In our last article, we introduced the five groups who are buying franchises and explained how to adjust your marketing to speak to these new audiences. Understanding who is buying franchises is important, but understanding why can be even more valuable. Identifying the motivations that drive your prospective franchisees is critical to building a successful marketing campaign and attracting the right leads to your brand.
While every segment and audience will have its own unique factors, we’ve found there are some that are consistent across the board. This article will show four of the top reasons why people are interested in buying a franchise, and explain how you can align your marketing to these drivers.
Our client Talem Home Care & Placement Services attracted Aldon Purdham Jr. to their franchisee team because of their fantastic support system.
Reason 1 – To Build the Lifestyle They Want
The way people work has shifted. Across all generations, people want flexibility, the ability to do meaningful work, and the opportunity to build the lifestyle they want outside of their job. According to Gallup, 53 percent of employees say a role that allows them to have a greater work-life balance and better personal well-being is “very important” to them. Similarly, Bank of America Merrill Lynch reported that 59 percent of millennials want to find a career that will support the lifestyle they’ve envisioned for themselves.
Owning a business can still require you to work long hours – especially in the first couple years but over the long term, with proper systems and support in place, owners can look forward to much more freedom and flexibility. Franchising has become a viable alternative to the typical 9-5 type job. It gives people the freedom to take control of their own work while providing enough income to support other aspects of their lives. As a franchisor, this means it’s important to implement programs that encourage franchise owners to stay with your brand for the long-term, and provide opportunities for franchisees to grow alongside your business while still being able to have a life outside work.
Reason 2 – To Start a Business With Less Risk
The Franchise Motivation Survey Report showed that 45 percent of new franchisees had considered starting their own, independent business before selecting a franchise. The main reason they decided not to start a business from scratch was because it was too risky. This makes sense when you consider that the US Bureau of Labour Statistics states that more than 30 percent of businesses fail within 2 years of opening, and more than 50 percent fail within 5 years.
Of course, starting any business means taking a risk, but franchising helps to mitigate this risk by providing a proven structure, way of doing things, and support system. Franchisees value the fact that they aren’t going into a new business alone, but instead have the support of an established brand behind them. In fact, the same Franchise Motivation Survey showed that training and support was the second most important reason to choose a franchise over an independent business.
When marketing to prospects, emphasize the training, support, marketing, and proven business models that you have in place to help them achieve success. Another opportunity to attract franchisees is to offer financing or to partner with a bank for funding. One of the biggest reasons independent businesses fail is difficulty accesses funds, but having the backing of a franchise can make it significantly easier for franchisees to get the financing they need.
Reason 3 – To Be Their Own Boss
A recent study found that 62 percent of Americans want to be their own boss, and franchising represents a way for them to do so. They want to manage the day-to-day aspects of a business and do work that is important to them. Of course, this can be a bit of a challenge for franchisors. Every brand allows for different levels of autonomy from franchise owners, so finding the right type of franchisee is very important.
If you’re a smaller franchise and want input on how to improve and grow, market toward franchisees who have a high desire to try new things and be involved in strategic decisions. If, however, you have an established business model and want franchisees who can work within your operational procedures and systems, make sure you are appealing to people who want to stay within the day-to-day operations of their location. Clearly communicating the type of people who fit within your business is important for attracting the right type of leads from your marketing campaigns.
Reason 4 – To Build Equity
“How much money can I make?” It’s one of the biggest questions any potential franchisee will ask. At the end of the day, franchisees are looking to build a profitable business that will allow them to replace or grow their current income. They are taking on a considerable risk, and they need to be confident that the risk will pay off for them now, and potentially for their family down the road.
Building equity for the future is a key driver for potential franchisees. Any information you choose to share about financial performance must be included in the Item 19 portion of the Financial Disclosure Document (FDD). What you choose to share will depend on what makes sense for your business, but remember that there are legal requirements that must be met in this section and that any financial information you want to share with prospects must be included here.
Understand What Drives People When Building Your Marketing
A recent survey found that 70 percent of franchisees are very satisfied with their decision to buy, while 25 percent are somewhat satisfied. This shows that franchising is a viable option for people who are looking to build their own business while getting the support, brand recognition, and proven systems that come with a franchise. By recognizing the factors that drive franchisees to purchase, such as the desire to build a good lifestyle, start a business with less risk, and be their own boss, you can tailor your marketing to align with these values and get more qualified leads for your company.
Need help finding qualified franchisees? Contact us for more information on our Franchise Growth Programs.