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Friday, September 15, 2006

Buying a franchise: Facts and trivias

By Christine Casanova

Excerpts from a survey of potential franchisees conducted by Successful Franchising.

Seventy percent (70%) of all prospective buyers prefer to invest in a franchise rather than a business opportunity.

Interest in buying a franchise is evenly distributed among all areas of business:
  • 30% retail
  • 20% home-based
  • 20% fastfood
  • 10% office

Most prospective buyers need 6-12 months or more, to decide on a franchise. Sixty percent (60%) of prospects look at 6 or more franchise concepts before deciding on investing in one franchise. This means that franchisors need to create a good first impression – through state-of-the-art marketing materials, operations manual and aggressive sales strategies in order to compete in the franchise marketplace.

Some 80% of franchise buyers will tend to buy a local or regional franchise while 80% will consider a franchise whose name is not known in the region he lives in. This means you need not be well-known to attract franchise buyers.

Some 60% of prospective request materials by mail to gather information (this is either post, email, or fax).

About 70% of prospects who are looking at a franchise program will want to meet the franchisor before buying into it. This means don’t give all information at once. Leave some for the imagination. Marketing materials have to be designed to create face-to-face sales opportunities.

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