When it comes to validating your franchise concept with potential franchise buyers, there’s often a gap between what franchisors think their franchisees are saying and what they are actually communicating to potential Franchise buyers. What are your Franchisees ACTUALLY saying vs. What you THINK they are saying?
Understanding this disparity is crucial for maintaining transparency and building trust in the franchise development process. In this article: What Your Franchisees Are ACTUALLY Saying vs. What You THINK They Are Saying, we’ll explore the common misconceptions and reveal what franchisees are truly conveying during validation calls with potential franchise buyers.
Misconception #1: Everything is Perfect
Reality: Franchisors may believe their franchisees are painting a flawless picture of their experience, but in reality, franchisees are telling a different story. They highlight both the positives and challenges they face. Often times the Franchisors version of “perfect” is significantly different than what is actually happening on the street.
Misconception #2: Financial Information Sharing
Reality: Franchisors might think their franchisees are having in depth discussions about financial success, but franchisees are typically more cautious and usually only answer specific questions about financials. Most Franchisees don’t talk about financials unless the potential Franchise buyer specifically asks. Think about it, if you were a Franchise owner would you be willing to share your P&L with a stranger that you just met 15 minutes ago?
Misconception #3: Top Notch Franchise Support
Reality: This is a big one. Defining the word “Support” is mission critical. Franchisors often feel they are supporting their Franchisees above & beyond what is required. But many Franchisees define support differently.
An example would be communication. A Franchisor might feel that 48 hours is an acceptable response time to a support request. The Franchisees might feel like that is twice as long as it should be.
Things like these need to be defined, but most Franchisors don’t really know what it is that the Franchisee expects from the Franchisor when it comes to support.
Misconception #5: Costs and Fees
Reality: Franchisors may think that Franchisees portray the value of what they are receiving for the fees that they pay to HQ. In reality most feel that they are overpaying for what they receive, especially if the Franchisee has been an owner for an extended period of time.
Generally speaking, the longer the Franchise owner has been part of the system the less likely they feel that the Franchise Royalty is worth what they are receiving.
Validation is an important part of the Franchise education experience. Potential Franchise buyers are going to speak with your existing owners whether you want them to or not. Wouldn’t it be better if you knew what they were actually saying versus what you think they are saying?
Franchisees are not just promoting the brand; they are sharing their genuine experiences, both positive and challenging. Understanding the disparity between perception and reality in these conversations allows franchisors to build trust with potential franchise owners, setting a solid foundation for a successful franchise partnership.
Remember, it’s not just what you think they are saying; it’s what they are truly communicating that matters most.
Do you know what your Franchisees are actually saying? Find out here.