Red Boswell talks with us about how to generate franchisee leads. This is one of the hottest topics with franchisors. This discussion will benefit both new and seasoned franchisors.
Red is a unique character, and I mean that in a good way. This guy has been driven to make money ever since he was a kid. Starting in grade school when he was selling NFL pencils for a profit, into hos twenties when he build up a pet services franchise system? all the way up to 148 units. He?s been operating in the world of franchising practically his entire adult life. He?ll give us more details in just a few minutes.
Red now gets to fuel his business building passion as President of the International Franchise Professionals Group (IFPG), The World?s Largest and Most Respected Franchise Consultant Organization.?.
Red Boswell Intro
Get to know Red Boswell
Topic Segment ? Generating Franchisee Leads
TOPICS DISCUSSED IN THIS EPISODE:
The cost of a lead
The average cost of a lead in 2019 is $10,000
That number does not including commissions
That number includes large companies that don?t need to spend anything for leads because their brand is so well knows that they don?t need to advertise to get leads
Small companies usually pay a lot more to generate leads since their concepts usually don?t have any brand recognition
16 sources of leads
Consumer / Clients
Industry / Conversions
Live events / Expos
Mobile / Roadside
Upgrade / Multi-unit Operators
The marketing mix is a moving target and is different for every concept. There is no silver bullet, one size fits all solution for the marketing spend mix.
Do a lot ? do it for a long time ? test and measure
Every option will involve one or all of these three
The trick is to utilize the options that require the resources you have the most of.
Red?s Favorite Five
Red says that every solution must be customized to the individual concept, but if he HAD to pick his favorite five, the would be:
Best option for any size franchisor
You pay to be a member then pay a commission per close
Many broker groups won?t accept smaller start-up concepts
Big saver of time and resources
Hire a PR firm
Find one who is familiar with the world of franchising
IFA members a plus
Validate with their past clients
Converting existing business people who are struggling
You never know who may be disenchanted with operating their own concept and who would love to convert
These are cold calls usually
Live Events / Expos
Usually between $5k and $10K per event
Use common sense and work it hard
Energy ? follow-up ? is key
You could make online all five
PPC Pay per click / Banners
SEO of your own franchise site
Develop a GREAT portal that grabs and tracks leads and conveys the information well. Portals tend to generate? a lot of volume with lower quality, but still worth the spend
Social media posting
Big data targeting
Job boards ? make a job advertisement? with the tag ?some investment required? ? describes a dream job
Bonus Source: Guerilla Marketing
Example: flyers on every windshield at the local franchise expo
Common mistakes made by franchisors as it relates to lead sources:
Lack of infrastructure ? be able to walk away from your business for 6 months
Don?t try to run your business and franchise it all by yourself
Franchise Development person
Onboarding / Training person
Field support person
Lack of good ops manuals
Not charging enough for the franchisee fee in order to pay for the costs associated with lead generation and other expenses
Negotiate a broker commission too low ? nobody will show your system if the commission is too low
Rob Vinson talks with us about Franchising 101. Where to start when you backed into franchising by accident, and don’t know where to go.
Rob has been a franchise attorney for 26 years. He was a partner at the prestigious law firm of Strasburger and Price, which is now Clark Hill after an April 2018 merger. Over 13 years he worked his way from associate up to partner. In 2001, he started his own law practice of Vinson Franchise Law and has been doing that ever since. He works, and has worked, with clients all over the United States as well as internationally.
Rob is also a founding partner of FranMan Inc, a company that specializes in producing franchise operating manuals.
In 26 years Rob has accumulated a great deal of experience that he is going to share with us today.
Rob Vinson Intro
Get to know Rob Vinson
Topic Segment Franchising 101
TOPICS DISCUSSED IN THIS EPISODE:
What is Franchising?
Business Format Franchising versus Product Distribution Franchising
What is the difference between franchising and traditional licensing?
What are the three elements that must be present in order to be considered a franchisor by the FTC?
Just because you may not be considered a franchise by the FTC, you may still be considered a franchisor by the state government.
Why franchise instead of expansion through company-owned locations?
What types of businesses lend themselves to franchising and which don’t?
What elements of a business does Rob look at when advising a client on whether the business is “franchisable”?
What resources are available to a new franchisor to help navigate the waters of franchising?
How can a franchisor find a franchise attorney?
What should the franchisor consider when selecting a franchise attorney?
What services do franchise attorneys offer to franchisors?
What and why is the FDD and Franchise Agreement?
What are the dangers of a new franchisor using a template to create their own DFF and Franchise Agreement?