, as a franchise broker have to make a specific decision. The decision is between franchise brands, and for argument’s sake, they both occupy the same space – senior care. Brand A has higher performing AUVs, a seasoned and tenured leadership team, and franchisees swallowing up more territory.
Brand B is slightly behind A in all of those categories.
Brand A’s franchise fee is $50,000 – used to be $30,000, but jumped it up to $50,000 to pay the broker community more money.
Brand B’s is also $50,000 – same story.
Brand A’s broker package is $20,000 of the franchise fee. The leadership has always believed that using the $30,000 to properly onboard the zee is essential to their success.
Brand B’s broker package is $50,000, and, they incentivize you with another $10,000 every time you help them find 5 more franchisees.
Which brand do you push? The one that is a sounder business or the one that gives you more money? It’s a tough decision for sure – however, in the art of this discussion – it’s not about that choice – it’s all about making that choice difficult. That’s your job, Mr./Ms. Franchisor. How can you make your brand more top of mind when a franchise broker is faced with a decision of two brands – one being better for their candidates?
Money.
Percentage of royalty in some cases.
Bonuses for sales milestones.
Bonuses for franchisee performance.
Wines, dines, and other fancy things.
Unfortunately or fortunately, there is some gamesmanship to the sales process with brokers. How are you winning? How are you incentivizing? It’s something you have to think about in structuring your deal modeling.
CREATE YOUR FREE FRANX PROFILE: https://franxlaunch.com/
SUBSCRIBE to our Channel: https://www.youtube.com/channel/UC9JuzJQGcBr5cw26trxM7BA?sub_confirmation=1
JOIN Franchise Growth Mastermind Community: https://www.facebook.com/groups/1464519290241259
