Launching and expanding a franchise requires more than just a good business idea; it demands a strategic approach to recruitment that can often be challenging. Picture this: you’re a franchisor with a stellar concept, a proven business model, and a desire to expand your brand’s footprint. However, finding the right franchisees who share your vision and are equipped to drive success in their territories can be daunting.
Learn how territory mapping can transform your selling process from a formidable challenge into a strategic opportunity for expansion. By leveraging data-driven insights and innovative technology, franchisors can attract top talent, drive growth, and build a thriving franchise network.
Now, let’s follow those seven steps to enhance your franchisee recruitment process using territory mapping!
Before the Recruitment Process:
1. Define franchise territories and their potential
The first step in recruiting franchisees is to define the territories available for sale clearly.
Using territory mapping software, franchisors can easily delineate territories based on factors such as radius and zip codes.
Great, but what should we do next?
As a starting point, understand your typical influence area. What does that mean? It’s simply the territory your location should cover. How far can your location attract approximately 80% of customers? We’ve written a comprehensive tutorial about defining your typical influence area, so we won’t delve into it deeply here. But don’t forget about it!
Before drawing your areas on a map like an excited kid, you must gather some data, such as the ideal customer profile (ICP) you’re looking for, the success criteria of your brand’s location, and the competitive landscape. Fortunately, we’ve also written a blog post on defining your franchise territories’ winning criteria. Cheers!
With these two elements, you can define your franchise territories on a map and assess their potential. You’re ready to start selling them.
2. Organize prospecting efforts
Were you waiting for candidates to come to you?
The largest franchise brands may benefit from inbound leads, but unfortunately, it’s rarely the case for a new brand.
Step two: you must take a proactive approach and organize your outreach strategies.
First, visualize your franchise network on a map. Begin by mapping your existing locations within their respective influence areas. Then prioritize the next territories to sell.
Why is this important? Because we have two helpful tips using territory mapping tools to boost your commercial efforts!
- With a tool like Smappen, you can export zip codes from your territories. It will help you to geotarget your prospecting campaigns. Awesome, isn’t it?
- Additionally, use points of interest research to create an excellent prospecting list. Are you looking for taco franchisees? Why not target established independent taco restaurants and propose accompanying them with an amazing franchise brand like yours?
There are also a bunch of other actions to take for prospecting goals, like participating in franchise tradeshows. However, these are tips that not many franchisors are using, so they may help your brand stand out from the crowd.
During the Recruitment Process:
3. Showcase data to potential franchisees
Here we go. You’ve got your fish, but this is not yet won.
You need to convince him that the territory you’re selling is the best business opportunity he will ever have.
Presenting comprehensive data to potential franchisees is crucial for instilling confidence and demonstrating the value of joining your franchise network.
Here’s why:
- You showcase your expertise and proactivity
- You provide reassurance to candidates
Territory mapping software allows franchisors to generate visual reports showcasing the potential of each territory, including demographics and the competitor landscape.
This transparency and professionalism help attract high-quality candidates.
And we are not the only ones to say it, our customers too! Like Dustin Ingle, CEO & Director of franchise development of Insulation Commandos:
“They can see all that data and they're like, wow, this is a robust system, you can see a lot of data, you can see where these people work at, how much money they're making, the values of their homes and how many people live in that house, and what size is the house.”
One last thing but not least: the faster, the better. Send your analysis report to your candidate as quickly as possible!
And here’s some great news: At Smappen, we’ve just launched a new feature to automate your analysis report. Check out our tutorial.
Focus: Run your own Custom Area Analysis
On Smappen, download a slick, comprehensive Word report with all the juicy details on demographics and businesses within your chosen area.
- Instant Gratification: Just hit the ‘Report’ button in the analysis panel, click ‘Download’, and voilà – your report lands straight onto your device.
- Brand Magic: Jazz up your report with your company’s logo and colors to keep it on-brand and looking sharp. 🎨
Heads up !
Business Insights: Remember, to get the lowdown on local businesses in your report, make sure you’ve conducted a business search in the ‘Business’ tab first.
This feature is all about making your life easier and your business decisions smarter. And it’s as easy as pie to use – because we know you’ve got more important things to focus on (like taking over the world, one area at a time).
4. Qualify candidates effectively
The territory is important, but the profile of your next franchisee is equally crucial.
It’s essential to know what you’re looking for.
The most effective method to determine this is by analyzing your existing locations. Identify successful locations and examine the profiles of their franchisees, including their human and work skills, inspirations, unique qualities, and any previous experience in the same sector.
Then, proceed with the usual steps:
- Interviews: Conduct thorough interviews to assess the candidate’s suitability. This is also an opportunity for them to ask questions and for both parties to gauge compatibility.
- Financial Checks and References: Verify the candidate’s financial capability to invest in and manage a franchise territory. Check references to evaluate their business acumen and character.
5. Finalize legal agreements with exclusive or protected territories
Before launching your franchise, you must have prepared your Franchise Disclosure Document.
Now it’s time to present it!
However, ensure it’s finalized before the final signature with your franchisee.
Securing the territory is recommended. You can define an exclusive or protected territory, ensuring clarity and fairness in the franchise agreement.
Did you know? We’ve also written a blog post explaining the difference between protected and exclusive territories. Yeah, we know, we’re pretty awesome. 😎
Complete all legal and financial formalities required to finalize the sale. This may include payment of franchise fees, signing documents, and registering the agreement as required by law.
After Recruiting Franchisees:
The candidate is now your official franchisee.
What’s next?
Many franchisors stop there.
But it’s important to recognize that a successful franchisee contributes to the success of your brand worldwide.
Moreover, the happier your franchisees are, the more likely you’ll attract new qualified candidates for your next locations!
So, let’s delve into the final two tips to adopt after recruiting your franchisee.
6. Facilitate a successful launch
A franchisor must provide training and support to their franchisees.
But you can take this a step further.
You can actively assist in the opening of their location. Guiding franchisees in planning and executing a successful grand opening is crucial for building momentum and excitement in the local market. And guess what? Territory mapping is the key.
These tools can help identify potential business partners and even generate leads for B2B strategies. How ingenious! Simply search for businesses and points of interest on Smappen, export the Excel file, and send it to your franchisee.
They will benefit from a valuable resource for prospecting.
Additionally, you can offer them a brief territory analysis to determine which zip codes to focus their marketing efforts on, targeting their ideal audience.
7. Establish regular check-ins
Maintaining open communication and offering continuous support to franchisees are vital for their success.
You can further utilize territory mapping software to track their performance, tackle challenges, and pinpoint growth opportunities.
When monitoring performance, here are the key facts: utilize your customer database to import data onto the map. Analyze your current influence area, calculate your market penetration rate, identify areas with higher revenue generation, and determine where improvements can be made through geotargeted marketing campaigns.
You’ve got the gist.
Using territory mapping software can greatly improve the franchisee recruitment process by offering valuable insights, streamlining operations, and assisting franchisees every step of the way. By incorporating these seven tips, franchisors can attract and retain top talent, leading to the expansion and success of their franchise network.
Now, the ball’s in your court!
