Understanding the Franchise Marketing Systems Sales Process: From Presentation to Closing

The franchise sales process is a critical journey that transforms interested candidates into successful franchisees. At Franchise Marketing Systems (FMS), this process is meticulously crafted to ensure both the franchisor and the franchisee benefit from a mutually rewarding relationship. This article delves into the FMS sales process, outlining the key stages: presenting, qualifying, and closing a franchise sale. Understanding this process is essential for anyone involved in franchising, whether they are potential franchisees or franchisors.

Stage 1: Presenting the Franchise Opportunity

The first stage in the FMS sales process is presenting the franchise opportunity to potential candidates. This stage is all about capturing interest and conveying the value of the franchise.

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1.              Initial Contact: The process begins with initial contact, where potential franchisees express interest through various channels such as the FMS website, franchise expos, or referral programs. During this phase, the goal is to provide enough information to pique interest without overwhelming the candidate.

2.              Information Package: Interested candidates receive a comprehensive information package. This package typically includes an overview of the franchise concept, the history and success stories of the brand, details about the franchising model, and the support provided to franchisees. The information package is designed to be engaging and informative, addressing common questions and highlighting the unique selling points of the franchise.

3.              Initial Call: Following the dissemination of the information package, an initial call is scheduled. This call serves as an introductory meeting where FMS representatives provide a high-level overview of the franchise opportunity. The goal is to establish rapport, understand the candidate’s motivations, and assess their initial fit for the franchise.

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4.              Webinar/Presentation: A more detailed presentation or webinar is conducted to delve deeper into the specifics of the franchise. This session covers topics such as market potential, financial expectations, operational details, and the overall value proposition. Visual aids, success stories, and data-driven insights are used to make the presentation compelling and informative.

Stage 2: Qualifying the Candidate

Once interest is established, the next stage is to qualify the candidate. This stage ensures that only those who are genuinely suitable and capable of running the franchise move forward.

1.              Detailed Application: Candidates are required to complete a detailed application form. This form collects information on the candidate’s background, financial situation, business experience, and motivations for pursuing a franchise. The application helps FMS assess whether the candidate meets the basic qualifications for becoming a franchisee.

2.              Financial Assessment: A thorough financial assessment is conducted to ensure that the candidate has the necessary resources to invest in the franchise and sustain its initial operations. This includes reviewing personal financial statements, credit history, and available capital. The goal is to verify that the candidate can meet the financial commitments associated with the franchise.

3.              Background Check: A background check is performed to confirm the candidate’s credentials and to ensure there are no red flags that could affect their ability to operate a franchise successfully. This step is crucial for maintaining the integrity and reputation of the franchise network.

4.              Franchise Disclosure Document (FDD) Review: Candidates receive the Franchise Disclosure Document (FDD), which provides detailed information about the franchise, including legal obligations, financial performance representations, and the terms of the franchise agreement. Candidates are encouraged to review this document carefully and seek legal advice if necessary.

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5.              Discovery Day: Qualified candidates are invited to attend a Discovery Day. This event allows candidates to visit the franchisor’s headquarters, meet the leadership team, and see the operations firsthand. It’s an opportunity for both parties to evaluate each other more closely. For the candidate, it’s a chance to ask detailed questions and get a feel for the company culture. For FMS, it’s a final check to ensure the candidate is a good fit for the franchise.

Stage 3: Closing the Franchise Sale

The final stage in the FMS sales process is closing the franchise sale. This stage is about finalizing the agreement and setting the stage for a successful franchise launch.

1.              Final Meeting: A final meeting is held to address any remaining questions or concerns. This meeting is crucial for ensuring that the candidate feels confident and fully informed about their decision to invest in the franchise. It’s also an opportunity to discuss any last-minute details regarding the franchise agreement and initial setup.

2.              Franchise Agreement: The candidate signs the franchise agreement, officially becoming a franchisee. This legal contract outlines the terms and conditions of the franchise relationship, including the rights and responsibilities of both the franchisor and the franchisee. It’s essential that the candidate fully understands and agrees to all terms before signing.

3.              Initial Fee Payment: Upon signing the franchise agreement, the initial franchise fee is paid. This fee grants the franchisee the right to use the franchisor’s brand, systems, and support. It’s a significant step, marking the beginning of the franchisee’s journey.

4.              Training and Onboarding: After the agreement is signed and the fee is paid, the new franchisee undergoes comprehensive training and onboarding. FMS provides extensive training programs designed to equip franchisees with the knowledge and skills needed to operate their franchise successfully. This training covers all aspects of the business, from operational procedures to marketing strategies.

5.              Site Selection and Setup: For franchises that require a physical location, site selection and setup are critical next steps. FMS assists franchisees in selecting a suitable location, negotiating leases, and designing the store layout. The goal is to ensure that the franchise is set up for success from the outset.

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6.              Launch Support: The launch phase is a critical period for any new franchise. FMS provides robust support during this phase, including marketing campaigns, grand opening events, and ongoing operational assistance. This support helps franchisees hit the ground running and build momentum from day one.

Ongoing Support and Relationship Building

The sales process does not end with the launch of the franchise. FMS emphasizes the importance of ongoing support and relationship building. Regular communication, continuous training, and access to resources ensure that franchisees remain engaged and successful. FMS provides a range of support services, including:

• Operational Support: Continuous assistance with daily operations, troubleshooting issues, and optimizing processes.

• Marketing Support: Ongoing marketing initiatives to drive brand awareness and customer engagement.

• Financial Support: Guidance on financial management, budgeting, and profitability optimization.

• Network Support: Opportunities for franchisees to connect, share experiences, and learn from each other through forums, conferences, and online platforms.

When Chris Conner founded FMS in 2009, the vision was to be a dedicated full service franchise consulting service for businesses to be able to effectively franchise a business model.  The Franchise Marketing Systems sales process is a well-structured journey designed to ensure that both franchisors and franchisees achieve success. From the initial presentation of the franchise opportunity to the detailed qualification of candidates and the final closing of the sale, each step is meticulously crafted to build a strong foundation for a thriving franchise relationship.

By providing comprehensive information, thorough assessments, and ongoing support, FMS ensures that franchisees are well-prepared and confident in their new ventures. This systematic approach not only facilitates the growth of the franchise network but also contributes to the overall health and sustainability of the franchise industry.

Meet the FMS Team:  Meet the FMS Team – YouTube Video