Franchise Update Magazine Issue III, 2011 | Page 36

Grow Market Lead

Play up the ROI

Unit-omics
Your #1 sales key
By Joe Mathews

U

nit-level economics. This
single key is the greatest
predictor of a franchisor’s
future success! All enduring
franchise brands are built on a foundation of both the consistent successes of
its existing franchisees and almost certain
financial successes of future franchisees.
As you read this, thousands of potential franchisees are online searching for a
way to make a better life for themselves
and their families. They may not contact you until they first satisfy three basic
questions every candidate has:
1) Does your business make money?
2) Is the business sustainable? Will it
continue to make money in the future?
3) Can I see myself in the business?
If, through your online presence,
franchise candidates can predict that
your model will satisfy these three concerns, you are much closer to your goal
of filling your franchise sales pipeline
with highly engaged and buyer-ready
franchise candidates. Remember, these
candidates often reach these conclusions through “guesstimation” before
they talk to you.
So if candidates can’t quickly and
almost effortlessly determine that your
franchise model satisfies these three
concerns, they’ll quickly dismiss your
opportunity before you have the chance
to share the rest of your story. Most won’t
ever fill out a lead form or call, and you’ll
never realize how close you might have
been to a sale.

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Consider your financial returns as your
ante to the franchise poker game. If you
don’t offer franchisees consistently strong
returns, you don’t have the ante, and therefore you don’t have a seat at the table.
Carrying this logic forward, Item
19 and FPRs are more important than
ever. Make this information as public
and as accessible as possible. On your
PR materials, franchise opportunity website, and social media front (and under
the scrutiny of your attorney), circulate
stories highlighting your franchisees’
financial success.
Keep in mind there is no universal
measure for financial success. The financial results your opportunity predictably produces must meet or exceed
the expectations of your target franchisees. However, in the present economy
many franchise candidates seem to have
higher financial demands than in the past.
These include:
• Rapid break-even. Many current
franchise candidates do not have as much
financial staying power as they have had
in the p \