Capital Area Franchise Association

The Franchise sales process has changed since I began over 20 years ago.

Back when I started out, people interested in franchises used the telephone to inquire and request information.

Because they saw our ads in the Wall Street Journal or some other important franchising magazine. 

We talked to them and sent our info packets out through the mail or UPS NextDay.  The sales process had begun.

But, today franchisors are building costly & elaborate franchise recruitment websites.

• They give probable purchasers glossy franchise brochure PDF downloads.

• They use higher-powered full-blown & expensive CRMs to move the probable purchasers through to a sale.

Yet, here's the biggest complaint I hear today from franchisors.

Their sales teams can't get people on the telephone. The leads will not call them back -or the phone number was fake.

Now that is a big problem. 

You cannot sell franchise to someone who won't answer their phone or call you.  

Why aren't they returning your calls?

You built a wonderful franchise "information platform". These probable purchasers have all the research they need.  Don't they?

But, they still won't return your call.

Do you know why?

The probable purchaser feels as though he doesn't need to talk to your franchise sales team members.  You have provided all the information.

You had the best of intentions. You wanted to make it easy for their sales team to sell franchises.  It is disappointing to spend all this money.

I know what the problem & I can fix it.

Because I have been doing franchise sales development for a very long time.

And Mike Webster knows a thing or two about how people really make franchise investment decisions.

So, when you need a combination of great practical skill and wonderful social science - which no other franchise developer group can give you- give us call and we will fix your sales process for you.

The quality of franchise sales has decreased over the last twenty years.  And I know some of the reasons why & what can be done to reverse the trend.

First, we have to remember that there is no specialized franchise sales training available to franchisors.  

In contrast to Amazon, Microsoft, IBM and Xerox, there is no sales as process, no question based selling or no consultative selling training offered to franchisors.

Despite having to sell a complex product with very large price tags, franchise sales is often treated like a consumer sale.  

"Here is our franchise agreement, one price fits all. Buy my stuff." Doesn't work well.

Second, there has also been an unfavorable growth in technologies - first CRMs and now web portals.  The aim is to displace the salesman.  CRMs and web portals are sold with the promise of making the machine or website eliminate the need for the consultative based sales force.  

But, the end product is not a commodity and we cannot reduce the sales process to a mere transaction.  

Finally, many sales departments have forgotten their ability to sell.

Let me tell you about a little test I did, some years ago.

I gathered our top 50 franchisees in terms  of gross revenue.  I also found their initial applications.  I then redacted their names from the applications, but nothing else. (Back then, we weren't collecting a lot of personal information.) I distributed the applications of what would be our top 50 performers to our sales staff.

How many of those top 50 performers would our sales staff identify and process acting only on the very incomplete application?

Zero!

We would have missed all 50 - because we were now more focussed on the demands of the CRM rather than selling.  We demand too much information before we begin the sales process - and most of the information is not needed.  (And what is needed isn't asked for!)

We have forgotten how to sell.  We aren't mentoring our younger sales forces, the way I was mentored.

So, take a look at your online application.  Ask whether you really need the candidate to fill out all the information just in order to start your sales process.

If you only sell one franchise because of attending this Lunch and Learn, it will be worth it.

Time: Tuesday, May 20th from 11:45 - 2pm

The Tower Club in Tysons Corner VA 

Registration 11:45 - 12:15 - Lunch 12:15 - 12:45 - Round Table 12:45-2:00

Click Here to Pay and Register 

Remember - "Bring out Your Dead? Well, you might be killing your leads too early, too. 

In the early 1990s,  I was in charge of US development for a top QSR franchise. 

At that time we relied on targeted marketing by DMA (Designated Market Area), trade shows and the display advertising to attract attention to our franchise offering.

Ours leads came in by telephone, brochures & applications were mailed and the follow up was telephone and FAX machine.

We were very good at managing our prospective franchisee pipeline using a basic CRM and Excel. We tracked conversion, diligently followed up with candidates until they bought or dropped out of the franchise sales process.

So we pretty much knew a lead was dead when it was dead. We had done our best with our qualified leads to maintain interest in our program but for some we couldn't create that intense desire to buy.

We knew some of the leads might make other franchise investments and others would make no decision to buy a franchise.

Our brand was very well known. We invested heavily in lead generation and got a lot of leads every year. 

But we wanted to do more with the qualified leads who quit us and our process.

So we brought our sales team together to solve the problem of following up with someone who was no longer pursuing our franchise and may not be enthusiastic about talking with us.

We knew we had to have a solution that was thoughtful and easy for our prospects. We needed the qualified lead to respond to us and it was important that they do something that told us they wanted to re-activate their franchise application.

Here are the four simple things we did -

• Created a well crafted an inviting sales letter to re-attract attention.

• Used the best and fasted technology available - A FAX machine. 

• Asked our dead lead one question - "Would you like to reactivate your franchise application?"

• Gave them one thing to do to restart the process - Simply fax back this letter and we will get you back on track to developing your first restaurant".

The program worked great!

We revived "dead" leads and sold more franchises.  How might you try that today?  Come to CAFA on Tuesday, May 20th and let's chat.

If you only sell one franchise because of attending this Lunch and Learn, it will be worth it!

Time: Tuesday, May 20th from 11:45 - 2pm

The Tower Club in Tysons Corner VA 

Registration 11:45 - 12:15 - Lunch 12:15 - 12:45 - Round Table 12:45-2:00

Click Here to Pay and Register 

Neil Rackham is one of the best known modern sales leader who combines expert theoretical knowledge with practical intuitions to deliver effective sales-as-a-process tools.

Sales-as-a-process dates back to NCR's founding father, John Henry Patterson. Rackman, the author of Spin Selling, has updated some of Patterson's original thinking about how to create an effective sales process.

One surprising result is that passion won't produce sales.  Because passionate people aren't conscious listeners.

Neil Rackham explains why in this video -pay attention to the first 2:12 minutes.  [Neil is talking about entrepreneurs, but he could be also talking about franchisors.]

The fundamental reason why [franchisors cannot sell franchises] is that, almost by definition, a franchisor has a deep enthusiasm for what they are doing and their products.

And one thing we know about selling, we've known for nearly forty years, the best selling isn't at all about your products and what you can offer, it is very much about the customer and their needs.

And franchisors very often swamp the customer.

After all, since 1970 research has shown that in a sales call the more time a customer talks the higher the probability that the call will succeed.

In my experience, franchisors cannot help themselves.  When they get in front of the customer, they want to tell them The Story.

It can be a very compelling story, it just doesn't cause the franchise prospect to buy, as well as if they focused on the prospect and listened to what the prospect needs were and worked from there.

Franchisors do listen], but they listen very selectively.

They are listening for how can I get in and start talking about what I can offer.

[But] when you study highly effective sales people, one of the things you find is that highly effective sales people talk about solutions or what they could offer very late in the sales process.  Less effective sales people cannot wait until they can start talking about what they can do.

Franchisors are impatient people.

And often, they will jump in too quickly and start talking about answers.  And the prospect listening to them doesn't link that answer to their needs.  Because prospects have to start with their needs and move towards what fulfills their needs.   The prospect doesn't want to start with the franchisor's products and start to work backwards. 

Too many franchisors say: "We have this Great Thing, Do You Need it?"

And the answer the prospect often gives is: It is a Great Thing, But We don't Need it".

If you only sell one franchise because of attending this Lunch and Learn, it will be worth it.

Time: Tuesday, May 20th from 11:45 - 2pm

The Tower Club in Tysons Corner VA 

Registration 11:45 - 12:15 - Lunch 12:15 - 12:45 - Round Table 12:45-2:00

Click Here to Pay and Register 

For Steve's entire presentation to CAFA, March 18th, 2014, please click here.

Two weeks ago, I wrote up an overview of How Important Franchising was to the US Economy, based on Steve Caldeira's presentation to CAFA.

I have looked at the presentation further, to find out what the IFA was doing at on the legislative level.

Here is an overview of the IFA's top concerns.

Now, I found it very interesting that the IFA, which is mostly comprised of franchisors, would be interested in "Workforce Regulations".  

My experience as a franchisor is that franchisors are very reluctant to discuss with their franchise owners anything do with HR compliance.  

Franchisors leave it to franchisee owner's to obey all state and federal workplace laws.

Even more puzzling to me was this slide:

Ok, I get why franchisors are worried about anything that extends the jurisdiction or reach of the NRLB.

But, why are franchisors worried about David Weil, "the nominee for Wage & Hour Division Administrator"?

Wage and Hour violations happen at the franchise owner level, unless the franchisor has significant units not in compliance.

The audience didn't get an chance to ask Steve more about this, so I am putting this out there.  

Why should the franchisor be worried about more Wage and Hour violations, unless their own units are not in compliance?  

Why is the franchisee's failure to comply with local state and federal Wage and Hour laws a concern for the franchisor?  I don't get it.

Over the past three years it's become an annual event for the Capital Area Franchise Association - CAFA to have Stephen Caldeira, President of the International Franchise Association - IFA get the new year started with his franchising outlook.

Until this year when unfortunately Steve was unable to make for CAFA's January 2014 lunch & learn event. No worries however Steve made Scott Lehr Vice President U.S. & International Development at the IFA available to take his place. I have known Scott for as long as I have been in franchising and we were pleased to have him stand in for Steve. 

Well our unprecedented winter weather put the kibosh on CAFA's January meeting at the very last minute. We had to reschedule. And when we did I received an email that Steve could speak at our March event.

For those of you who haven't made it to a CAFA event attendees begin arriving around 11:30 AM or so to sign in, get their badges, talk with each other until the lunch service begins. Our featured speakers and panelists session begins at 1:00 PM, ends promptly at 2:00 PM and there's post meeting networking as well.

One of the pleasures of being President of CAFA is every year I get to have Steve at my table for lunch every January and of course this year in March. Which is great and I look forward to it each year. 

Now something I learned about Steve 3 years ago was that when he speaks at a luncheon like CAFA as part of his game plan he forgoes lunch and pays all of his attention on his table mates. This year was no exception. And one of the things he shared with me was how much he enjoys the CAFA meetings each year. There's one additional benefit to sitting with Steve, the table gets an extra dessert to share. 

Both Steve and I in our careers have worked for large QSR franchise systems and we compared notes on franchisee and franchisor relations and in particular working with franchisees to resolve troubled situations. Our experiences paralleled in that it was always more desirable to exhaust all efforts to work things out with franchise owners whenever possible. Franchising and the IFA is fortunate to have a leader like Steve who has hands on franchise experience and is so genuinely relatable and engaging.

In Steve's presentation it was reinforced how vital franchising is to the US economy and livelihoods of so many people.

Here are some select slides that do a great job of showing the importance to and impact of franchising.

"Neither snow nor rain nor heat nor gloom of night stays these couriers from the swift completion of their appointed rounds"

As a result of the snow storm, we are delighted to have a twin bill!

Both Steve Caldeira, President & Scott Lehr, Senior Vice President, U.S. & International Development of the International Franchise Association to speak with us on Tuesday, March 18th 2014, Columbia Country Club, Chevy Chase MD.

Steve & Scott will explain & take quesstions on the IFA's views on the following important topics.

How will the franchise industry grow in 2014?

Will there be additional changes to the ACA, like the definition of a full time worker?

What is IFA doing to combat the rise of state legislation targeting franchise relationships?

How is IFA going to play in the 2014 midterm elections?

 Stephen J. Caldeira, President & CEO  IFA

 Scott Lehr,  Senior VP U.S. & International Development, IFA 

   Warren Lee Lewis, Moderator 

Time: Tuesday, March 18th, 2014 from 11:45 - 2pm

Columbia Country Club, Chevy Chase MD

Registration 11:45 - 12:15 - Lunch 12:15 - 12:45 - RoundTable 12:45-2:00

Click Here to Pay and Register 

ATTENTION:

DUE TO THE WINTER STORM

THE CAFA EVENT AT THE COLUMBIA COUNTRY CLUB 

IS POSTPONED.

DETAILS FOR A NEW DATE TO FOLLOW

WARREN L. LEWIS

JOE CARUSO

I want to personally invite you to attend our next CAFA Lunch and Learn meeting, November 19th.

We have a very interesting and challenging topic:

How Franchisors Can Avoid Large Dollar Damage Awards Created by Franchisee's Actions?

(It might subtitled: "The Dumb Things that Franchise Systems Do To Themselves")

The Franchisor and Franchise Owner relationship is a difficult one, when it comes to making sure that the Franchise Owners have enough information, correct incentives to be in compliance with the law.

Failure results in million dollar claims against the franchise system.

These million dollar cases should worry all franchisors and franchise owners. I know it keeps in-house franchisor counsel awake!

The franchisor wants the franchise owners to have the best compliance advice possible.  For everyone's sake.

How can a franchisor do more than inform franchisees about the law and urge them to confer with their lawyers to confirm that they are compliant?

Listen to our expert panel & bring you own questions and solutions.

Click and Register Here.

For those of you who don't live in the Washington area, if you know any Franchisors, Franchisees or Industry Suppliers,  forward this invitation along to someone you know.

Looking forward to seeing you all, again.

Click and Register Here.