Recently in Sales Category

How Effective are Your Email Campaigns?

Converting those prospects into franchise sales appointments? Or could you use some help?

New templates, perhaps?

"Our own sales teams at LinkedIn swear by these: five core templates to suit different prospects, different situations, and different stages of the buyer journey"

Personally, although I love LinkedIn's platform, I have serious doubts that I would ever respond to this type email, favourably respond.

I am more likely to swear at it, and not by it.

"Lost for words? Here's your starting template for inspiration:

Subject line:

[Prospect Name], Jessie recommended I reach out

Blah, blah and who cares what the message is. Because, in my experience, these types of messages never end well -- for me.

And sure enough, if morbid curiousity drove me on, I find the following "offer", which is to do someone's homework for free.

Message:

Hi [Prospect Name],

Our mutual connection, [connection name], and I were talking recently about [hot topic]. She said you were an expert on this issue.

I'm writing an article about [hot topic] because it's relevant, timely, yet confusing to many of my customers. Can I include your perspective, [Prospect Name]?

Regards, [Your Name]

Sure, here is my perspective: Read and quote any of the 18 articles I have written on the topic. And no, I don't want coffee.

(Note to self: disconnect from "Jessie" as soon as possible.)

So, if not LinkedIn templates, what is the powerful sales too you might be missing out on? Conversational talk -- because you would never use any of these words, or the sentences, in this template when talking face to face. So, don't use them in an email. You are welcome, no coffee required.

For the 5 Most Fascinating Stories in Franchising, a weekly report, click here & sign up.

Here is a good dialogue between two experience franchise salespersons - about both the value of scripts and active listening.

The two concepts go hand in hand, when used correctly.

Christina Chambers:

I have always found that good franchise sales reps have the ability to truly listen to candidates, ask enough probing questions to unveil true buyer motivation early on, and use the candidate's own motivations as tools for the close.

You can find out pretty quickly during on-boarding and call shadowing in the first 30-60 days whether you have a sales rep that has this ability or willingness to learn, practice, and master.

If they don't, then it's highly doubtful they will really sell vs just taking an order. ...

Joe Caruso:

Christina Chambers writes about on-boarding and call shadowing in the first 30-60 days"

How did you do this? Was it a formal or informal process?

Christina Chambers:

Formal process. Starting with rep shadowing me or another experienced rep so they can hear how it's done, then shadow them.

To help give direction, I provide a "script" / a la carte list of probing questions that the rep can use as the conversation flows.

Also suggest not being in the same room while shadowing calls or you create anxiety ... conference in from a separate line on mute. Meet immediately afterwards, talk about the good and the not-so-good as teaching opportunities. Rinse and repeat!

Joe Caruso:

Hey Christina Chambers brilliant of you to explain how you were able to do this with your franchise sales team members. Especially like the tips on observing and keeping the salesperson comfortable, that's a good idea.

Christina Chambers:

Thanks Joe Caruso! Happy to share best practices L

Joe Caruso:

Christina Chambers what did you discover after doing this. Did you see any common patterns?

Christina Chambers:

Yes! The ones who had mediocre or poor sales results were those who fought the process and feared that asking deep questions would "turn off" a candidate before building rapport by becoming their "friend" first.

On the flip side, those that embraced active listening but relied heavily on a questioning script in a robotic manner also did not perform well.

A sales rep who can sell has to have that mix of process and finesse, with a heavy dose of overall brand knowledge.

For more on the thread, go to LinkedIn

For the 5 Most Fascinating Stories in Franchising, a weekly report, click here & sign up.

A franchisor needs to have an exclusive conversation with a prospective franchisee.

You don't get a sale until you have that exclusive conversation, dialogue or discussion. The sooner you get to the exclusive conversation, the shorter your sales cycle.

Many Vice-Presidents of Franchising know that their lead generation marketing mix and budget is not producing, but they don't why. Their sales cycles are longer and cost per acquisition is higher.

Some Franchisors rely too heavily on franchise web portals for leads. It is a mistake for capital intensive franchises to use web portals for prospecting. These franchisors need to rebalance their marketing budgets by including a significant portion for outbound marketing.

Why Web Portals Don't Work for Capital Intensive Franchises- The Web Portal is a Numbers Game

Franchise web portals are a popular way for franchisors to generate inquiries that hopefully turn into leads.

The VP of Franchising uses a web portal because he or she believes sales is just a numbers game. More inquiries turn into more leads and therefore more sales. This is simply not true.

Wasteful spending on franchise portals shows this.

The web portals do not create the necessary exclusivity.

A capital intensive franchisor will take time and effort to construct a compelling landing page which cuts through the clutter of other franchise concepts for sale on the web portal.

They take advantage of the web portal's filtering to ensure the most qualified candidates inquire.

They train their sales team to promptly follow up by telephone and email all the referred inquiries.

Suppose that the franchisor is successful in creating a compelling landing page and messaging. The most qualified candidate, talented with capital, takes the time to accurately complete the web portal inquiry form.

Now that's fantastic right? No.

Not so fast, something else happens. The inquiry from the prospect with talent and capital gets intercepted. Intercepted you ask, how and by whom? By the franchise web portal.

That valuable candidate who you attracted is also attractive to your competitors. The web portal operator knows that and will sell or deliver your candidate to your competitors.

One way this works is the following. The candidate finishes the portal's inquiry form qualifying process, and then gets a pop-up-box with suggestions for other franchise investments for them to consider and automatically submit their information to.

Now it's off to the races and the first franchisor to move the candidate from the digital world to the physical world where one-on-one over the telephone a franchisor can build a relationship and then the sale.

Seems a little unfair that you won the candidate's attention for your concept only to lose out to some other franchisor who got them on the telephone first.

Closed deals are a result of exclusive conversations with prospects.

Smart Franchisors don't send their best leads to their competitors.

(If you liked this, you will want to know more about prospecting: Using LinkedIn to Sell Franchises -a Course from Franchise-Info

A no cost course with 13 lectures delivered to you directly by email)

Print leads were different from internet leads.

It used to be that a print lead would phone you after seeing your print ad.

While on the phone with the prospective purchaser, you had to qualify them financially. You also had to separate pretenders from the contenders. In restaurant franchising, the pretenders would often want to know if we would come and "look at their site". "Well, not until we are in the site selection phase - which happens after you sign the franchise agreement."

Prospects were easier to qualify because they phoned you.

But over the last ten or eleven years, internet leads have replaced print leads.

Now, qualifying those leads is harder for two reasons:

1. There many more internet leads.

2. It is very hard to get the internet lead on the phone.

I have spent many years reviewing a franchise sales programs - from the time when all the leads were print to now, when most of the leads are digital.

And, I have always found the same thing. Leads can be sorted or segmented into three groups: Cannot Buy, Ready to Buy & Not Ready to Buy, Yet.

Internet leads are much harder segment because it takes so much time to get in contact with the lead.

Mike and I developed some ad hoc systems to handle this problem, but we weren't really happy with this solutions performed. Either, like telephone verification, they were too costly or they did not sort the groups properly.

Early in 2015, we started experimenting with an entirely new system - one that relied upon some simple autoresponder rules.

We can classify a lead into: cannot buy, ready to buy, or not ready to buy, yet based on how the lead would respond to our messaging sequence.

Best of all, it was a great combination of human verification & autoresponder technology.

We are confident that we can help you sort out your franchise lead problems.

If this sounds like your franchising story & you want some help solving your problems call me at 443.502.2636 or email me [email protected]

The show Shark Tank, where entrepreneurs pitch investors for capital, has some great business lessons . . .

1) If you get what you ask for, take it. Mark Cuban offered one entrepreneur exactly what he requested. The entrepreneur then asked for more and lost the deal. No one likes to do business with someone who gets what he requests and then asks for more; it's a sign of what's to come in the relationship.

2) Networks matter. The Shark Tank investors bring huge value in their networks. Daymond John got the sticker guys distribution in Best Buy as well as retail distribution for Nubrella. Lori Greiner is able to help the businesses she invests in get on QVC. When you're looking for investors understand their networks and more importantly if they're willing to leverage them for you. Ask about this before you sign a deal. Sometimes a deal with less lucrative financial terms is better if it brings the right network to the table.

3) Do your homework. When Mark Cuban negotiates and tells you a deal is final, he means it. I've seen enough episodes to know this, so I cringe when an entrepreneur tries to negotiate further and loses a deal entirely. You won't have the benefit of seeing most people you'll negotiate with on TV in advance, but you can still do plenty of due diligence -- like researching their past deals and talking to their business partners.

The most successful entrepreneurs also know enough about the Sharks to customize their pitch. They tell each one why he or she should personally be interested in the business.

4) Get an advisory board. Getting a Shark to invest in your company is one way to get partners with experience and a network, but not everyone can be on Shark Tank. Creating a strong advisory board can also increase your opportunities; for a small amount of equity you can build a great board. I've found that retired executives with extensive networks are often eager to get back in the game and make tremendous advisory board members.

5) Know your absolute bottom going into a negotiation. One entrepreneur was offered a deal and needed to think about it. By the time she decided to move forward, the Sharks had talked among themselves and reduced their offer. If she knew her absolute bottom going into the show, she could have made a decision on the spot and had a better deal.

Too many entrepreneurs are unsure of what they'd accept and their hesitancy gets them worse deals. Also, if you don't know the lowest offer you'd accept, you could commit to something you'd regret later. Of course, there may be exceptions if unexpected elements come into play, which sometimes happens on Shark Tank.

6) Solve your own problems. The most successful founders built companies to solve problems they faced. They're building for a market they understand and are passionate about. A couple examples are Travis Perry who developed ChordBuddy to help his daughter learn to play the guitar and Eric Corti who invented the Wine Balloon to better preserve wine after he and his wife opened a bottle.

Of course, the problem you're solving has to address a sizable market. No Sharks wanted to invest in Ledge Pillow because they didn't think the market was big enough.

7) Investors buy into people as much as ideas. The Sharks get most excited about a passionate, likeable entrepreneur. Be honest. If that's not you, and you need investors, consider finding a partner who fills this role.

8) Do a deal that works for everyone. The Sharks often say they won't invest in something because they don't have the right background or connections to help the business. If you're looking for investors, try to find those that can help you by serving as more than just a bank. In any deal, whether it's related to VC or not, make sure both sides provide value. You're probably going to do more deals in the future, and a one sided deal won't be good for your reputation.

9) Listen. The Shark Tank investors offer great advice when they turn people down. If you're told "no" don't be so displeased that you can't listen to the rationale. And, if they don't tell you why, ask so you can leverage that advice moving forward. This is a chance for insight from experts.

10) Don't respond to people you're pitching with disdain or sarcasm - even if they say something nasty. The people who do, tend not to get deals. How you act in a pitch will shape what potential partners think it would be like to work with you. In fact, maybe they're pushing you just to see how you'll react under pressure.

11) If you can't sell, learn to. This lesson is for everyone. Even if you're in a large company, you need to sell your ideas and yourself to get ahead. In the case of investors, Sharks are looking for people who can sell. And, business valuations are significantly higher when someone has revenue. Do whatever you can to get sales prior to approaching investors. Mark Cuban stresses that selling is one of the most important skills for entrepreneurs in his great book, How to Win at the Sport of Business.

12) Prepare. I've seen entrepreneurs on the show who don't know their financials or seem to freeze up in the middle of their pitch. When you're going to a meeting or pitch, practice enough that you can talk about your business even in stressful circumstances and please know your financials. The most successful people are usually over prepared. This is something Barbara Corcoran mentions in her excellent book, Shark Tales: How I turned $1,000 into a Billion Dollar Business.

13) Demonstrate your commitment. Investors want to see that you've taken a risk - investing your money and time -- showing that you believe in your business. Don't ask for their money if you haven't invested yours.

14) Patents are extremely valuable. A worthwhile investment if you have something unique.

15) Have options. You can almost always tell when someone believes they have no other options. Those entrepreneurs get a worse deal than they'd otherwise receive. Whether you're selling a stake in your company or buying a car, you need alternatives to get the best deal. One alternative is knowing at what point you'll say "no."

16) Ask, "Are there any other offers on the table?" Some people have gotten much better offers when they ask this rather than responding to the offer that was given. Like anything, the more competition you can create for your business, the better deal you'll get.

17) Don't quibble over small numbers. I've seen deals get lost because someone is dickering over 1%. Don't do it.

18) Ask for something valuable . . . besides money. Steve Gadlin and Mark Cuban were negotiating an investment in Steve's business, I Want to Draw a Cat for You. When the financial terms were on the table, Steve asked Mark if he'd draw and sign every 1000^th cat drawing. Mark said "yes." It was easy for Mark to say "yes," and it will add value to Steve's business. Look for opportunities where the other side can provide additional value without any out of pocket expense.

19) The right partner offers more than financial terms. There are some great businesses that are giving up huge chunks of equity for a seemingly small amount of money. Kevin O'Leary bought into Talbott Tea at what seemed like a great valuation for him, but within a short period of time he had the business packaged up and sold to Jamba Juice. When you do a deal with a Shark you're giving up more than you'd offer someone else, because they can exponentially grow your business faster.

20) Don't tell potential investors they're wrong. When you tell Sharks they're wrong - especially in front of other people (like the national TV audience of Shark Tank) they will naturally stop listening to you. No one wants to be told they're wrong in front of other people. Instead, say, "I think that . . ." or "What do you think about looking at it like. . . ." How you defend your position makes a difference.

21) If someone asks you to sell him something, ask, "Why do you want it?" Daymond John challenged an entrepreneur to sell him a pen. The guy did a good job, but I think he could have done better. Instead of jumping right into selling the pen, he could have asked Daymond what he was looking for in a pen and customized the pitch.

22) Find investors who are passionate about your business. The Sharks gravitate not only to the businesses they like but the ones that they're passionate about. Kevin O'Leary invested in the tea company (loves tea); Daymond John in the trash can cover company (he said he had just lost his own garbage can cover); and Robert Herjavec in the guitar learning company (he has a lifelong dream to learn guitar). Those entrepreneurs were solving problems that the VCs personally experienced. Do research to find partners passionate about what you do. You'll have a higher likelihood of making a deal.

23) More Sharks are better than one. Every investor will bring a different network and expertise to the table. Jewelry company M3 Girl Designs, founded by Maddie Bradshaw when she was 10, was offered $300K from Lori Greiner and Mark Cuban. Maddie said she'd take the deal if they'd let Robert Herjavec in as well. She got the same financial deal with one additional investor. See if you can increase the parties who have a stake in your business.

For the 5 Most Fascinating Stories in Franchising, a weekly report, click here & sign up.

It's that time of year again. Everyone's busy, stressed out and short of time. It can be easy to forget to thank folks. It shouldn't be. However, sadly, it is.

We can usually remember to thank our customers. And we probably don't have any trouble thanking family. However there is a group of folks that are often left out of the "thank you" pile.

And that would be our co-workers. The folks we spend most of the day with side-by-side. In the spirit of the holidays, we at Telephone Doctor, dedicate this column to our inside customers. The folks that are thought of as our 'home away from home' family. Sure, we argue and disagree with co-workers just like our family. And that's OK, because most of us have a family environment in our office. We understand that. It's our office family.　

With this in mind, our column goes to our co-workers, our internal customers, this month.

1. Understand Your Role - Each employee should know the mission of their organization and the role they play. Those of us who are in a small department of a large company can often times miss the big picture. If you don't know the mission of your company, ask for it. Keep it at your desk. It will help you with the big picture. You may start to understand the 'why' of the things you're asked to do sometimes and 'why' internal customer service is everyone's responsibility from president to maintenance. If management isn't doing their part, often times the entire customer service program will go out the window. We don't want double standards. Remember it starts at the top!　

2. Respect Employee Differences - Cub fan? Cardinal fan? Republican? Democrat? Rock music, classical, whatever. Just because we don't agree with someone doesn't make us right. Differences are crucial for an organization. Differences are key to understanding people. If everyone thought the same way, most of us wouldn't be needed. It's not healthy to argue just because a co-worker isn't doing it the way you would or thinking the way you do. Learn to respect the differences. That's why we have chocolate and vanilla ice cream.　

3. Recognize the Personal Space of Others - Simply put, this boils down to the golden rule. Those who can work with a radio playing music may disturb others around them who aren't able to concentrate. Loud voices around someone who's on the phone with an external customer can be annoying also. If you're working in a cubical or sharing an office or area, we need to recognize there are others around you. Be sensitive to their wishes, as you would hope they would be to yours.　

4. Work to Resolve Conflicts - Who hasn't had unkind words with another employee? Or perhaps you and a co-worker strongly disagree on a project or idea. Not trying to make it work can only lead to more stress and frustration. Learn to work it out (notice I didn't say 'try' and work it out) even if you need to call in a professional in the area. Normally someone from HR or another trusted employee can usually be of help on conflict resolutions.　

5. Show Appreciation　- We saved this for last because being appreciated, showing you care with a genuine 'thank you". It can be a note, a phone call or just stopping by an office and letting someone know they did a great job. This makes a huge difference in our internal relationships. There are surveys upon surveys that show how much a genuine pat on the back of appreciation is thought of as a way of special compensation.

What the franchise world is saying about Nancy's annual conference programs:

Relevant • FUN • Entertaining • Engaging • Spontaneous • Real • Unforgettable

For a complimentary demo call 314.291.1012, email [email protected] or visit www.nancyfriedman.com.

Join these (and many more) successful franchise clients: Philly Pretzel, CarStar, Big O Tires, Minuteman Press International, NOVUS Glass

For the 5 Most Fascinating Stories in Franchising, a weekly report, click here & sign up.

"Listening is related to influence, such that those who are better listeners are more influential," says a 2012 Columbia Business School research study, LISTENING AND ORGANIZATIONAL INFLUENCE, CLICK HERE.

The study goes on to suggest that, "How well organizational members listen is positively associated with their tendencies to influence others, over and above how well they engage in expressive communications."

Listening is one of the most important, yet under developed skills, necessary for success in our personal and professional lives. However, if we're going to be honest, most of us take listening for granted and we aren't very good at it. Unfortunately, our schools don't recognize the significance of this reality. In addition, for those of you who are parents, when was the last time you thought your kids were listening to you, much less in school?

My friend and colleague, Executive Coach, Henry (Chip) Scholz, reminds me that Lee Iacocca, former CEO of Ford and Chrysler said more than thirty years ago that, "Business people need to listen at least as much as they talk. Too many people fail to realize that real communication goes in both directions."

Iacocca also said, "I only wish that I could find an institute that teaches people how to listen." The reality is that most schools don't offer classes nor teach listening skills.

Bernard T. Ferrari, dean of The Johns Hopkins University's Carey Business School and accomplished corporate strategist and management consultant to Fortune 50 companies, says in his book Power Listening: Mastering the Most Critical Business Skill of All, that, "

Power listening-the art of probing and challenging the information garnered from others to improve its quality and quantity--is the key to building a knowledge base that generates fresh insights." What's wrong with this picture?

Many years ago while working for AT&T in Michigan, I hired Dr. Lyman Steil, then Chairman of the communication department at University of Minnesota and currently Chairman & CEO, Communication Development, Inc & International Listening Leadership, to help us improve the listening skills of mid-level managers and above.

This three-day (required) class became part of the catalyst for measuring AT&T's customer satisfaction (from the customer's perspective), rather than an internally created metric. Ironically, what was once thought of as the holy grail of business, customer service, has been displaced in today's marketplace by the importance of the customer's experience.

Kathy Doering, President of Ann Michaels & Associates, Ltd., one of the most sophisticated mystery shopping organizations in the U.S., understands the benefits of listening, more than most.

She says, "Your front line employees are an often untapped source of innovative ideas and information on what customers think about doing business with you. Lead by example-show them the of value good listening skills. Mentor those who need help in this area and reinforce it, then, watch your business prosper."

In the article "Listening and interpersonal influence," in the Journal of Research in Personality (2012), Author(s): Daniel Ames, Joel Brockner & Lily Benjamin said that, "The gold standard of good listening is not measured by how quiet you are, it's about doing things to let the other person know that you are seriously considering what he has to say:

"We might also do well to remember that the most highly crafted presentation in the world is useless, if no one is listening.

For the 5 Most Fascinating Stories in Franchising, a weekly report, click here & sign up.

How to Qualify the Capital Intensive Candidate

Back in the 1990's, when "inbound marketing" was once again in fashion, I was working development for a large QSR brand.

Our prospective franchisees or candidates -we never referred to them as "leads"- called us on a land line. Sometimes, they would even fax us.

You must imagine this: A candidate needed to meet or exceed a net worth of $1 million to qualify for our development. I had to figure out whether they would qualify - over the phone.

Caller-id was no more revealing then than an email address is today. You could work for weeks with what turned out to be great candidate - except that they could not meet the financial qualifications.

What I learned, quickly enough, was to use a simple method to get people to truthfully reveal whether they were qualified or not. All over the telephone, using no other source of information.

The Secret Technique

I can reveal this method to you today - it still works.

You ask the on the phone - "Do you have a net worth that meets or exceeds our financial requirements?" at the exact right time in the sale process - after they have raised their hands and asked to go forward. People will truthfully reveal their financial qualifications - if your sales process is thoughtful.

(We actually had a terrific candidate who wasn't financially qualified. But we were able to match his talent with other capital - another story for another time. He is now a very successful multi-unit franchisee and a highly respected franchisee leader.)

The secret technique was waiting for, what my business partner Michael Webster calls, the Signal of Commitment. Only after I heard the right signals, could I ask for and get a truthful revelation of their financial qualifications.

Why Websites Don't Work

Contrast our ability to listen to a real human asking real questions about the business opportunity to what we ask for on websites.

Here is a representative application to a capital intensive franchise.

You have already asked the candidate whether they were qualified - using a form on the internet!

How many worthless inquiries is this going to produce? Too many - but too few leads.

Your application process lacks grace.

You don't get the deal done with someone who is only committed to filling out a form on a website.

Summary

No, the only way to do capital intensive franchising is using old fashion technology - listening, waiting the signal and then asking for the commitment.

If you liked this, you will really like: Using LinkedIn to Sell Franchises -a Course from Franchise-Info (A no cost course with 13 lectures delivered to you directly by email)

Why You Have Bad Customers

Bad customers are everywhere. Showing up with coupons, but no cash. Wanting written estimates so they can price shop elsewhere. Bad customers make "frugal" a four letter word.

Even loyal and good customers are behaving badly -- how did it get so bad? Is it just this economy or has something else gone wrong?

Imagine that you sell and install "parts". You could sell auto parts, or you could sell specialized advice based on standard legal documents as an attorney or insurance broker.

Any business that has a specialized service component bundled with a standard good is a "parts" business. And most of us in North America and Europe are in this type of "parts" business.

Imagine your perfect "parts" customer. Call her "Maria". Why is Maria ideal? She is the perfect customer because;

• She showed up for her regular appointments;
• She accepted your service upgrades without hesitation, and;
• She didn't haggle over the price of "parts" and service.

was good. For you and Maria.

Now, however, the "parts" business is getting hard.

On one hand, there are after market stores which will sell "replacement parts", even specialized IP is not immune to being sold as a "part". With their large, or on demand inventory, they can undercut you on the price of a "part".

On the other hand, is the rise of the "do it yourself mechanic", an unregulated body of individuals mimicking specialized work. The DIY crowd can "install parts" cheaper than you, given the right diagnostic.

/

And now, Maria is getting wise. She shows up, more often than not, asking only for a written diagnosis of her problem. Or she wants you to install "parts" she has bought from a competitor.

Maria has become a bottom feeder. Soon, you will only see her when, in desperation, you put out another ill conceived marketing offer - buy one and get one free, or a BOGO.

You don't want to turn down business. But, you would like to fire Maria. Except, so many of your customers are starting to look a lot like Maria.

One response is tempting. You can raise prices and drive out the bottom feeders. This response risks alienating your good customers - turning them into "Marias". You cannot afford that solution.

What do you do with a problem like Maria?

What You Need is a A Bad Customer Detector

No, what you want is a permanent or real solution- a Maria detector if you will.

Your strategic problem is this. You are being asked to give away confidential information - a diagnostic scan, a specialized legal opinion or insurance solution- to a user that is not yet committed as a customer.The user may thank-you for your valuable information and take it without paying.

You may respond by charging something for this confidential information. And, this may work for a short period of time -but it may also turn more of your loyal customers into price conscious shoppers - on the slippery slope to being a Maria.

So, what you need is a way to detect Bad Customers.

How Would This Work? Create A Specialized Bad Customer Training Exercise

If you knew a user was going to turn out to be a Maria, your staff could gently turn her request for confidential information down. Staff would explain that it is policy to only give away confidential information to proven and loyal customers.

How could you get a Bad Customer detector? How could you train your staff to play "Spot the Maria Game"- staff that were top notch Maria detectors? How much would you be willing to pay get train your staff with the Bad Customer detector?

(The "Spot the Maria" is a fairly simple variant of a well known negotiation training exercise. The logic of this strategy can be found by googling "deterrence" or "sub-perfect Nash equilibrium". But, you don't need to know why this games has attracted the attention of theorists; you just need to know that there is training exercise, which could be customized for your unique problem.)

Who Also Uses Negotiation Role Playing?

, there are cheaper solutions - the custom solution should prove to expensive. There are many excellent providers of standard negotiation training exercises. Most of these providers or their affiliates can address standard negotiation exercises and provide training that sticks to your staff.

Two top notch Universities are: Northwestern's Kellogg School of Management Dispute Resolution Research Center, and Harvard's Program on Negotiation, each which provide standard negotiation exercises, which you can review on line for free. Each has its own Linkedin Group, DRRC Linkedin Group, and PON Linkedin Group.

DRR and PON have free newsletters, seminars and useful resources. They also have for profit training seminars.

Here is a partial list of the DRCC and PON testimonials:

Did you like this? Why not click here and subscribe to Webster's Strategic Stories.

Yes, our Telephone Doctor customer service and communication training covers this as well.

This subject gets covered a lot; however, we want to reiterate some key points on both email and live chat.

Points that will make life easier for those who use these methods of communication.

Live Chat

If your company is using live chat online, here are a few tips that will help you and the person on the other end.

A Telephone Doctor survey shows a live chat conversation will end up in a phone call nearly 50% of the time. What does that say to you? Well, it says to me, the conversation didn't go the right way. More help was needed. That's because the written word can often be mistaken for something it wasn't meant to be.

That being said, as many of you recall, Telephone Doctor started out as experts in telephone skills. As the other touch points of communication came along, we fine tuned our tips, skills, and techniques to help email, voice mail, snail mail, fax and face-to-face. (Texting is left out for now, because it's not in the mainstream just yet. Certainly there may be clients who prefer a text, but in the office/business world it's not "there" quite yet.)

Back to the live chat line. For those not familiar with live chat, simply put, it's servicing and communicating with customers, one-on-one, via a web-based site online. It's email in real time. In reading some of the printed live chats from clients and customers it was very clear to me, the biggest problem was: the personality is missing.

It appears the company person goes directly into a "robot mode." Yes. No. And a lot of one and two word answers. No smiley faces. Nothing that says, "Hey, I'm human" or "I care."

While we're not looking for answers that rival Gone with the Wind, we do know that three words make a sentence. We also know one word answers are considered rude and cold.

We found another BIG concern on live chat and email are the words many of us confuse day after day. Which is your albatross?

Here they are:

You're - Your

There - Their - They're

Grateful - Greatful

To - Too - Two

Hear - Here

Seamless - Seemless

Know - No - Now

Effect - Affect

When to use I vs. me

The list goes on and on. I'm about to give you the absolute best answer for never making these mistakes again. Ever!

WHEN IN DOUBT - LEAVE IT OUT!

If you're writing an email or doing live chat and aren't sure which 'word' is correct, use a totally different word.

Example. I found myself mixing up 'greatful' and "grateful'. As in: "It was a great party. Thank you" and "I am very grateful for this opportunity." So rather than worry if I used the right word or not, now I say, "It was a fabulous party. And I am so appreciative for this opportunity."

Remember, 'when in doubt, leave it out.' While we often don't think others will mind these errors, they do. They wonder about our credibility; our intelligence; our thoughtfulness.

If you're using live chat, think of the person you're communicating with as sitting right across the desk from you and talk with them. Not down to them.

Email

Do you know the top 5 email frustrations? Here they are:

1. Poor spelling and grammar

2. Unrelated subject lines

3. Forwarding unrelated messages (Ouch that can be bad!)

4. All caps. (It's OK when you're excited in a positive way; not necessary other times.)

5. Reply to all when not necessary and

5A. Messages that are way too long

We are all aware we could probably name five more offenses and frustrations. However, these top five keep coming up to the top time and time again. We believe they are the best of the worst. Keep them in mind as you email.

Ok, I promised this wouldn't be a long article. Hope you enjoyed. Love to hear from you on this or any topic you'd like to hear about.

# # #

Reprinted with permission of Telephone Doctor Customer Service Training. Nancy Friedman is a featured speaker at franchise, association & corporate meetings. She has appeared on OPRAH, Today Show, CNN, FOX News, Good Morning America, CBS This Morning & many others. For more information, call 314-291-1012 or visit www.nancyfriedman.com.

For the 5 Most Fascinating Stories in Franchising, a weekly report, click here & sign up.

Most business owners know that customers will walk - take their business elsewhere if they're not treated as they'd like to be. But how does a business owner find out what the customer really likes or dislikes?

Well, as the Telephone Doctor, your customers have told us what they won't tell you. Here are TEN things only your best friend will tell you. (By the way, that would be us...The Telephone Doctor.)

Dear Telephone Doctor -

I'm not a person to be confrontational and cause a scene. However, there are several things that bother me when I call or walk into an establishment. If you pass this on to management, it couldn't hurt and probably would help. Thank you.

Dear Owner/Manager:

1. Nobody greeted me when I walked into your store. No one said, "Hello," no one asked if they could help me, and no one said goodbye when I walked out. Well, at least I wasn't any trouble.
2. Your sales staff looked tired. Yea, they did. Otherwise why wouldn't they greet me with a big smile and some enthusiasm? It didn't look like they even wanted me in the place.
3. I bought a lot of stuff. I couldn't believe no one said, "Thank you." No one told me to enjoy my purchase. I did get a luke warm "Have a nice day." But it was said so routinely, it didn't mean anything to me.
4. When I phoned for some information, my call was treated as an annoyance. I sensed very little desire to be of any real help. Know what I did then? I called a few more places until I found one who sounded as though they wanted my order.
5. Whoever answered your phone never identified themselves. I happen to like to know who I'm talking with and when I don't, it hurts any trust I might give your company.
6. During the phone call, the voice of whoever answered sounded aggressive and challenging. I didn't feel very welcomed.
7. When I walked in, all your employees were talking and laughing amongst themselves and ignored me until I asked a question.
8. There was no management around. Remember the old saying "when the boss is away, the mice will play." Guess what? They do!
9. When I told your staff about my problem, which was important to me, no one sympathized with me. It was 'business as usual' for them.
10. Everyone looked angry. No one was smiling. Remember, sometimes it's the things you 'don't do' that make me want to go elsewhere.

# # #

Reprinted with permission of Telephone Doctor Customer Service Training. Nancy Friedman is a featured speaker at franchise, association & corporate meetings. She has appeared on OPRAH, Today Show, CNN, FOX News, Good Morning America, CBS This Morning & many others. For more information, call 314-291-1012 or visit www.nancyfriedman.com.

For the 5 Most Fascinating Stories in Franchising, a weekly report, click here & sign up.

The other night I had dinner at a favorite restaurant. Unfortunately, a bad customer service experience tainted the evening. The good news is that this event created a learning opportunity.

By the way, you don't have to be in the restaurant business to appreciate and learn from this story. As I take you through the story and the lessons we can take away from it, think about how they apply to your business.

On that evening I ordered the pasta dish that I've been ordering for years. It came out wrong. It had peas in it. Not just a few peas, but loaded with peas.

And I hate peas.

I picked up the menu and confirmed that I hadn't misread the description. Nowhere did it say peas. I motioned the server over and told her about the problem.

She had a great attitude and was happily going to take care of the situation.

But, just about then, the manager who had been observing, stepped in. I had never seen this manager before. He didn't apologize, and instead told me that they have two chefs and that this one likes to put peas in the pasta dishes. He said that most people find that the peas are a pleasant surprise.

Ah, that explains it. A pleasant surprise - not for me! And I nicely told him so. He just stared at me. I could tell how uncomfortable the server was at this interaction. She wanted to do something, but the manger had taken over, and he was blowing it.

Eventually, the manger asked if I would like to get a different pasta entree. I asked if they could make the same dish without the peas, as was on the menu. He finally took the dish away.

Several lessons come out of this incident:

1. The server was handling things just fine. The manger got in the way of her taking care of me.
2. The manager didn't respond with the same enthusiastic attitude of taking care of me, the way the server did. He didn't even apologize. Managers should set examples - good examples.
3. The manager should have immediately taken the dish away. If you can get a problem out of the customer's sight, do it quickly. Once the dish has been taken away, then launch into recovery mode.
4. The manager made an excuse rather than give an explanation. There is a fine line between excuses and explanations. An explanation comes with an apology and doesn't come across as defensive or aggressive.
5. The manager wasn't listening to me. Why would he call the peas a pleasant surprise when he knew I didn't want them in the pasta? Because, he was defending the decision of his chef to change the ingredients. (Read that as changing a process if you aren't in the restaurant business.)
6. Finally, the incident broke the consistency of prior experiences, which now leads to a lack of confidence. The next time I order this pasta dish I'm going to have to ask if it has peas, because you never know who's cooking in the back. Will it be the chef that likes to "pleasantly surprise" people with ingredients that aren't listed on the menu or the chef that follows the recipes I love - the ones that make me want to come back again and again.

The restaurant is great, and I'm going back, because I know this is an isolated incident. But, what if this was my first or second time at this restaurant? Given all of the good places there are to eat, would I want to spend my hard-earned money at a restaurant, or with any type of business, that makes mistakes?

My friend Tom Baldwin, former CEO of Morton's Steakhouse says, "Great service is mistakes handled well." That's great advice for any business.

Shep Hyken is a customer service expert, professional speaker and New York Times bestselling business author. For information contact (314) 692-2200 or http://www.hyken.com.

For information on The Customer Focus™ customer service training programs go to http://www.thecustomerfocus.com. Follow on Twitter: @Hyken

(Copyright ©MMXII, Shep Hyken)

For the 5 Most Fascinating Stories in Franchising, a weekly report, click here & sign up.

Language underlies almost all other components of the customer experience. Yet, your company has probably given more thought to the language it uses in marketing campaigns than to the words employees use when having conversations face-to-face with customers.

That's a mistake, because customers don't generally get their make-or-break impressions of your company from high-minded branding exercises. They get them primarily from day-to-day conversations with you. And those are the impressions they spread to others.

If you haven't given much thought to selecting your company language--what your staff, signage, emails, voicemails, and web-based autoresponders should say, and should never say, to customers--it's time to do it now.

No brand is complete until a brand-appropriate style of speaking with customers is in place at all levels of the enterprise.

Which is why, whether I'm consulting with a law firm on building a client service initiative, speaking to a hospitality audience on building guest loyalty, or assisting a hospital in improving customer service for its patients, one of the first pieces of work I suggest we do together is focus on achieving a consistent style of service speech.

Develop a language lexicon.

A distinctive and consistent companywide style of service speech won't happen on its own. You'll need social engineering: that is, systematic training of employees.

Imagine, for example, that you've selected ten promising salespeople for your new high-end jewelry boutique.

You've provided them with uniforms and stylish haircuts and encouraged them to become your own brand's versions of a Mr. or Ms. Cartier, starting on opening day.

But they'll still speak with customers much the way they speak in their own homes: that is, until you've trained them in a different language style.

Happily, ''engineering'' a company-wide style of speech can be a positive, collaborative experience. If you approach this correctly, you won't need to put a gag on anybody or twist any arms.

Once everybody in an organization understands the reasons for language guidelines, it becomes a challenge, not a hindrance. The improved customer reactions and collaborative pride of mission are rewarding. As a consequence, it can be a relatively easy sell companywide.

What should be in your language lexicon?

Here, for example, are some good/bad language choices:

Bad: ''You owe . . .''
Good: ''Our records show a balance of . . .''

Bad: ''You need to . . .'' (This makes some customers think: ''I don't
need to do jack, buddy--I'm your customer!'')
Good: ''We find it usually works best when . . .''

Bad: ''Please hold.''
Good: ''May I briefly place you on hold?'' (and then actually listen
to the caller's answer)

The specifics of the lexicon you develop will vary depending on industry, clientele, and location. A cheerful ''No worries!'' sounds fine coming from the clerk at a Bose audio store in Portland (an informal business in an informal town) but bizarre if spoken by the concierge at the Four Seasons in Milan.

An alternative approach:

If this ''Say This While Avoiding That'' approach strikes you as too prescriptive
(or too much work), if you don't want to develop scripted phrases and specific
word choices for your employees, at least consider developing a brief ''Negative Lexicon.'' A Negative Lexicon is just a list of crucial language Thou Shalt Nots.

The Negative Lexicon is the Danny Meyer approach, the one used by that great New York restaurateur and master of hospitality. Meyer feels uncomfortable giving his staff a list of what to say, but he doesn't hesitate to specifically ban phrases that grate on his ears (''Are we still working on the lamb?'').

A Negative Lexicon can be kept short, sweet, and easy to learn. Of course, new problematic words and phrases are sure to crop up as time moves on.

Ideally, you'll update your Negative Lexicon as frequently as Wired magazine updates its ''Jargon Watch'' column.

P.S. For more on language engineering, learn about the Five Words You Can Never Say To A Customer

For the 5 Most Fascinating Stories in Franchising, a weekly report, click here & sign up.

All rights reserved, expressly overriding the creative commons license.

"Would you like fries with that?" is a phrase you've probably heard a million times over. Once upon a time, that was considered the easiest, most effective cross selling opportunity.

Times have changed - menu offerings have expanded, and customers have become more health and money conscious. Cross selling and upselling opportunities have evolved, and training employees to handle this effectively can mean a world of difference in your bottom line.

Cross selling and upselling doesn't come naturally to some people, but if done in the right manner, it can become a comfortable process for staff.

Below are some tips to use when training staff to consistently upsell and cross sell to customers.

Don't do it for the sake of doing it: incorporating a standard cross sell to a cashier's order taking process won't work - it will sound mechanical instead of helpful.

Telling an employee to always ask, "Would you like fries with that?" no matter what the order will turn people off. Offering additional items or larger sizes in an attempt to meet the customer's needs will be way more effective in encouraging additional sales.

Value selling- make the customer see the value in a cross sell item, while letting them know their business is appreciated. Panera Bread does a great job with this.

When a customer orders a meal, the employee lets them know that because they did so, they are eligible to purchase any bakery item in the case for only $.99. It gets the customer thinking about dessert and looking at the bakery case.

Say it with pictures- a picture says a thousand words. Make sure you have visually appealing signage that is prominent on the menu board or at the speaker at the drive thru of high profit items.

People are drawn to visuals, and may be more likely to purchase these items, especially when the drive-thru employee starts off the conversation by asking if they'd like to try the promotional item.

If value meals show a high profit margin, feature images of value meals prominently - psychologically, the customer will perceive this as the item to order, even if that was not what they originally intended to purchase.

Show the savings- one way to resurrect the "would you like fries with that" mantra is to explain why you're suggesting that.

If a customer orders a sandwich and beverage, the cashier can easily say, "if you'd like to add a side to that, it's only an additional $.99 and you'll save $1.25 if you purchase it as a meal."

Be specific and enthusiastic- Instead of asking, "Would you like a drink with that?" offer specific beverages as suggestions. It could sound something like, "If you'd like to add a drink to your order, we have a great new Smoothie - you can choose Strawberry, Raspberry, or a Hawaiian blend.

I tried one and they are really good! They're on special for only $1.99 with any order."

Psychological upsell- this is a unique opportunity that can work wonders with upselling. When customers are placing orders for items that have more than one size, but they don't specify a size, training your employees to confidently suggest the larger size by saying, "That will be the eight piece order of mozzarella sticks, right?" while nodding their head in confirmation.

This can encourage a larger purchase, even if the customer only intended on purchasing the four piece order.

Know the menu- Employees need to listen to the customer orders and make their suggestions based on that, not what is "easy" to suggest.

You don't want to suggest a triple chocolate brownie pie to someone who just ordered a low calorie salad. Instead, focus on other healthy, low calorie items as a suggestion.

Indecision can increase sales- if a customer is unsure of what to order, this is a great opportunity! Teach employees which items or combination of items yield the highest profit margin so they can suggest those to the undecided customer. If customers are unsure what to order, they will often times take the employee's suggestions.

They are usually pressed for time and don't want to hold up the line by reading the entire menu board.

While the value of these additional sales is a known fact, seeing the actual impact can drive home the point even more of why this is so important.

Consistency is key. No matter which of the methods above are used, an attempt to either upsell or cross sell should be done during each and every transaction. If you're thinking that your employees do this all the time, just because you've trained them over and over on this matter, you may be surprised.

With many of our mystery shopping clients, including those in this industry, they are often times very surprised to find that the question on their mystery shopping program pertaining to this issue is only answered "yes" at 50% of the time!

Train your staff, remind often, and reward when effective techniques are used.

The tips are rather subtle methods to use so that it doesn't seem like a sales pitch. It will also give value to your customer's visit - they will feel as though the employee wants them to have the best experience possible.

This may not only lead to increased revenue, but customer retention and repeat business.

For the 5 Most Fascinating Stories in Franchising, a weekly report, click here & sign up.

We run a pretty good sales team at Telephone Doctor. Several team members have been with us over 15 - 20 years. One even longer. Some have left after 3 weeks. My guess is those that have left, left due to one of these 'reasons.' Actually it's not a guess. One of these reasons is definitely why they left.

Like all lists, it's not final. There are other reasons, however, I believe you'll agree this is a good start. Share with your sales team.

1. 1. They don't practice their skills
   2. They're not flexible
   3. They're not a team player
   4. They don't use their sense of humor
   5. They don't use their imagination
   6. They don't listen to management
   7. They make no effort
   8. They get too comfortable, too fast
   9. They interrupt too often
   10. They don't ask enough open-ended questions
   11. They make too many assumptions
   12. They're not sales minded in all areas
   13. They're not able to handle corrective criticism
   14. They don't have enough enthusiasm
   15. They have poor time management skills
   16. They don't use their Saturday night personality during the week
   17. They don't have a "Whatever It Takes" mentality
   18. They lose their focus
   19. They're not able to deal with personality conflicts
   20. They don't truly believe in their product
   21. They don't understand rapport building
   22. They don't understand ongoing customer service
   23. They have too many unqualified leads
   24. They lack confidence
   25. They don't have long-term commitments
   26. They're short sighted
   27. Honesty is a problem for them
   28. They don't do any self-improvement
   29. They refuse to follow scripts - even loosely
   30. They don't understand this list
   31. Wanna add your own?

Could this be YOUR franchise?

Common scenario: Franchisees phone rings with a potential customer. The caller is put on hold (often curtly). Or it rings too long. The caller waits five seconds, hangs up. No sale. No second chance.

Uncommon solution: The Customer Service Expert: Nancy Friedman, speaker, Telephone Doctor Customer Service Training. Rapport building, retention and engagement a specialty.

I shoot down bad habits and punch holes - using humor - in the mistakes we all make in customer service and sales offering the positive alternatives to be used immediately and forever.

Results? ROI, increased customer service, more sales.

A 2015 IFA annual conference attendee said: "WOW! Exceptional does not even begin to cover how magnificent (Nancy's) presentation was. Funny, engaging, insightful, helpful, and downright phenomenal! Nancy's session was worth the trip & conference alone!"

Call me personally for more information.

Nancy Friedman | President | Speaker
Telephone Doctor Customer Service Training

314-291-1210
www.nancyfriedman.com

Franchisors want more ready-to-buy franchise leads.

It's the "prime directive" and goal of franchise sales departments across franchising to generate ready-to-buy leads.

Problem is this goal too often misses the mark and the lead sources generate unqualified leads that are rejected because they are not ready-to-buy ever or the buyer needs time to get educated and become informed about franchising.

The way franchise sellers address this today is by sending these not ready-to-buy leads emails which are pretty much different versions of the same tired message:

Buy My Franchise, now.

Sign up to any franchisor's lead gen program on a web portal and see what I mean.

It is begging and looks desperate.

These potential buyers need more than the same pitch regurgitated over and over again.

Not to mention that it chews up a lot of sales team time even with automated email campaigns franchise sellers are still trying to get these people on the telephone.

Franchising is a complex sale.

It's recruitment selling. Savvy franchise sellers know they are competing for the best talent and capital. And the not ready-to-buyer's qualifications are a mystery since they are not interested enough to talk with you and reveal their confidential information.

So what does a franchise seller do about these not ready-to-buy leads?

You nurture them by sending them information about franchising in general that you know they need & ask them to do something. Content marketing.

Here's why this will work -

1. Content marketing is a perfect fit for complex franchise selling. It helps not ready-to-buy leads to establish a franchising frame of reference.

2. Qualified not ready-to-buy leads are still trying to figure out how a franchise solution solves their problem & your content helps them see themselves as an owner.

3. By providing important & educational franchise content to the leads in your nurturing program you educate them and get to influence the franchise narrative.

4. As you educate these leads over time they begin see how your franchise fits in their life and business portfolio. They qualify themselves.

5. Nurturing builds the trust the prospect needs in order for you to get the all important exclusive conversation at the top of your franchise sales funnel.

Remember the people you can't get on the phone with, won't fill out your application, ignore all your messaging are not bad leads there just not ready.

You can and should nurture them.

If you liked this, you will really like: Using LinkedIn to Sell Franchises -a Course from Franchise-Info (A no cost course with 13 lectures delivered to you directly by email)

Auto repair dealers are held to a higher standard than doctors. And it effects customer service.

Make an appointment with your doctor for 10am. Show up, wait until 10:30 to be seen by a nurse. 10 minutes with her, wait another 10 minutes for the doctor. He tells you your knee pain is nothing serious, take some Tylenol. Two weeks later, no improvement. Make another appointment, go through same delays, doctor says let's run test, finds torn ligament, refers you to orthopedist.

How different from our automotive world!

In our world, the customer will complain if we are one minute past their appointment and their car is not in the bay. On the second visit, they would demand to be seen without an appointment, demand a refund for the first visit, and also insist the second visit be free!

Next, they would tell the doctor that they have a bump on their head that wasn't there before, so it must have been caused by the knee examination.

I wish I had a dime for every time a client withheld pertinent information about the symptoms of their vehicle--any problems with your brakes? No. Get in the car, pedal to the floor brake and abs lights on.

The disregard for the repair facility is startling. I have people double park in front of my center walk in, sneer and say "oil change". Would you do that in a restaurant? "Steak!"

Or they show up at 3:00pm on a Saturday with a serious engine performance issue needing to leave town on vacation Sunday morning first thing.

How long have you had this problem? Oh, a couple of months.

Then they are mad at you because you can't perform a miracle.

There really should be a manual for car repair customers--here are my four suggestions, feel free to add on.

1. Leave your car--be forthright and polite in describing your problem or need--have patience--don't expect miracles--understand that it is an "estimate" and is subject to change if other issues are discovered--

2. Don't show up right before closing expecting service--don't assume that just because a facility serviced your vehicle today, they are responsible for any and all issues you may develop until your next visit.

3. Don't bring your own parts--don't diagnose your own car--don't tell me after I diagnose your car that you have decided to take it to "your mechanic" or worse yet, your brother who knows about cars.

4. Don't presume I am dishonest or incompetent because you previously dealt with a dishonest or incompetent shop.

I could go on, buy you get the point. I am blessed because in 27 years at my location, I have developed relationships and gently "trained" many clients in the art of being a good customer.

In return, they get every benefit of the doubt I can provide when servicing their automobiles.

How would your conversion rate and profitability change if you could implement a method to develop a prospect's confidence about the value of your offering earlier in the sales process?

Wouldn't it also be valuable at the same time to learn what would change your prospect's mind about deciding to buy from you?

Questions are a great way for you to become the problem solver your buyer will want to do business with.

Questions are strong tools for helping your potential buyers see the value of doing business with you, and to get them to tell you what factors must be mitigated before they write a check.

"What do you need us to accomplish for you to consider our work with you a true success?" is a good question for uncovering real reasons they are exploring the value of your service.

"Is there anything else that would need to be in place for you to decide to move ahead?" is an appropriate question if you want to understand the risks the buyer sees in going forward with you.

Under the traditional sales model, you don't get to your prospects' objections until after you try to close the sale. At that point, it's often too late, and you may have labeled yourself as a product pusher.

By asking questions up front you create trust, engage respectfully, and deal with objections early on. You've now established yourself as a problem solver, making closing easier.

What powerful questions do you ask to educate your buyers about the value you provide, or to help them overcome their resistance to buying from you?

For the 5 Most Fascinating Stories in Franchising, a weekly report, click here & sign up.

Here are 5 tips for selling a business, a handy business valuation tool.

The impetus to sell your franchise business can come from any number of directions and at any time.

The market could change, someone could pass away, an unsolicited franchise might offer to buy you, or the founders might simply get bored and want to do something different than remain in the franchise business.

Whatever the reason, selling a business is a big step that should not be taken lightly. Nevertheless, when it is time to sell your franchise, you want to be clear on your motivations, and have a business valuation which supports the price you want for the franchise business.

It's Valuable to Be On Top

Selling a business in a hot market is always better than the other way around. People want to associate with winners. If your franchise business is on a winning streak, people will be more likely to pay more for it.

Should financial markets determine whether you should be selling a business? Probably not.

However, if you are going to be selling a business, you are better served by selling while both the market and your franchise business are in their best shape.

Determining when your franchise business is performing at its peak is often a job for a fortuneteller, but you can do some simple trend analysis to see where you stand, part of more detailed business valuation.

Your Relative Market Standing

Here are the 5 business valuation tips you can perform to see where you stand with respect to the rest of your market, in particular, and the overall market, in general:

1. Has your franchise shown a profit for the last five fiscal quarters? If so, you are immediately a viable financial investment.
2. Are your historical net-income-before-tax results increasing over the prior five quarters, or are they erratic in nature? Financial markets like consistency, and the more consistent the income figures the better your franchise looks.
3. Has your franchise been gaining market share with respect to other franchisees in your industry? If so, you look even better. If not but your income continues to grow, it means the management is doing something right with respect to operations.
4. Has your franchisor recently added new products, services or other features with hot market potential? If so, selling now while the iron is hot may not be a bad idea.
5. Is your franchise located in a growing market that is showing above-average increase in potential customers? If so, then you might want to sell your franchise even if some other financial parameters are not in optimal condition. Remember that when selling your franchise, you are competing with other investment opportunities. If other investments are not performing as well as your franchise, your franchise could represent a solid investment.

Any one of these reasons, along with numerous others, might be reason to assume that your franchise is on a solid upswing. A combination of several reasons makes the business valuation case even stronger.

The point is that you must do some market research for yourself to determine the performance of your franchise with respect to the others in the industry to get your price.

For the 5 Most Fascinating Stories in Franchising, a weekly report, click here & sign up.

Now before you answer . . .

· It didn't happen over night.

· It didn't happen without a lot of work and effort.

· And it didn't happen by accident.

Their plan was to sell the business

In fact, when Rich and Sonja Heaton of South Carolina decided to invest $150,000 into a small-town sign-making franchise in 2001, they did it with the idea of eventually selling the business for big bucks.

"People don't seem to set up their businesses to re-sell them," explains Sonja, "but that was our purpose for going into business, and for buying a franchise."

The lesson of the franchise resale

Many people don't think about the resale value of franchises. And many would-be franchisees don't think about buying an existing franchise instead of building one from scratch. But today, the Heatons can teach you about these lessons, as well as others related to buying, building and selling a franchise.

After operating (but not owning) a jewelry store and a convenience store, the Heatons decided to look at franchises. And even though they had no experience in the sign-making business, that's what they decided to buy.

What would attract a buyer?

"It didn't matter what we bought," explains Rich. "It could have been a waffle house, or whatever. We wanted to be the best we could be, and we knew that if we maintained our profitability, owned our own facility, and we developed the brand, we knew that combination would eventually attract a buyer."

Oddly, it wasn't easy to find a sign making franchisor that was interested in a small town location (population <9,000). Eventually, the Heatons discovered Signarama, based in West Palm Beach, FL. "Their franchise system, and their support, is unbelievable," says Sonja. "I tell people all the time that I would go back and open another Signarama versus doing it on our own because they nurtured and supported us all these years."

Aligning with a strong brand

All these years amounted to 14 before the Heatons decided to sell their business and . . . well, look for another one! ? "It's smart to align with a strong brand," says Rich, and that's why the Heatons believe they will eventually buy another franchise.

Will they start one from scratch, or buy an existing franchise? That remains to be seen, but they are sold on the wisdom of a resale.

For the 5 Most Fascinating Stories in Franchising, a weekly report, click here & sign up.

Recently a Telephone Doctor client said to me, "Nancy, congratulations. Some people take a simple idea and complicate it; you have taken a simple idea and kept it simple."

We don't believe you should scratch your head and wonder when you're being shown an idea or technique. That old KISS method (Keep it simple Simon) is the best. So we have purposely kept all of the material in our programs simple - yet very effective.

I've heard: "Hey what you do is just plain old common sense." You bet it is. You won't get an argument out of us. But you and I all know that common sense just isn't that common. If it were, everyone would be doing it and we know everyone isn't.

So, this article is for those that simply want basic, common sense, healthy, usable techniques. Below are 5 of our 10 basic skills that are ESSENTIAL for better communications and handling of customers and, believe it or not, each other.

1. Answering a Business Call

Well, what's so difficult about that? HUH? Right! It's not difficult. But if I called 100 people within your own organization, I'm betting I'd get a number of various ways that people answer the phone.

At Telephone Doctor we believe there should be one, uniformed method of greeting to answer the call by everyone, every time. Simple. To start, use buffer words that welcome the caller, such as, "Thanks for calling," then your company name and then your name. As in, "This is Sue." Then stop!

Anything after your name erases you name. "How can I help you" is simply NOT necessary on that initial greeting. You are there to help. That's why you answered the phone. It looks like this: "Thanks for calling Telephone Doctor's office. This is Nancy." Nice and simple, isn't it?

2. Thanking a Caller for Holding

Being put on hold remains one of the top 3 frustrations of the American public. That being said, it's something that often needs to be done during a phone call. Knowing how to put someone on hold is certainly important, but then so is thanking them for holding after you've come back to the phone.

Again, simple. But how often is it done.

I'm amazed at the number of times I'm put on hold and when the person comes back to the phone, they just start back in on the conversation like they weren't even gone. (Sort of like stepping on someone's toes and not says 'excuse me.')

And normally they're gone longer than they should be. So that "thank you for holding" sure would sound nice and would sure be appreciated. I always wonder why they don't thank me for taking the time to stay with them. Do you wonder that as well?

3. Monogramming the Call

For whatever reason, we all seem to like our name. Maybe not when we're children, but as we grow, we become used to our name and like it. I have many items on my desk and at home that have my name engraved on them. Some just initials. But it makes them 'mine' and I'd probably never pitch them in a cleaning out process.

Why? Because they have my name on it. Most people save things with their name or initials on them. Same thing should happen on a phone call. When you know the caller's name, use it. Don't abuse it, but do include it throughout the conversation. Most people like to hear their name. And they want to hear it pronounced properly and spelled right.

Don't be afraid to ask the caller the correct pronunciation of their name if you're not sure. They'll appreciate it! It's a heck of a lot better than you butchering their name. Don't assume on the spelling of a name.

ASK! Are you aware there are 19 different ways to spell the last name of NICHOLS in the New York phone directory? Not everyone spells their name the same way. Tom, Thom, Christy, Kristy, Charlie, Charley, John, Jon, Lynn, Lynne. Well, you get the idea. GET IT RIGHT!

4. Avoiding Mouth Noises

The telephone is a microphone. When you talk with something in your mouth, it sounds as though you have a mouthful of MUSH. Be it gum, candy or just finishing lunch. The only thing that should be in our mouth when you're on the phone is your tongue. Empty your mouth before you pick up the phone.

5. Leaving a Positive LAST Impression

Most of us have been taught about making that great first impression. And yes, that's so very important. That old saying, 'you don't get a second chance to make a great first impression' is so true. Well, consider making a great last impression as well.

Don't screw it up at the end of the call. Let the caller know, "It was nice to meet you by phone" or "thank you for calling" or "we appreciate your call." Something that will make that lasting positive impression, because when they hang up, they think to themselves either: Wow that was a great call. Or man, I'll never call there again.

How do you want your callers to remember you?

For the 5 Most Fascinating Stories in Franchising, a weekly report, click here & sign up.

Emotional Leakage - Getting at Mad at Peter and Taking it Out on Paul. Not right, not fair, not fun.

We've all seen it happen.

A co-worker comes into work storming angry; mouth turned down in a frown; walks through the office without saying hello to anyone; sits down at his desk and starts barking orders to his coworkers; doesn't come out of his office; and when his phone rings he picks it up and bellows out: "Yea?"

Sad isn't it? Something must have happened before he got to work and he carried it right inside the building. Telephone Doctor calls this "Emotional Leakage" and we cure it all the time.

Hey, it's no fun to get up on the wrong side of the bed in the morning. And it's sure not fun to get a flat tire on the way to work or to argue with someone before breakfast. It's unfortunate that some people aren't able to shake it off and move on about their business.

Emotional leakage is getting mad at Peter and taking it out on Paul. Not right, not fair, not fun. Taking a negative emotion out on someone who wasn't involved? How RUDE can you get?

If emotionally leaking on co-workers certainly isn't fair, then emotionally leaking on customers is even worse than not fair.

The customer or co-worker, in most cases, wasn't involved with whatever put you in a bad mood, so why take it out on them? Few things are more unfair and damaging to a relationship than emotional leaking a negative experience on someone who wasn't involved. And yet, unfortunately it happens every day. At home, in the office, on the streets, in the stores.

While shopping the other day, the person helping me was obviously not in a good mood at all. In fact, I think if she smiled her face would have cracked. She gave me one-word answers and usually none, she kept turning her head to see who was coming or going. (I wasn't sure.) She was throwing my vegetables and fruits into the bag - not caring how they landed.

Normally, I walk out on that type of service. It's just not worth my time to be treated like that. But this time, I was in a hurry and needed the product. So I did something I don't normally do...I asked her if everything was all right? Was she OK? I tried to make it sound as though I was interested (even though I wasn't.) But I sure didn't want her negative emotions leaking on me any longer.

With a big sigh, and a sad face, she told me she and her boyfriend had a big fight the night before and she was hoping he'd come by and apologize.

"Excuse me," I said, "was I with you?" Believe it or not she smiled and said, "Of course not." Then I nicely told her, "If I wasn't there, I don't want to be part of that argument."

She started to apologize, as well she should. Then I thought about a vase I had once. I dropped it. It broke into several pieces. My husband, Dick, and I talked about whether we should take it somewhere and have a professional put it back together. Dick said, "We can do that if you'd like, but it will never be the same. You'll always feel the cracks."

And so it is with our co-workers and customers. You can be in a bad mood...be it an argument, a flat tire or breaking your favorite item. And you can apologize, but people still remember how you treated them. How you made them feel. And they will - for a long time, too.

So how do we cure emotional leakage? It's a quick 4-step Telephone Doctor process.

1. Stop what you're doing.
2. Take a deep breath.
3. Put on a phony smile (yes, you can).
4. Regain your professional composure. And then talk with the person - in-person or on the phone.

Emotionally leaking on someone is NEVER right, NEVER fair and NEVER fun.

There are times others emotionally leak on us. Think how you feel when that happens to you and then remember to never emotionally leak on others.

Keep saying it...it's not right, it's not fair and it's not fun.

Thanks for reading and share away.

For the 5 Most Fascinating Stories in Franchising, a weekly report, click here & sign up.

Every franchise buyer wants to know how much money they can make. What are you going to tell them?

New franchisee recruitment & sales is very competitive with more franchise brand options available today than at any time in the history of franchising.

All of them are competing for your prospects.

Qualified franchise buyers might not be enthusiastic enough to buy your franchise, right now. You have to give them compelling evidence.

Here's how some franchise sellers succeed in selling in this recovering economy: using creative, imaginative, but magical communications to convert prospects to franchise buyers.

1. Partner with an industry or business publication. Give a stellar interview explaining the strength of your concept's unit level sales performance to the journalist. Of course have links to the articles on your website and send it out in your drip email campaigns.

2. Use social media chatting where you can explain the important key performance indicators on LinkedIn, Facebook, Twitter, Google+ forums.

3. Blogging is a terrific way to get the word out to potential buyers. Contract with blogger journalists for hire who will write success stories about your business model including key franchisee interviews.

4. An Investment ratio is a simple and common creative way for your prospects to do the simple calculation for gross revenue.

5. Direct your franchise candidates to your select high performing franchisees who will share their P&Ls with franchise candidates.

All of these tried and true franchise prospect "confidence builders" work very well since every franchise-buyer wants to know how much money they can make.

And you should use them only if you are willing to sell franchises both recklessly and carelessly.

So what should you do instead?

• Stop believing in magic.

• Make sure your franchise model Return-On-Invested-Cash - ROIC works for franchisees.

• Give the evidence your franchise concept is investment worthy by including a detailed Item 19 Financial Performance Representation - FPR in your Franchise Disclosure Document - FDD.

It's really that simple.

Franchise buyers demand business model performance evidence. Give it to them and you'll attract better qualified franchisees and sell more.

For the 5 Most Fascinating Stories in Franchising, a weekly report, click here & sign up.

For over 60 years we have thought of and configured franchise "concepts" as cookie cutter look alike replications - capitalizations upon so imprinting an image upon the public mind that instant brand recognition occurs in the mind of those with the least acuity among us.

Accordingly, we have now so devolved that the phenomenon of sameness has eroded the ticky tacky repetition of an inherently boring model to the point at which so many fight to sell ninety-nine cent Dupche Kapusta to every late night Dzebrak who still has a dollar in his pocket.

I believe that there is absolutely no economic reason on earth to invest upwards of a million dollars to sell the lowest common denominator products and services to the least able to afford anything customer base.

At that point one does not own a business in any real sense. I know that the 99 cent sandwich is not the raison d'etre of the QSR franchise industry, or of its equivalent in the services business, but it is in fact the focus of so much of its advertising message that it seems like it is. That is one of the surer signs of dilapidation of the brand.

At this point the entire ticky tacky approach should be rethought if the goal is to attract investors who are not themselves rather ignorant FranWad material to be fleeced in phantasy business proposals that have little or no likelihood of success. Anyone who follows the franchising horror stories today knows exactly what I am talking about with no need for further elaboration.

Yet there is no new approach on this horizon. So called franchising "concepts" that are not concepts at all in any real sense of economic opportunity abound.

They are sold to those who have no clue about pre investment due diligence who are told fairy tales about being able to rely on the FDD and conversations with existing franchisees as the way to satisfy themselves of the prospective soundness of an affirmative investment decision. Utter nonsense!

There are now affluent investors seeking real opportunities. Franchisors that are themselves serious about finding a more durable, less price sensitive proposition to sell should consider turning from the worn out pattern. There in another direction.

In my last article http://www.franchiseremedies.com/Selling-Investment-Worthy-Franchises.htm I described how to sell such an opportunity. Not I am going to suggest how that kind of opportunity should be configured.

Let's begin with recognition that the way customers find you is no longer focused so heavily upon signage, building configuration, color schemes and other visual references.

The Internet has made many profound changes in customer acquisition techniques.

So many go on line to find what they want, looking at sites that focus on what they want, from plumbers and electricians to dentists and places to dine.

That is the reference that enables what I am advocating here. The old mantra about putting a store within a mile of a McDonalds and making it look bright with a look that will quickly become an instant proclamation in a customers mind of your name - secondary meaning if you will - is not the reliable benchmark it used to be.

Today your store can look different at every location; comply with any sort of design theme; spend far less on interior brand identifiers like napkins with your name on them and things like that.

Today people are taught to go on line and find the directory where everyone who is in basically the same business as you is listed, together with focus aids like location (including maps), price range, ethnicity, hours of operation, special events, menus, wine lists, link to your website, and a special page for customers to blog their views about their customer experience with you - good and otherwise.

That is the ultimate game changer from the day when you had commercials about smiling brain dead people plastically endorsing you in terms only a moron would credit.

Illustratively, if you look today at a Liberty Mutual Insurance Company television advert you come away with the impression that Liberty Mutual only insures very stupid people who cut off tree limbs while their neighbor's car is parked beneath, without asking him to please move his car so he can safely cut off the limb.

Every one of their adverts has some similarly idiotic person doing something just as stupid.

In the world of television today, a Gecko is the smartest spokesperson there is. That kind of genre advertising focused upon less than room temperature target IQ customers will continue, but it has little to do with franchising going forward.

If the Internet focused website for even the semi literate to find everything they need or want is the reference point of the future - which I strongly believe it is - uniformity of logo display will quickly become less and less significant.

Franchising notions of the significance of uniformity are heading for the sewer in terms of usefulness.

The Internet is a qualitative informer. You will have to work on more substantive and really value significant messages other than price discounting.

You can no longer prevent unhappy customers from going to exactly where people look for businesses like yours and posting negative customer experience messages. Where does that leave you in your approach to franchising?

It leaves you to focus upon the individual store rather than the system of many stores. The individual store must provide an attractive look; excellent service; high levels of product/service quality and presentation; store ambience that is pleasing and appropriate.

It does not have to look like any of your other stores. You can now replicate the model without replicating the look, as the look is no longer a promise of desirability.

Model replication is now performance centric.

The performance quality just spoken of will yield financial performance quality with competent management and a competent management system.

Artificial requirements calculated primarily to generate extraneous revenue streams from franchisee to the pocket of the franchisor will still ruin store financial performance just as it now does with so many franchise concepts - think of the logo bearing napkins and tying in supplies entirely to designated suppliers that pay commissions to the franchisor on their sales to the franchisees.

(The temptation to abuse that to the point of franchisee ruination will still be there. There will still, therefore, be the Quiznos and Marble Slab Creamery models to personify franchisee impoverishment. But, that is another story.)

What is the marketing plan for this new franchise model? That is the message of http://www.franchiseremedies.com/Selling-Investment-Worthy-Franchises.htm . The franchising business is due for a major tune up. Hopefully this kind of upgrade in quality will be that adjustment.

For the 5 Most Fascinating Stories in Franchising, a weekly report, click here & sign up.

Customer feedback programs are effective tools to learn how your customers perceive your business and provide you with feedback for improvements, but it doesn't come without limitations; response rate is important, and making sure you're not only receiving the "extremes" (highly positive or negative feedback only) also plays a factor in the success of your program.

One discussion across the industry is whether or not social media will become a new form, or completely replace, customer feedback programs in the future. Let's face it - people are more likely to voice their opinions on blogs, forums, and other sites than provide that feedback directly to the company. There is also a feeling of anonymity online that allows people to be more honest in these forums.

By not keeping tabs on social media surrounding your company, brands may be missing out on potential opportunity. For example, if you're not monitoring online conversations, you may miss the post of a dissatisfied customer. By not knowing this information and not being able to respond in some way, it can be a lost chance to reengage that customer and get them to return in the future.

Social media monitoring tools are more sophisticated than they were even a year ago. This development provides analytical data that can be incorporated into the more traditional customer feedback data. Why is this important?

First, it gives deeper information on what makes customers tick, and secondly, if can alert a company to potential challenges with their current feedback system. For example, if feedback is coming back at a 95% satisfaction rate, yet online conversations lend to a lower rate, it may be that you are only collecting feedback (or making it inviting enough) from the completely satisfied customers. Is there something you can be doing differently to encourage all customers, regardless of their experience, to share their thoughts?

It could be a case of asking the wrong questions. If the questions on a feedback survey are too general, or only focus on one aspect of your business, you may be missing out on valuable feedback. Take, for example, a restaurant's customer feedback survey. If it asks general questions about the service a customer received and the overall experience, that's all well and good. However, if social conversations are suggesting that customers are dissatisfied with the food quality or portion size, it may be time to take those issues to your customers in your formal feedback program. If you're not asking the right questions, you may not be getting full information and miss the opportunity for customer loyalty and retention.

With all of the talk about companies monitoring what people are saying online, taking further steps by analyzing the information coming in, and engaging with customers, I can see how this might complement, but not fully replace, customer feedback programs.

For now, companies can think of social media as yet another tool at their disposal to learn more about their customers and see their business from the customer's perception. It'll be interesting to watch social media evolve over the next few years; its evolution over the last two years has been quite remarkable alone!

For the 5 Most Fascinating Stories in Franchising, a weekly report, click here & sign up.

On a recent sales process audit of a medium to large format full service franchise concept, we spent time with one of their new franchisees.

The concept is less complicated than a TGI Friday's but more challenging than a Qdoba Mexican Grill.

The unit is around 5000 square feet has a traditional grill menu you might expect with beer, wine and spirits.

The franchise owners were first time franchisees and had never owned a business before this one.

They both had very successful corporate careers as engineers.

Now, both are franchise owners. One is the full time primary owner/operator, the other owner is part time and still working as an engineer.

We asked the operating owner why a bar/grill concept?

His answer was straightforward and simple.

And only partly what you might think.

He and his financial partner had always wanted to be in this kind of business. Sort of makes sense - engineers are not shy around beer!

Then, I asked why a franchise and not just open an independent restaurant?

His answer was much more interesting.

He knew he didn't have the resident knowledge of the business, but could buy it in the form of franchise.

He planned to learn this new business inside and out, working as many hours as it would take and he did, and does

He also described how he could use his engineering skill, training and experience to run his franchise.

He went into great detail on how they made improvements to their operations by the way they chose to run their beer lines and design of the bar itself. He walked us through his kitchen describing the cooking and food expediting process. And told us what design mistakes they made with the build-out.

In his previous engineering role, he described the complex manufacturing problems he solved daily.

And, how he uses that knowledge everyday in running his business.

The engineer had a plan to buy a franchise in this category. He's smart. He knew what he wanted. He knew that he didn't need training - which was a good thing because his location is miles away from the corporate headquarters.

And, he approached this franchise project as an engineering problem to be solved.

Now there are a number of franchisors who would have looked at the application of these two engineers & would have rejected them since they didn't have the restaurant talent required.

They would have missed out a great franchisee who's running a topnotch unit and who plans to build two more.

And if you went into this restaurant and met the franchise owner you'd never believe he has only run a restaurant for a short time and this was his first one.

Where is your perfect Franchise Candidate hiding?

Are you interested in buying a franchise? Do you want to be a savy franchise owner?

Click here & sign up for Franchise-Info's Comprehensive & Complete Guide to Buying a Franchise. (Your email is safe with us & no franchisor will contact you, unless you want them to.)

I've read some posts on various industry portals that state that SEO is a better alternative to find franchise prospects than the franchise search engine portals (all well known to those in the industry).

Let's take a close look at these suppositions and what I call unfounded fear being driven in the minds of franchise sales executives.

Are we going to let an article change our behavior that has proven results? We need to look behind this.

One comment on a franchise group page came right out and basically said in effect that "internet franchise search portals" are dead. To me it's irresponsible to make such a bold statement. There is absolutely no hard metrics to make this statement. In fact it appears to be self-promoting. Is it relevant that the declaration was made by a group of people that are trying to get their audience to use their SEO services? Nothing worse than self-promoting declarations ungrounded in science.

I don't believe that lead generation portal advertising is dead -- and not by a long-shot.

It's true -- all franchisors want to direct prospects direct their websites. And social media is one way to do this. Any franchisor not implementing practices and programs to capture this kind of lead from the deep dark sea of prospects is missing out on growth opportunities.

In my view social media is part of a mix and to not drive leads through the franchise search portals is a huge mistake in spending. The franchisor that dismisses it as "dead" shows a lack of respect for the science behind lead generation. They do studies and their conversion rates are verifiable. Conversion metrics are proven.

It's true that brokers buy leads. But is this inherently bad? I find it rewarding to work with brokers. By and large they do a good job working with their clients to match them with franchises that will lead to fulfilling business lives.

But there are more reasons not to ignore the portals.

Users of portals do so at early stages of thinking about owning a business. They get to wander around and the media form becomes aspirational. Decisions get made over longer periods of time that that which social media is designed to prompt. To spend all the money on SEO is unwise because that is extremely costly as well and with wise spending on the portals one is "fishing where all the fish swim". They may not all want what we have to offer -- but at least our wares are for sale in the same marketplace.

Second, It's hard to know exactly what the user does, but for sure they go to the portals and the instincts of people are to open up another window and go to the franchisor's website. That would seem to the franchisor as a direct connection between the consumer and the website via SEO. But it's not. The lead came from the franchise search portal.

In fact the biggest challenge of social media (twitter, facebook, et al) from a consumer's perspective is that it is promotional in nature, and the users of such media, smell it and call it out. It's pure promotion and users frequently run for the hills. This is a truth spoken of by a great leader in social media at socialmediaexaminer.com. Don't be fooled, social media is no panacea to playing difficult odds in lead generation. It is just one avenue for spending and getting message out.

While the gauntlet may be thrown down by the pure SEO types, the fight is far from over. The franchisor -- perhaps with very few exceptions -- is best served with a mix of media forms -- and using the franchise search portals while the jury is out.

For the 5 Most Fascinating Stories in Franchising, a weekly report, click here & sign up.

Franchise recruitment sales is complex work.

It's very competitive out there and even more so for capital intensive franchises targeting high net worth sophisticated franchise buyers who are willing to commit to multi-unit development under an Area Development Agreement.

I have a lot of sympathy for franchise sales teams since they are under tremendous pressure to make sales happen and grow their brand.

No matter the size of the franchisor they all have budgets with a limit.

And with new franchisee marketing acquisition costs for these capital intensive franchises ranging from $12,000 - $25,000 you can easily speed through your budget doing trade shows, email blasts, direct mail, local market events, franchise portals, display print, PR, search engine optimization and social media marketing.

If we assume a $18,750 average franchise marketing acquisition cost and the franchisor wants to sell 20 new franchise deals it will require $375,000 in your marketing budget. You plan for that in your budget meetings. Before you start to sell.

But, then when it comes time to make the sale, you decide on "franchisor franchisee new development incentives" in the form of a fee and royalty reductions.

I have seen ranges from $10,000 - $30,000 with one franchisor waiving their upfront franchise fee entirely.

Will the franchisor's franchise fee incentive sell more franchises to existing franchisees?

Maybe, but I would argue if the franchisee cash-on-cash return for that franchise concept was compelling that most of those franchisees were already planning on developing new units and would have done so without a discount. The franchisor might recruit new franchisees because of the discount?

But I think that those new franchisees are like your smart existing franchisees who are looking at the numbers for an attractive cash-on-cash return. If they are not carefully considering the investment, do you as a franchisor want those franchise buyers?

But let's assume you need the $15,000 franchise fee discount to sell. What that does that do to your budget if you sell the same 20 franchises you would have normally sold?

This results in your new franchisee marketing acquisition cost per sale rising to $33,750 and a total annual cost of $675,000.

Almost a 100% increase in your acquisition budget! Would you have agreed to that at beginning of the sales process? Likely not, and you probably shouldn't agree now - especially when there are alternatives.

This is why I think across the board franchise fee discounts are bad business because they can cause discontent with your franchisees who paid full-price and they are likely not the solution to your franchise sales problem.

Here are the 4 things you should do instead of discounting your franchise fees -

1. Increase Your Franchise Marketing Recruitment Budget

2. Increase Your Franchise Fee to Invest in Your Budget

3. Drop Your Bottom Three Franchise Lead Sources

4. Re-engineer Your Franchise Sales Process

For the 5 Most Fascinating Stories in Franchising, a weekly report, click here & sign up.