7 Stages of Franchise Education

Understand the 7 steps entrepreneurs take before deciding to invest in a franchise.

While it’s easy for those of us in the industry to understand that franchising is the best way to start a business and be poised for long-term success, many Americans simply aren’t as well-versed in the benefits of becoming a franchise owner. As industry leaders and the gatekeepers to franchise success, it’s up to us to educate future entrepreneurs, show them how the initial fees are a much safer investment than going alone, and how being part of franchise can help them to build the empire they dream of.

Let’s take a look at the journey most individuals take before deciding that franchising is their key to future success.

Step 1: Understanding what franchising is.

The average American’s understanding of franchising is limited to - “I know my local McDonald’s is a franchise, and you need a lot of money to open a fast-food franchise.”

Expanding this knowledge requires research and education. Those searching for business ownership information must be enticed to explore franchising as the superior alternative to independent business ownership.

Helping these future franchisees understand that franchising actually includes everything from your local carpet cleaner and doggie daycare provider to the staffing company down the road and the fitness center you attend is necessary. Franchise brands are all around us, but most Americans don’t realize that many of the businesses they interact with every day are part of a franchise.

Additionally, providing prospective on what most consumers believe is a prohibitively high cost to purchase is necessary. Many Americans don’t realize there are many franchise offerings with initial investment costs of $500,000, $250,000, and even $50,000. Showing where your brand falls on the investment spectrum is a message that can encourage individuals to explore franchising when they may have believed they weren’t qualified to own one.

Step 2: Why choose franchising?

As exposure to the concept of owning a franchise increases, individuals seek to understand whether franchising offers a better alternative to independent business ownership. Understanding that franchising is less risky, offers a proven business model, training, support, and a ready-made customer base reinforces the message that franchising is superior.

The messaging at this stage is critical to showcasing the many advantages location owners will be able to enjoy. Everything a new business owner will have to make decisions on - from point of sale systems, to marketing materials, to logo development - are all complete and part of the purchase price of the franchise. Helping future owners to understand not only the individual cost of all these items, but the trial and error process of determining which systems to choose, which ad design to try, which recruitment tool to use for hiring, has all been made. Owning a franchise is like hitting the fast-forward button. This saves franchisees time, money, and frustration, smoothing the road ahead and bringing success closer.

Step 3: What are franchising’s strengths?

As in-market prospects start to turn toward franchising as a viable business opportunity, explaining the collective power of franchising is essential. Understanding that replicating operations, maintaining consistency across locations, and building brand loyalty through uniform customer experiences benefits all owners is critical.

This is one of the concepts entrepreneurs simply gloss over. When seeking to understand the benefits of purchasing a franchise, the focus naturally turns to the benefits covered in Step 2. Fran Dev sales teams are really good at explaining all the many benefits of purchasing with their brand provides. These benefits are easy to itemize and can present a very clear Us vs Them argument. However, broadening that discussion to cover how being part of the larger franchise makes individual owners stronger, more profitable, and more resilient shouldn’t be overlooked.

There is strength in numbers. It’s a common saying, but it’s never more true than for franchise owners. In a franchise, the rising tide lifts all boats. As individual franchise locations succeed, the brand name gains traction and loyalty with consumers. As more consumers become aware of a brand and its stellar reputation, more locations open. As more locations open, the buying power of the franchise grows, allowing all franchisees to take advantage of deeper discounts for services and products used across the brand.

Sharing this story as part of your advertising education will help to show prospects why your franchise brand is the one to choose.

Step 4: How does franchising compare to starting or buying a business?

One of the components of the American dream is to be a business owner. To set your course and prove to yourself and the world that you can build something from nothing and become a success. It’s what so many dream of. It’s also what keeps many potential entrepreneurs on the sidelines. It’s scary to think of giving up a steady paycheck and the security that comes with working in an established business.

Some people also have the misconception that owning a franchise means you aren’t able to make decisions on your own or choose your own path for your business. They fail to understand that franchising provides a solid framework and foundation upon which you can build your business. They don’t realize that many franchisors encourage customization at the local level so that individual franchisees can succeed in their unique local market.

The true turning point for a future franchisee happens when they understand that franchising means being in business for yourself, without being in business by yourself. While buying a franchise comes with some brand and operational controls, the many benefits far outweigh any restrictions.

Step 5: Preparing To Buy a Franchise Location

Now, fully committed to the idea of franchise ownership, engaged prospects will begin to speak with brand representatives and review the FDD. Questions regarding the brand’s operational systems, investment figures, and current franchisee satisfaction are all top-of-mind during this stage of the franchise journey. Only now will a prospect begin to investigate your website and complete a form on your site, looking for additional information.

How long does it take someone to get through the first four stages of the journey? It varies, but the typical prospect will spend more than 3 hours investigating options, reading and educating themselves, and considering if franchising is the right path before they ever engage with a Fran Dev representative. Those three hours could be spent over weeks or months. Which is why staying in front of the prospect with ongoing marketing that hits on the education pieces outlined in Steps 1 through 4 is essential.

Step 6: Preparing a Franchisee Business Plan

Once an in-market prospect fully embraces a future in franchising, they must begin preparing a business plan. This is when an in-market prospect transitions to an engaged prospect. They begin visiting Fan Dev sites and completing the due diligence necessary to demonstrate a readiness to own and operate a franchise location.

So, now you’ve got their attention! This engaged prospect has been on your site, and they may have filled out a form for more information. Now you really need to showcase your offering! Believe it or not, this is when your messaging needs to be even sharper and more on point. This is the time advertising needs to shift from education on the benefits of joining the industry as a whole to a focus on what your brand has to offer. Now is the time when you are competing against the other brands in your sector.

During the beginning of an individual’s journey to business ownership, your messaging should focus on the benefits of joining a franchise, all that any franchise brings to the table, and why franchising is the fastest path toward business success. As an industry, when our initial messaging focuses on the many benefits of franchising, we will all have more prospects to recruit into our individual brands.

Does this seem counterintuitive? Why should each brand spend money promoting franchising as an industry before promoting their unique brand benefits? The answer is simple. Today, brands are competing for the same small group of prospects who have identified franchising as their preferred alternative. What we are not doing is seeking to grow that pool. By growing the pool, each brand has the opportunity to recruit more franchisees. And, don’t forget you are reinforcing your brand name in each of those early ads. Repeated exposure to brands and their messages leads to stronger ties and a greater sense of familiarity which can translate into faster lead to close ratios later in the funnel.

Step 7: Investing in a Franchise

Once all questions have been answered, a new franchise owner is minted. They have completed a risk-benefit analysis, explored financing options, and understand all the ways the brand supports them as a location owner. They’ve also met all your selection criteria and are ready to open your brand’s newest location!