Franchise Update Magazine Issue IV, 2016 | Page 61
GROWING YOUR SYSTEM
Salessmarts
Drive It Like You Stole It
Putting yourself in your candidate’s shoes
I
BY JIM BENDER
live in Detroit. I’ve been a car guy
longer than a franchise guy. I go to
lots of car events and see lots of event
t-shirts. A few years back a new t-shirt arrived with the words, “Drive It Like You
Stole It” across the back. I love that shirt. I
am sure it means lots of different things to
different people, but the primary message
for me is: Run it hard, have no fear, see what
breaks. It’s a consumer attitude focused on
performance, durability, engineering, and
manufacturing expertise.
I find applications of this attitude in my
franchise job as well. While not as snappy,
my day job slogan is, “Read It Like You
Bought It.” Its primary message is: Run it
hard, have no fear, find what is broken. You
know from experience that if there is a
weakness candidates will find it.
Every month I review comprehensive franchise development information
packets submitted by franchisors. These
include websites, blogs, brochures,
program review presentations,
FDDs, and other documents
from large and
small companies, as well as
those new to franchising. After
hundreds of reviews I continue to
be amazed at what we present to franchise
candidates. More important, I wonder how
some of these presentations ever get produced. Management must “read it like you
bought it”—because your candidates will.
Here are a few examples.
Company A has 50 units in the service
business. They explain the outstanding opportunity the market presents. Their model
is easy to operate with a little sales experience. While it is labor-intensive they tell me
employees are readily available. Their AUV
is mid-range and climbing. The investment
is modest and territory large. Would I like
to buy one from Company A?
When I read it like I bought it, I ask:
If the model is labor-intensive, what is the
cost of labor in the operating units? When
I have no fear, I ask: Why would you not
disclose the only significant expense (labor) in your business model? To see what
breaks, I ask: What expertise, experience,
and human resource programs does the
franchise own that facilitate the ongoing
recruitment and training necessary to the
success of my business? What’s broken
here is that the franchisor failed to discuss
its capabilities in the one discipline most
important to the candidate.
Company B has been in the food service business for 15 years with more than
100 units. They have a great product, new
store design, and are a fun and recognizable brand. They do business in a segment with
large, publicly traded
companies with national distribution. The
investment is appropriate and the model
competitive. Item 19 discloses only AUV,
which is slightly below that of the publicly
traded companies. Would I like to buy one
or more from Company B?
When I read it like I bought it, I ask:
While other brands have exploded, why do
you have so few units? (There is an explanation but it is never presented). When I
have no fear, I ask: Will the publicly traded
brands not just beat my brains in? (No
strategy or differentiation offered.) To see
what breaks, I ask: At your published AUV,
how do franchise owners build equity and
wealth? The franchisor simply never read
it like they bought it because they failed
to disclose stores with volumes above $1
million that rival the publicly traded offerings, and their published AUV was pulled
down by non-traditional sites that should
have been excluded. What’s broken is a
poorly crafted Item 19 that strangles the
franchise development marketing message
and negates all credibility of the founder’s
intent to create a niche brand based on
superior quality.
Company C is a service business with
12 company operations and half as many
franchises entering a crowded but lucrative
space. In business for 10 years with proven
results, well-honed systems, and happy
franchisees, they are seeking more units to
achieve critical mass. Their franchise opportunity message is based on a competitive comparison itemizing investment, fees,
territory, and discounts concluding they
are the second least-expensive franchise
in their segment. Let’s just jump ahead to
what’s broken: Although they have great
things to offer, the franchise message has
reduced the brand to a commodity. The
franchisor presents no specific marketing
or operating knowledge the competitors
do not possess. Company C’s presentation offers no points of differentiation
or added value, only price and a
few more ZIP codes. When
I read it like I bought it I
am compelled to go with a
more expensive franchise.
Unfortunately, the rather
obvious examples above are
more typical than you’d like
to believe. To create a concise,
complete, and effective sales process, we must be more critical, analytical,
and insightful about our franchise offering.
Take some time to review yours page by
page. Eliminate the fluff and get to what
matters to those making life-changing decisions. They are reading it like they bought
it, and they are going to drive it like they
stole it. The question becomes, Do you
have a sales presentation that can keep up?
“Drive it like you stole it.” I love that
line. n
Jim Bender is the president and owner of
Franchise System Builders. He has been involved in franchising for 37 years and has
provided clients with sales outsourcing and
concept packaging services since 2002.
Contact him at [email protected] or 248-647-1989.
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