Franchise Sales

As a business owner in search of franchisees, you already appreciate the importance of candidate selection. You also know the many steps involved, from finding the right prospects to vetting them. Because the process is so detailed, it is highly recommended for business owners to work with franchise brokers, also known as franchise consultants, to help find ideal franchisees.

Throughout our long history in the franchise development industry, Pinnacle Franchise Development has built strong relationships with a network of trusted brokers. We use these relationships to benefit franchise owners in search of buyers.

What Are Franchise Brokers?

Franchise brokers serve a critical role in the relationship between franchisor and franchisee. When it comes to finding qualified buyers, a broker will search for prospects and perform all the due diligence necessary to ensure a good fit with the seller’s enterprise. If they find a match, the broker will reach out and share the opportunity.

Regardless of whether you are looking to sell your franchise or purchase one, it’s the franchise brokers who can deliver sound opportunities for parties on either side of the transaction. In the franchising services industry, broker assistance significantly widens the playing field.

Franchise Broker Benefits

Some businesses forgo brokerage assistance to save money. However, consider the financial risk you take without the broker’s connections. How well do you know who’s in the market? And remember, it takes a lot of time and effort to navigate the sales process on your own. Those are hours that could be spent on your other business objectives.
With this in mind, think about the following benefits you receive when you retain the services of a broker:

• Greater Chance of Success – The quality of your franchisees is a non-negotiable point. Fortunately, brokers typically have a wide network of candidates to choose from, which increases the likelihood of finding the right candidate. It is challenging to identify a suitable buyer on your own, but a brokerage firm will already have a reliable process in place. Based on the 2020 Franchise Sales Index: Lead-To-Deal Ratio statistics – the second largest source of leads that turned into deals was from brokers (after referrals). Leads from brokers have a high conversion rate at 4.25%, which is why working with franchise brokers is so lucrative. Learn more about this data by listening to the franconnect webinar.

• Help with Due Diligence – Once you find a prospective franchisee, the next step is to vet them. Due diligence is vital to the success of the sale, and a broker already has the skill and tools on hand to thoroughly evaluate and verify financial records, credentials, and other revealing information.
• Time – In addition to the complexities of the due diligence process, it can also take a lot of time. With a broker’s assistance, you can rest assured of a reliable process without taking time away from other vital business processes.

For nearly a decade, Pinnacle Franchise Development has been a leading force in the industry. We have established relationships with a variety of broker groups and know the best practices to effectively working with them.

Our team has connections to a variety of brokers whose services we recommend and who will be happy to introduce you to qualified franchise investors in their network. Let Pinnacle continue to support you through every step of the sales process, while you focus on other essential business matters. Please contact us to learn more about our services or to schedule a consultation.

If you’re interested in growing your business through franchising, it’s essential to consider how you’ll position your brand against other franchisors. Moreover, it will help you to stand out by articulating what makes it unique and why it’s a good investment. This is necessary to attract the right franchisee. At Pinnacle Franchise Development, we are equipped and ready to assist franchise brands with their development needs to reach the next level of success. Contact us for more information.

Tips for positioning your brand

As noted, positioning your brand so that it’s ready for the franchise sales process means you’ll attract the right type of franchise leads for your business. Here are some tips to consider:

1 – Start with your product

Review your products or services and ask yourself what differentiates them from your competitors. If it’s significant enough to distinguish your brand, it’s worth exploring. Whether you’re selling products or services, there are always ways to elevate it to make it appeal to franchisees over a competitive investment option.

2 – Assess your business as a potential investor

As a business owner, it’s essential to consider how your brand appeals to potential investors. For example, does your franchise offer lower risk than investing in other areas like the stock market? Can it yield high returns? What lifestyle will it provide to franchisees? Assessing your business through the eyes of a potential investor can help you determine how realistic your franchising goal is and where to focus to help make it more attractive.

3 – Consider your niche

If you’re operating in a category competing with many other franchises, finding a niche market your business can own is vital. Offering something unique helps you to stand out amongst a sea of possibilities. For example, many pizza franchise options are available, but some have carved out niche segments to succeed. This niche can relate to the type of pizza, the dining experience, or the price point. Again, there are plenty of options to consider.

4 – Assess your culture

Your work culture can be essential in attracting the correct type of franchisees for your business. First, assess your values, goals, practices, and shared attitudes, all of which make up your corporate culture. Then, make sure it accurately represents your brand; if it doesn’t, make the necessary changes. Many potential franchisees research a company’s culture and look for alignment with their professional goals when making investment decisions.

5 – Review your customer service

While many brands say they value customer service—what makes it unique for your business? For example, what do you do that goes above and beyond what your customers expect?

Sometimes it can be the simple things that make a difference. For example, consistent messaging with your frontline staff so that all your customers experience the same level of service at any touch point. Alternatively, you might offer flexibility, so your employee’s personality has the opportunity to shine, which allows them to develop strong relationships with your customers. Use of technology is also a major asset when it comes to improved customer experience and convenience for the franchisee. Whatever it is, look for opportunities to optimize your differentiation for customer service–so that it appeals to franchisees.

6 – Compete against well-known brands

If you’re a small business in an industry with large established companies, consider what your size offers and play this to your advantage. For instance, as a smaller operation, you may have excellent relationships with suppliers, or offer personalized support to franchisees. Find your strengths that you know larger competitors can’t compete with and use these to attract the right type of franchisee for your business.

7 – Get professional advice

Implementing multiple strategies to promote your brand to franchisees may be tempting. But it’s better to consider your most vital point of differentiation and enhance or improve this element.

That’s where using an industry expert can help. An experienced franchise sales team understands gaps or opportunities to help create a unique value proposition for franchise sales. They can help you develop your positioning as an investment opportunity and use the right marketing strategy and tools to create high-quality leads for your business.

Need help with your brand’s positioning?

At Pinnacle Franchise Development, our experienced team has helped new and established franchisors perfect their brand positioning, so they’re ready for a streamlined sales process. Our team members are experts at branding, value propositions, franchise marketing, and accurately representing your brand to brokers and prospective franchisees.

Contact franchising experts at Pinnacle to discover our full range of franchising services and find out how they can position your brand effectively to expand your franchise.