Franchising: An Entrepreneur’s Guide
4e
by Jonathan Comish, Scott Julian, Richard J. Judd and Robert T.
Justis
Chapter 6: Selling and Marketing
Research
Introduction
Every product, service, or idea has to be sold.
Selling is basically encouraging the transfer of products or
services from one individual to another.
Selling is one of the most important functions of any business.
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Introduction
Selling may be divided into two different categories in franchising:
1. Selling to the prospective franchisee.
2. Selling to the end customer.
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The Sales Package
The sales package generally consists of three parts:
1. Introductory Folder
2. Sales Brochure
3. Uniform Franchise Offering Circular (UFOC)
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Introductory Folder
Usually contains the following:
Information on Franchise Business
Invitation to join franchising family
Information on training programs
Initial announcement of all fees
Send for further information
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Sales Brochure
Usually contains the following:
A letter from the franchisor and brief explanation of franchising
An invitation to become involved in their franchising business
A few testimonials from existing franchisees
An explanation of the initial training program
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Sales Brochure (Cont’d)
Usually contains the following:
Additional explanations of on-going training and support
An explanation of the steps involved in franchising and
generally pictures illustrating a typical franchise operation
Loose-leaf pages discussing initial investment, financing,
minimum cash requirements, and a financial overview of the
franchise opportunity
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Uniform Franchise Offering Circular (UFOC)
Contains 23 different items which will provide tremendous
information to the franchisee including:
History and background of the franchise
Investment fees
Obligations and earnings
claims made by the
franchisor
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Slide title goes here, Arial 24pt
On one or two lines
Use level 1 text for main slide text in paragraph format. Level 1
text is Arial 22pt, black, flush left, without bullets.
Do not add bullets to level 1 text
Instead, use level 2 text for main bullet points
Use the “Increase Indent” and “Decrease Indent” buttons to
change text levels; do not just click the “Bullets” button
Avoid paragraph-formatted bullets when possible; try to keep
bullets to a maximum of two or three
– Level 3 and 4 text is Arial 20pt
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Marketing Research
Good marketing research includes the four following areas:
1.Internal records
2.Marketing intelligence
3.Information analysis
4.Marketing research
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Marketing Research Process
1. Defining the problem and/or Research Objectives
2. Developing the Research Design
3. Implementation of Research Plan
4. Analysis and Reporting of Results
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Defining the Problem and/or Research Objectives
1. Where do shoppers go when making purchases?
2. Why do they go to that particular location?
3. How does this franchise compare with competitors?
4. How strong is the market potential for this franchise business?
5. How effective is the current advertising and are there ways to
make it more useful?
6. Are there additional services which the business should
provide?
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Developing Research Design
Remember that you must carefully plan a research project to
avoid any kind of bias. Keep the following points in mind:
1.Describe the population for which the information is desired
2.Explain the sample selection procedures
3.Specify all the procedures required for contacting the
respondents
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Implementation of Research Plan
Data collection methods:
Mail questionnaires
Phone call interviews
In-person interviews
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Qualifying the Prospective Franchisee
Initial Contact:
Most crucial step in establishing rapport and developing a
relationship
Time that prospective franchisees will make their initial
judgment
Will set tone for all future interaction
Qualifying the Prospective Franchisee
Initial Contact:
Most crucial step in establishing rapport and developing a
relationship
Time that prospective franchisees will make their initial
judgment
Will set tone for all future interaction
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Initial Call Process
There are 5 important questions one should ask a potential
franchisee in the initial call in order to assess the potential for a
successful franchise relationship:
1.What is the prospective franchisee looking for?
2.Are you desirous of working for yourself or are you more
comfortable when you are working for someone else?
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Initial Call Process
1. When do you wish to start working?
2. Why are you interested in our business?
3. What has attracted you to our business?
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Four Main Areas of Qualification
Common Interests or Desires
Trust/Honesty
Availability
Financial Capability
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Questions
