home > Drilling > What is selling a franchise. How to sell a franchise - instructions for pre-sale preparation and finding buyers. Franchise Promotion Examples

What is selling a franchise. How to sell a franchise - instructions for pre-sale preparation and finding buyers. Franchise Promotion Examples

I will not dissemble - franchising is another way to make money for those who already have an existing and successful business. Franchising in this case is an additional source of income. However, this source of income requires additional investment. The point here is not so much in creating a franchise package and, as it is now fashionable to say, in “packaging” a business into a franchise, but in creating a separate sales and support department franchise partners.

Naturally, when launching a franchise business, the owner himself is often both the sales department and the support department rolled into one. However, as the network grows, a large number of existing and potential partners appear, it is necessary to systematize and delegate work. You will not be able to let the development of the franchise network go by itself - you will either have problems attracting partners, or difficulties will arise in further relationships. Until litigation. But future franchisors, as a rule, do not think about these difficulties ... for the time being.

As a rule, the start of franchise sales starts easily - the first franchisees come by themselves, especially if the business is new, offers a unique product or service, or has a well-known name and brand. However, the rapid interest and active growth is gradually decreasing - this is inevitable. This means that sales and growth rates begin to fall.

Usually, at this point, most franchise owners begin to actively search for channels to promote franchises. And of course, the first thing they turn to specialized Internet resources, accumulating a potential audience of possible franchisees.

However, even the placement of information about the franchise and the announcement of a turnkey business in franchise catalogs does not guarantee stable demand. Listing the franchise in the catalog is only the first step, but it is far from the only one. In order for such platforms to be effective, and requests to turn into discoveries, it is necessary to choose multifunctional and technically and professionally advanced aggregators and services that can facilitate the work of the franchise sales department, and sometimes even optimize it.

BIBOSS follows the path of optimizing and automating the process of selling franchises.

We can say that BIBOSS to some extent even replaces the sales department or at least helps reduce the budget for its maintenance, allowing you to keep only professionals who do work that cannot be automated. For example, only a professional franchise manager can negotiate on the merits, determine whether a potential franchise buyer will be a successful and reliable franchise partner in the future.

At the same time, the franchise seller needs not only to bring the client to the conclusion of the transaction - the signing of the contract, but also to determine whether it is worth bringing each individual potential franchisee to this stage. The conclusion of the deal - the signing of the contract - is only the successful completion of the first stage. Then the most interesting begins ... However, today we are not talking about this, so let's get back to sales, or rather, to the processes that precede them.

It will not be about the stage of negotiations with potential franchisees, and not even about the methods of processing incoming applications. We will talk about those processes that occur BEFORE the receipt of an application for the purchase of a franchise. Moreover, if you think that the work of the franchise sales department begins precisely from the moment an application is received, you are deeply mistaken.

You can easily set up your sales team in such a way that it will only process those applications that will lead to discoveries, without wasting time on empty conversations and negotiations with leads who are not interested in your offer.

It is on the system of collecting hot applications, applications-openings that BIBOSS has been working for over 10 years.

What is the BIBOSS system based on?

Before talking about a system that allows you to optimize the process of selling a franchise, I propose to understand what kind of people decide to buy a franchise, and how they approach the choice of a particular franchise.

Working with "beginners": pros, cons, methods

As a rule, novice entrepreneurs who do not have significant business experience (in the worst case, have no experience at all, either in business or in life) are interested in franchises. This shortcoming is filled with a great desire to work for yourself and the dream of starting your own business. Burning eyes and enthusiasm- traits characteristic of potential franchisees, which, nevertheless, must be feared.

Enthusiasm is, of course, a laudable and necessary thing, but it tends to end and dry up at the most inopportune moment - when problems, difficulties, disagreements or discontent arise. Therefore, the franchise sales department faces an almost fantastic task - to determine during negotiations whether the potential partner has enough enthusiasm to survive all the difficulties and possible problems when starting a franchise business.

The lack of experience will affect in the future, after the conclusion of the transaction - "newbies" in business will attack the personal manager with questions that a more experienced entrepreneur would consider stupid. Nevertheless, when buying a franchise, aspiring entrepreneurs count on comprehensive assistance and advice on any issues here and now.

In addition, start-up entrepreneurs are in limbo- they do not know what business to open, and therefore they are studying completely different offers from different business areas. Today they are sure that the franchise of kindergartens is the key to success, tomorrow - that opening a clothing store under a well-known brand is their chance to become an independent businessman, etc.

In order to attract this category of potential partners, first of all, you need to convince them of the prospects of the business that you offer them, and then describe in detail in what areas you can provide them with competent support and advice.

People are lazy by nature, which means that the more help you provide, especially free (included in the cost of the franchise), the more willing the potential franchisee will be to become your partner. However, you should not go too far with promises and free consultations and materials - business is business, and a relaxed entrepreneur who was given a business on a blue border, most likely, will not be able to hold out in the market and work autonomously and independently. Therefore, when placing a franchise in catalogs, the description should indicate what your partner has to do directly, put forward requirements or outline the terms of reference.

We influence visuals, audials and... digitals

It is better to see once than hear a hundred times - this is what most of the inhabitants of this country are guided by. Even if you list your franchise in all sorts of directories and profile sites, if you do not provide a description with photographs, people will not believe you.

Photos are a kind of evidence of the existence of you, your company, your business and everything that you write and talk about.

The same goes for video. In this case, you will already be able to influence the audience, convincing them of the profitability and success of the enterprise - buying a franchise.

Photos, presentations and videos seemingly additional and unimportant details that have nothing to do with business as such. However, they still give their effect. Firstly, the very fact that the company holds a special photo shoot and allocates a budget for shooting a video about its franchise non-verbally, on a subconscious level, inspires trust and respect for the company itself, which naturally translates into a franchise offer.

Secondly, both photos and videos attract attention and are remembered. And even if the person who viewed your photos, presentation or video did not decide to buy a franchise for one reason or another, then it is quite possible that visual images will pop up in memory at the right time - when talking with acquaintances or friends. So information about you and your franchise is distributed free of charge.

However, any entrepreneur, starting or acting, is to some extent digital, because the purpose of business is to make a profit. It is impossible to make a profit without a slender and clear financial model. Business is a strict sequence of actions that leads to profit. However, in order to put this sequence into operation, financial injections are needed.

The question of finance it is also necessary to clarify immediately, without hiding or withholding from a potential partner, the required amount of investments, the amount of the lump-sum contribution and royalties, as well as notify about all kinds of mandatory and additional payments. Thus, you can immediately weed out entrepreneurs who do not have the necessary amount of free cash and do not waste time on empty negotiations with rogues.

The more transparent the financial model of the franchise looks like, the more trust you will inspire in a potential partner. Yes, by submitting a complete and comprehensive business plan for starting your franchise business, you may encounter competitors who take advantage of your business plan and open their own business without your help, on their own. However, then the question arises not about the effectiveness of placing a business plan in free access, but about as a franchise. If an entrepreneur can easily and easily open a business on his own and sees no reason to buy a franchise, most likely the point is not that you have opened the data of your business, but that there are no visible benefits in cooperation with you. And if a potential partner does not see the benefits, then you didn’t talk about them or didn’t do it well enough.

Check for lice

However, do not think that only the outer shell (description, photographs, and even a business plan) will help you get potential partners in the competition with other franchises.

Both experienced entrepreneurs and more advanced “newbies” are interested in franchises, who approach choosing a franchise and starting a business with caution, analyzing and comparing. The main thing for this category of potential customers is to prove their reliability. And since a large, if not the main, part of the negotiations takes place remotely - by phone, to do this in terms of empty words is not the best tactic. Another thing is if your reliability is confirmed by authoritative sources, for example, either specialized or reviews of existing franchisees.

A weighty argument in favor of "believe" for doubters will be the company's transparent policy. If you are not afraid to disclose information about your franchise, participate in ratings and projects aimed at disclosing public information about franchises, disclose the contacts of existing franchisees...

Only when you provide complete and comprehensive information about your franchise in one place, you will be able to receive applications from people who are not only aware, but also serious about buying a franchise, who no longer need to explain and prove anything, who have independently weighed all the pros and cons, studied the inside and out of the financial model ... and now they just want to sign an agreement and open a business for your franchise. The only thing left for franchise managers to do is

do not miss the hot client and bring him to the conclusion of the transaction.

A similar franchise sales system has been developed and implemented at BIBOSS. We have already verified its effectiveness.

You can test the effectiveness and make sure of the effectiveness of BIBOSS by leaving a franchise application, or further increase the sales team and spend your time and money collecting applications on your own, cold and ineffective calls and empty negotiations, instead of working on developing your business. ..

BIBOSS follows the path of optimizing and automating the process of selling franchises.

It is on the system of collecting hot applications, applications-openings that BIBOSS has been working for over 10 years.

What is the BIBOSS system based on?

Working with "beginners": pros, cons, methods

We influence visuals, audials and... digitals

Photos are a kind of evidence of the existence of you, your company, your business and everything that you write and talk about.

The same goes for video. In this case, you will already be able to influence the audience, convincing them of the profitability and success of the enterprise - buying a franchise.

Check for lice

However, do not think that only the outer shell (description, photographs, and even a business plan) will help you get potential partners in the competition with other franchises.

do not miss the hot client and bring him to the conclusion of the transaction.

A similar franchise sales system has been developed and implemented at BIBOSS. We have already verified its effectiveness.

Today, thousands of Russian companies are engaged in the sale of franchises. The market is filled with offers to buy business ideas that promise to turn an inexperienced businessman into a successful businessman. Is it possible to stand out against this background? How to sell the franchise of your business at a higher price and create a network that can generate a stable income?

Selling a franchise is not easy. Bright, attractive packaging and a couple of ads on the Web are not enough here. Even if you are the leader in your market segment. A potential buyer is not interested in the right to use your brand. He, in fact, does not care how ingenious the scheme you created is. Future franchisees need a guarantee of return on investment.

More often, people who are ignorant of entrepreneurial activity dream of opening a franchise business. They make up the majority of the target audience. However, newcomers should be more careful. Their fuse can quickly dry up, and they will only blame you for all their failures. But we will talk about the target audience (target audience) further. How does a franchise start?

Define tasks

Business models are created for different purposes, and these goals are achieved by different methods. For one franchisor, brand promotion comes first. For another, profit in the form of a lump-sum contribution and royalties. With the definition of tasks, the development of a franchise begins.

We analyze the activities of competitors

The main thing is to objectively assess the readiness of the enterprise for franchising. If you are the owner of an obscure fast food restaurant, it will be difficult for you to find a buyer. Subway and several other catering giants settled in this niche for a long time. With ambitious plans to promote a furniture store franchise, you will have to work hard in order to "surpass" the ubiquitous IKEA hypermarket. However, everything is possible with a brilliant USP (Unique Selling Proposition).

We determine the target audience

This stage can be compared with laying the foundation of a future building. It's not easy to sell a franchise without understanding the target audience. The main target audience is people without entrepreneurial experience, as a rule, former employees who dream of financial independence. Unless, of course, we are talking about an inexpensive franchise. Experienced entrepreneurs prefer to buy the rights to use the brand of a well-known company, which can be worth several million.

We create a brand book

Selling a franchise is the transfer of intellectual property for a certain fee. Its development includes the creation of an adapted brand book, which contains unambiguous rules for the use of marketing materials.

The manual should be understandable, visual, include comprehensive information about the technical and general characteristics of graphic elements, colors. The brand book provides information about the mission of the company, describes the options for using the logo, and also lists unacceptable methods of using corporate identity elements.

Registering a trademark

Today you decided to create a franchise network. Tomorrow you will develop a trademark, come up with a USP, launch an advertising campaign. Sell your first franchise the day after tomorrow. No, alas, such a scheme is not feasible. Only the registration of a trademark will take about a year.

We form a financial model

A potential franchisee is primarily interested in a business plan, that is, a document that reflects a detailed calculation of costs and projected profits. An important point is the payback period. It is established based on the real experience of the franchisor. The shape and size of the financial model depends on the characteristics and complexity of the business.

We create a package offer

These are materials that are formed on the basis of the target audience. It is necessary to cover the maximum number of segments of potential franchisees, to make the most personalized and profitable offer (offer). A package for a franchisee can be either opening a turnkey business on its own, or providing training materials, training future employees, assistance in selecting premises, etc. Accordingly, the price of the lump-sum contribution will be formed from the completeness of the offer package.

We draw up documents

In our country, there are no specific laws on the creation of a franchise yet. There is a list of requirements, but it is more of a recommendation. It turns out that any unfortunate entrepreneur can call himself a franchisor. Perhaps that is why it is not easy to sell the rights to use famous brands today. There is a lack of confidence in franchises among beginners and experienced entrepreneurs. Nevertheless, there are several tools that can protect cooperation by law, and therefore, inspire the buyer's confidence.

Only an individual entrepreneur or a legal entity can become a franchisor. The same applies to his potential client. In addition to registering a trademark, few documents are needed to sell a franchise. Namely:

Materials for employees.
franchise standards.

The second point implies the mentioned brand book, as well as the requirements that you plan to impose on future partners. This may be a limitation of the franchisor's activities. For example, a ban on the sale of goods or the provision of services outside a certain region. The criteria for choosing a room and other points can also be indicated here.

How to franchise is up to you. With the help of an experienced lawyer, draw up a contract that clearly spells out all the conditions and requirements. Royalties in the form of a fixed amount or a percentage of the franchisee's revenue, the size of the lump-sum fee, the duration of the agreement - all this is determined by you on the basis of your research.

How to create a franchise? The answer to this question is useful to a successful businessman. If the company is just starting to gain momentum, hold off on selling the franchise. Hardly anyone needs a copy of a bad original.

We create a controlling system for approved standards

As a rule, these are mystery shoppers, whose reports can be used to identify weaknesses in the functioning of the business.

We create a marketing kit (advertising)

There are no clear rules for the creation and use of such a marketing tool. But there is no doubt about its effectiveness. The marketing kit includes the history of the company, a list of employees, clients, a list of achievements, a story about participation in forums, exhibitions, conferences, etc. It, like other materials of the franchise package, is compiled on the basis of the target audience.

Creation of a unique selling proposition

And here the definition of the target audience plays a decisive role. Yes, owners of their own businesses are interested in selling a franchise. But there are few of them. Most of the franchisees are entrepreneurs who do not yet have experience. In cooperation with a successful partner, they are attracted by the opportunity to develop in greenhouse conditions. No risks, experiments, mistakes. By the way, this is misleading. There are always risks.

So how do you write a USP? First of all, you need to understand the fears of potential buyers. And they are primarily afraid of unjustified investments. The USP is based on the concept of a franchise. This offer should demonstrate to the buyer all the advantages of your product over the offers of competitors. USP options:

the lump-sum fee is less than that of competitors;
the ability to pay royalties from the third month after the conclusion of the contract;
Comprehensive training for franchisee personnel.

Franchise Advertising

So, the first task is to create a quality product. Not a bright and beautiful brand, but a money making system. The second task is to create the value of the product in the mind of the consumer.

A common mistake franchisors make is the presentation of goods or services at the beginning of negotiations. It is impossible to sell a business to someone who doubts its profitability. This means that in advertising you need to focus on investments and the timing of their return. The buyer is interested in money back guarantees. And only after that - the characteristics of the goods or the quality of the services of the franchisor.

Selling a franchise online

Start promoting a product on the Web by working on the official website. It must be alive, have high attendance. Preferably with reviews from real customers. The future buyer must see: the business is successful, the services you provide bring a good income.

A marketing kit is a tool that has a wide range of applications. It is also appropriate on thematic resources - special sites where a novice franchisor needs to register first. Don't underestimate social media. So, in Vkontakte, Facebook, Instagram, Twitter there are groups dedicated to franchising. Promote your product in thematic communities.

Franchising requires investment. You will have to connect a whole staff of employees: Internet marketers, copywriters, designers. A good sales copy will attract hundreds of start-up entrepreneurs. Bad - will ruin the reputation in the eyes of potential franchisees.

The duration of registration of TK is mentioned above. How to sell a franchise without a trademark? The seller, who has a successful business model and operates under a brand that consumers associate with his activities, is unlimited in the conclusion of the contract.

In this case, the agreement includes a clause on the use of the know-how of the organization and a unique logo. This is an understandable, legal, transparent method of interaction.

How to sell a franchise without opening a single store

In the field of sales there are specialists of a narrow profile. Some masterfully carry out retail operations. Others are wholesale. The third specializes in franchising. The latter are able to develop an interesting idea for the sale of goods without opening a single store.

Professionals in their field manage to build a franchise network according to one of the working models. However, they do not develop their own business, and this fact is sometimes used as a USP. They promise to direct all their efforts to support future partners. It attracts consumers.

Thoughts on how to sell a franchise abroad come to the owners of large companies. Those who managed to promote their brand in the regions of Russia. But there are still few domestic companies operating abroad. At the same time, most of them are limited to the countries of the post-Soviet space.

Study the competitors. This is the only way to convince a potential franchisee of the benefits of your business system. Include consultations, trainings, support in the package sold. Convince a potential buyer that you are providing a proven scheme that will allow him to become financially independent. After all, this is what attracts many in franchising.

Important! With an increase in the number of franchisee partners, the burden on the business will increase. Make sure that your staff allows you to fulfill your obligations with high quality.

The lump-sum contribution depends on the profit that the partner will receive in the future for three to five months. This amount is projected based on your firm's earnings. If the monthly profit is 300 thousand, the franchise must be sold for at least 900 thousand rubles.

When telling a future partner about the prospects, do not exaggerate income, do not keep silent about possible difficulties. Provide only truthful information. Your reputation depends on the success of the franchisee.

01.10.2018

Opened a franchise: what's next?

We have previously talked about . However, you need to understand that for many companies the cost of such services is seriously overestimated. And, of course, helping to sell the franchise will cost even more. At the same time, there may not be a guarantee of the result - it is likely that no one will buy the franchise even over time. Understanding this, many entrepreneurs are wondering: what is the best way to sell a franchise? In fact, there are several already proven methods, and we will just talk about them below.

Electronic catalogs

beboss.ru
buyfranch.ru

The above portals are the most popular on this topic. Therefore, to obtain the result, it is better to use them. It is important to consider that advertising on these sites will have to pay money. But, as a rule, they are not taken in vain and in the future these investments justify themselves.

To place your franchise on the page franshiza.ru/franchise, you should write to the specified contacts (candidates for placement are discussed on an individual basis). There is no specific cost on the website.

On the Internet resource topfranchise.ru/catalog, placing a franchise costs 20,000 rubles for three months. Six months of placement cost 30 thousand rubles. Placement in the catalog for one year will cost the franchisor 50 thousand rubles.

On the site beboss.ru/franchise, information about the franchise is posted for one year and this service costs from 90 to 300 thousand rubles (it all depends on the options that the franchisor receives). Naturally, with an increase in cost, the number of advertising impressions on this site increases.

The site buyfranch.ru/catalog implies the placement of a franchise for six months and a year - the cost of these services will be 6900 and 9500 rubles, respectively.

If we consider the site alterainvest.ru/rus/franchiza, then the following conditions are here: placing a franchise for six months now costs 30 thousand rubles, and for a year - 50 thousand rubles.

The prices for placements in our catalog (Top-Franshiza.ru) can be found on this page -

So, it turns out, there is a choice here and quite a good one. In principle, many franchisors use only these sites and their franchises are successfully sold. The question is more about how much an entrepreneur is willing to spend on advertising. Again, each situation must be considered individually.

Advertising on business websites

This option is almost the same as the previous one, especially since there are other ways to promote on many franchise sites. For example, you can advertise a franchise using banners and articles that detail all the conditions. You can also publish an interview with the owner of the company - this also increases the chances of a successful franchise sale. It is possible to publish news from the company and other notes to attract the target audience.

The cost of such services is usually directly proportional to the popularity of the site, so you need to look at everything in more detail. To compare the placement price, you can simply select a dozen or two sites you like and write a letter to each of them about the desire to place an advertisement. Then it will be possible to compare proposals from the owners of such resources and, as expected, choose the optimal ratio of cost and quality. In general, you can also find out about posting articles on franchise catalog sites - most of them also provide this service.

In any case, most business resources are just designed to make money on advertising. Based on this, it is possible for sure exactly those sites that will be most suitable for the budget.

Create your own blog

Of course, for more productive advertising and increasing the loyalty of potential customers, it is better to develop a separate website for the franchise. It can also be a page on the main Internet resource of the company. You can run your blog and / or YouTube channel, where you talk about the features of your business. Naturally, here you can also post reviews of existing franchisees of the company. A YouTube channel is a completely free resource, and its effectiveness can be very high. Moreover, now many people want to first look at the franchisor live and make sure of his real existence. When a person does not hide his face, this often inspires confidence. Naturally, this allows you to develop loyalty among the target audience.

contextual advertising

If you have a web page selling a franchise, then it remains to connect contextual advertising to it - this is also one of the best options for advertising on the Internet. To use it, you do not need to have any specialized skills. It is only important to study the main points, and then it will be possible to successfully apply it in practice.

To roughly understand how contextual advertising works, it is enough to allocate a symbolic amount for it. So it will be possible to see in practice the basic principles of its use. After the advertising campaign is tested, it will be possible to successfully top up the balance for a larger amount.

It is important here to set everything up for key queries. In our case, these will be phrases like “buy a franchise”, “buy a business”, “business ideas” and similar ones. Even in this case, you can use queries such as, for example, “business for ... rubles” (depending on the cost of your franchise), “business in ...” (that is, a specific direction is substituted, for example, “business in trade” or “business in manufacturing, etc.).

To clarify the relevance of requests, you can use the site https://wordstat.yandex.ru - this will allow you to track how popular this or that key phrase is. Roughly speaking, if there are at least several hundred requests per month for the words you have chosen, then they can be used for promotion. Of course, much depends on the popularity of the business as such. Some areas are of interest to thousands of people, and some - to units. All this must also be taken into account, but in general, the more requests in an advertising campaign, the better. By increasing the number of clicks, you thereby increase the likelihood of buying your franchise.

If there is no desire and time for all this, then you can always trust experienced specialists in contextual advertising. It is important to choose companies that have a good portfolio - this will allow you to find real pros in their field. It should be noted that they do not charge much for the development of an advertising campaign, especially since it is enough to pay once for setting up the system and then it will remain to receive calls from potential customers.

Posting a thread on thematic forums

Posting ads on forums is quite popular. An example is this page: https://www.biznet.ru/forum145.html. Naturally, it is better for the franchisor to be included in the discussion if it is possible. At the same time, information about the franchise, if it is popular, will usually be fixed in a prominent place for a long time. Good forums have been around for a long time, so they make it easy to make your offer popular.

Another type of such promotion is posting on social networks - this is also quite simple and usually requires minimal investment (if not free). By the way, you can generally create a thematic community and promote your franchise there by all available means. In fact, this is similar to creating your own blog, because here you can also write interesting posts and create discussions. The difference between social networks and forums can be called the fact that not in all communities you can immediately get a large number of responses. In popular publics, the ad will quickly get lost, and in communities with a small number of participants, it will be more difficult to promote a post.

Working with online reviews

Any modern business seriously depends on customer reviews. Obviously, when selling a franchise, you should be aware of what reviews are left on the Internet about the company. A very good guide to working with opinions can be found here: https://zoon.ru/msk/pages/rules/ - this page contains the main points related to how best to maintain your reputation. By adhering to the standard rules, it will be possible to create an image even for a relatively new company. Potential partners will see this and understand how conscientious the franchisor is in working with clients.

It is also worth periodically checking social networks and looking for notes in news, posts and other types of publications. Do not forget about the use of search engines in general. It is enough to fill in requests at least occasionally in the spirit of “COMPANY NAME reviews” and so on. By monitoring this information and responding to it in a timely manner, it will be possible to show people how important customers are to this company.

Participation in offline events

The Internet is great, but do not forget about offline promotion. In certain places and at certain times, you can easily find your target audience. This includes various exhibitions, seminars, forums and other events. Today, many companies promote their business through such events, and this is not surprising. A real meeting allows you to discuss all the nuances in more detail and discuss the terms of cooperation. Again, the real thing is more trustworthy than the correspondence on the Internet. In addition, the cost of participation in such events is usually low. Therefore, with proper work, all costs successfully pay for themselves.

Order advertising from influencers

It is also worth paying attention to such a type of promotion as advertising through opinion leaders - these can be various bloggers, entrepreneurs and other famous personalities. Naturally, this increases the recognition of the company and allows you to attract the attention of the target audience.

To order such a service, it is enough to write to the relevant people and for sure they will be able to announce the amount for advertising. Most (especially YouTube bloggers) do not hide this and write their contacts under each video. It should be noted that the most popular personalities take quite expensive. However, here the entrepreneur decides whether he needs this as a whole or not.

Of course, this approach also inspires confidence, especially since many well-known bloggers are serious authorities for their subscribers. Trusting them, they may well trust the franchisor, which is advertised in a video or article.

Franchise Promotion Examples

A clear indicator will be specific cases of franchise promotion, which allow you to evaluate all the advantages and disadvantages of a particular advertising method. We, in turn, found several such examples and invite you to study them.

Handyman Franchise Promotion

Specialists were offered the promotion of the handyman franchise. The main goal was to receive applications from the social network VKontakte.

The landing page for attracting customers looked something like this:

The target audience was men aged 23 to 45 who are interested in business and marketing.

VK promotion

subscribers of businessman Ayaz Shabutdinov;
Like holding groups;
audience of publics similar to the above;
subscribers of communities of elite universities.

Here is one example of such ads and statistics on it:

Obviously, ads with a low CTR were eliminated over time and the results were not the best in the end. In this regard, then I had to change the ads.

This ad turned out to be more successful:

This announcement was made with a more careful selection of the target audience and, probably, it turned out to be more attractive in principle. As a result, the results of such work have become better. As for the audience of the Like Holding group, it reacted quite well to all the announcements:

The most successful was the following announcement:

As it turned out, due to the effective setting of ads, we managed to get 912 clicks to a site with a price of about 4 rubles.

VKontakte promotion was carried out for two months, from October 16 to December 15, 2015. The above page also contains statistics from your personal account:

You can also view information on the target audience in detail:

Summing up the results of this advertising campaign, experts found out that about 14 thousand 400 rubles were spent in total. For this money, the entrepreneur received 2616 targeted clicks to his website. At the same time, 30 applications for the purchase of a franchise were received in total. It turns out that the average cost of an application from the social network VKontakte was 480 rubles.

Dodo Pizza Franchise Promotion

Another example is the promotion from the Kit Media company - in February 2017, they were asked to promote a pizzeria in small towns. assumed the opening of 328 establishments and the sale of 90 franchises per year.

The advertising campaign was carried out in 117 cities and Kit Media specialists were looking for franchisees for the federal network. Cities with a population of fifty to one hundred and fifty thousand inhabitants were considered (the cities of the Moscow and Leningrad regions were not considered).

Initially, the company decided to assess the state of the target audience in the above cities. Especially for this, a test advertising campaign was carried out and during it target groups were identified and platforms for promotion were identified. Also, during the initial events, the reaction of the audience to the creative was studied.

As a result of the test campaign, the following was done:

In social networks, the target cities were divided into two large groups - these are small (up to ninety thousand people) and larger cities. It was found that the cost of a click and application in small towns was lower - this is probably due to the low competition in the market for pizzerias.
In cities with a population of fifty to sixty thousand people, there really are people who are ready to buy a franchise and invest more than three million rubles.
In the social networks VKontakte and Facebook, the daily limit for popular ads was increased, which made it possible to receive even more new applications.
Transitions from the Google search engine turned out to be ineffective: the cost of one transition was twice as high as compared to other channels, and, moreover, the target audience spent no more than one minute on the advertising page - this is very little in order to make a decision on franchise cooperation .
Five cities booked by existing franchisees were excluded from audience coverage.

Based on this, the customer was offered two strategies to improve the results of the advertising campaign.

Lead generation was proposed as the first one, namely, attracting target audience to the site and further work with potential clients. It was also proposed to add new platforms to the work - these are YouTube and Instagram. It is proposed to increase the daily limit on VKontakte and Facebook.

Regarding the second option, it was suggested to organize webinars. It was meant to attract customers through live broadcasts. Actually, in 2017 there was an increased interest in them in general, so the relevance of this method was quite obvious. Initially, it was supposed to gather people on social networks, and then connect everyone to a closed webinar and mailing list. This strategy could well increase the time of communication with the client.

After discussing all the options, it was decided to combine all the strategies. Thirty percent of the budget was allocated for the promotion of webinars (it is noteworthy that the parent company was already involved in organizing, hosting and mailing). As for the rest of the budget, it was decided to spend it on lead generation.

In March 2017, the audience in the target communities of VKontakte and Facebook was significantly increased. In addition, the social network Instagram was tested. In total, sixteen target audience groups were formed from the following categories of people: subscribers of Fedor Ovchinnikov (the founder of Dodo Pizza), an audience of administrators of operating pizzerias and a business audience in various cities. By the way, it was from the latter that the greatest effect was obtained for the least money.

A series of publications were produced that highlighted free cities for franchise work:

Results of cooperation with Dodo Pizza

As a result of work on all channels, franchisees were found in 42 cities.

A constant growth of traffic and visitors is set up by constantly monitoring traffic and using the most modern advertising tools.

Search engines made it possible to return the target audience and this attracted people who were really interested in buying. It should be noted that the conversion from Yandex was higher than the conversion from Google.

It is also noteworthy that over time, the number of requests for “dodo franchise” through Yandex has increased.

How to franchise your business, what is a commercial concession agreement

From a legal point of view, the opening of a franchise involves the conclusion between the copyright holder (franchisor) and the business entity (franchisee) of a commercial concession agreement. Legal relations between the parties are regulated by Ch. 54 of the Civil Code of the Russian Federation. The contract in question is an agreement under which the franchisor transfers to the franchisee a set of exclusive rights to a trademark, production secrets, etc.

The contract must be concluded in writing. It must also include essential conditions:

franchisor's remuneration;
the procedure for transferring rights to use the objects of intellectual rights transferred under the contract;
scope of such rights.

IMPORTANT! A franchise agreement is an unofficial name that the Russians came up with based on the world practice of concluding similar agreements. The concept of "commercial concession" is officially used.

The set of exclusive rights that can be transferred under a commercial concession agreement includes the powers to:

for a trademark;
use of technological equipment provided by the copyright holder;
sale, promotion of specific goods or services;
otherwise expressly provided by the agreement.

The agreement may contain various conditions and requirements - both those imposed by the franchisor on counterparties, and others agreed by the parties.

For granting the rights to the developed system of conducting a particular type of business, the franchisee pays (depending on the terms of the contract):

Percentage of earned income on an ongoing basis (for example, monthly or quarterly).
A one-time payment that allows you to use intellectual rights for a certain period or indefinitely.

How to franchise your business

Any business entities can act as right holders under a commercial concession agreement, including:

legal entities;
individual entrepreneurs.

A business whose idea is planned to be implemented under a franchise agreement must meet the following general criteria:

There must be licenses, permits and other mandatory approvals (if they are required by law).
The brand or trademark must be recognizable in the market, i.e. individualized.
The business model must work, mechanisms and processes must be developed.

To conclude a commercial concession agreement, it is necessary not only to properly register the activities of the organization, but also to secure exclusive rights to the trademark in accordance with the law. To obtain a patent, you should apply with a corresponding application to Rospatent. Note that for a commercial concession agreement, the presence of a trademark registered with Rospatent is an essential condition.

Don't know your rights?

The sale of a franchise is the transfer, under an agreement, of a package of documents on the basis of which the franchisee will be able to organize his business. These documents include:

Instructions for conducting purchases, negotiations (including a scheme for communicating with clients and working with objections), marketing campaigns, etc.
List of standards and norms acceptable in the organization and conduct of business.
A brand book containing a list of potential customers, the order of positioning in the market, as well as the possibility of practical use of the brand on business cards, booklets, etc.
Employee training methods.
Standard forms of contracts and preliminary calculations on them.

How to franchise your business from scratch

You should open a franchise of your own business only if you have a positive experience of activity and making a profit. This is due to the fact that under the contract, the copyright holder, as a rule, receives a royalty (compensation for the use of exclusive rights), which is a fixed percentage of sales.

An essential condition for a commercial concession is the presence of a trademark (brand). If there is none, it should be developed and applied to Rospatent for recognition of exclusive rights to it. A trademark is recognized on the basis of:

statements;
a sample of a trademark or designation that should be recognized as such;
documents that allow establishing the well-known brand (trademark), including the intensity of its practical use, the costs incurred for its advertising, cost;
power of attorney for a representative (if necessary).

Based on the results of consideration of the application and the adoption of a positive decision, an appropriate state-approved certificate is issued confirming the exclusive rights to the trademark.

At the time of concluding a commercial concession agreement, a package of documents should be handed over to the franchisee, which can be developed independently or with the involvement of specialists. Civil law contains only recommendations for concluding a franchise agreement.

Key questions about franchising

In conclusion, we analyze the most common questions:

How can you open a franchise without a trademark?

The presence of a trademark owner is an essential condition for concluding a commercial concession agreement. In its absence or pending recognition, one should use the legal construction characteristic of a license agreement, which implies the transfer of any exclusive rights.

What are the disadvantages of a franchise agreement?

The main disadvantage is the cost, which can be, depending on the terms of the contract, up to 25% of the profit. Franchisees often delay payment of royalties for this reason or partially underpay. Successful franchisees, due to the high amount of contributions, upon reaching a certain level of income, terminate the agreement, which leads to a loss of profit for the franchisor. In addition, when terminating a franchise agreement, the issue of maintaining trade secrets is very problematic.

Any entrepreneur can open a franchise, both experienced and beginner. Buying a ready-made business allows you to make a profit faster, but it also involves the cost of the franchisee, in particular the payment of royalties.

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