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"I think I’m doing everything right. Why am I not selling more franchises?"
After working in franchise management as a CDO or CEO for more than two decades with nearly a dozen brands, I have seen a lot when it comes to recruitment. Two truths keep surfacing on my journey:
1) A great business model is not enough to grow your brand.
2) Using your metrics and data, you will find your system and recruitment rhythm…and start closing more deals!
Question: Are you using your data to drive planning and decision-making for franchise recruitment, or are you just looking at numbers and hoping for the best? If your answer is anything like the latter or “I’m not sure,” you have a problem.
In a study by FranchiseGrade.com using data from FDDs, they found some interesting facts about U.S. franchise brands:
You can read the whole study if you like, but you probably get the point. Whether you are winning or struggling with closing more deals and opening more units, I guarantee you there is opportunity to improve recruitment results with your existing team and current investment by turning to your metrics and data.
I will say it again: a great business model is not enough. Yes, a great business model is required for long-term success, but it does not guarantee franchise growth. Why? Because without a data-driven recruitment process, candidates do not sign agreements, your pipeline dries up, and disparity spreads throughout the company.
The franchise brand cemetery is full of “great brands” that could not figure out how to recruit new franchisees and get enough units open.
Through consistent and accurate data collection, observation, and analysis you will be empowered to identify your recruitment “secret sauce.” It is there. Trust me on this. It is what happens when you manage by data and facts, not opinions and emotions. This approach will allow you to establish a repeatable system that gives predictable results. Your brand will build a successful franchise development program or improve the one you have.
Act now! Gather up your data from the last quarter, 6 months, and year. Review the overall numbers, ratios, and step conversion metrics for each period. Focus more on what happened with the leads and candidates who came in, versus starting with lead generation sources. Assume that if someone reached out to you, they were generally interested in your brand. What do the numbers say happened after an individual raised their hand and said, “I’m interested.”?
Your game plan for training, coaching, and managing recruitment will start to be crystal clear. Not only will you increase signings for more units, you will also see:
Let’s go to work!
Art Coley leads CGI Franchise. CGIF has been helping franchise companies implement and execute repeatable and sustainable recruitment systems for more than two decades through the Recruitment Operating System. Based in Temple, Texas, CGIF works with brands worldwide. Contact him at 281-658-9409 or acoley@cgifranchise.com.