How can franchise brands successfully use segmented market availability to their advantage? Raintree CEO Brent Dowling shared his thoughts and expertise with Cristina Merrill in this 1851 Franchise spotlight article. Read on to learn more about Raintree’s unique philosophy and tactics that have been proven to help drive franchise hypergrowth across multiple industries.
It’s safe to say that every franchise brand wants to achieve significant growth, but what happens when a brand has officially crossed the line into “established” territory? When you’re a large brand, there’s usually only so much more room in which to grow.
Fortunately, there are many ways for established franchise brands to successfully approach segmented market availability and use it to their advantage, according to Raintree co-founder and CEO Brent Dowling. Raintree is a franchise sales organization that provides brands with services such as lead generation, content management and more. Raintree currently works with 17 franchise brands, including Anago Cleaning Systems, Cheba Hut, Footprints Floors and songs for seeds.
Established franchise brands with limited market availability have plenty of options when it comes to strategic growth, Dowling said.
“Facebook targeting reigns and would be our first choice as a marketing channel when heavy geo-targeting is required,” Dowling said. “Ultimately, though, we are advocates for national growth in most situations. Given that the brands we work with have specific supply chain challenges, we have strong geo-targeting campaigns in place to help. But for most brands, we look to national growth.”
When it comes to approaching segmented market availability, Dowling believes franchise brands should consider growing in available markets through their current operators.
“As a franchise, it’s far more efficient to support one owner with 10 locations than 10 owners who each only own one location,” he said.
Some established franchise brands might consider opening corporate shops and then selling those to Franchise Owners.
“It really depends on the brand and their infrastructure,” Dowling said. “We have some brands with only one location or territory. Then we have brands such as Nekter Juice Bar, which successfully runs 50 corporate units while doing a great job supporting 120 franchise units. Ultimately, if we see that a brand’s new franchisee growth is outpacing its support infrastructure and that the cash flow is tight, offloading a corporate location or two onto a franchisee is a great strategy to ensure you have the necessary capital to support your franchise growth.”
Of course, some established brands might want to grow within a market in which they already have a presence. If that’s the case, the brands will need strong testimonials from the successful owners within those markets, Dowling said.
“From a franchisee-franchisor relationship perspective, I suggest reaching out to the franchise owner in that market as the very first step and clearly communicating the intention to grow,” Dowling said. “Ensure that the franchisee is aware of the strategy and give them the opportunity to purchase the territory first. Doing so can prevent conflict.”
And brands should nix the idea that growing close to company headquarters will yield significantly better results.
“While understanding that many brands want to grow close to home, we no longer see the advantages in that strategy,” Dowling said. “At Raintree, across 17 brands, we see no correlation between franchisees who are close to a brand’s corporate headquarters in terms of financial performance, as opposed to those in markets geographically far from them. As a franchisor myself, I’ve realized it’s far better to find the right franchise owner then the right market. That strategy continues to pay dividends for us as we grow.”
Just because a franchise brand is officially an established one with many, many locations doesn’t mean there isn’t room for further growth. Franchise brands simply need to continue focusing on what they’ve always done: finding the right franchise owner, whether that is an existing franchisee or a new addition to the system, and making sure they are entering a viable market.
Raintree has been helping franchise brands achieve exponential growth through our proven, multi-faceted franchise development program that is second-to-none in the franchising industry. To find out more about how Raintree can help your franchise brand experience significant potential growth, visit us at raintreesales.com.
RainTree brings the Hounds Town USA story to life through robust content and a thoughtful long-term marketing plan to achieve 200 percent growth over the next 18 months
When former NYPD canine handler and Commanding Officer of the Nassau County Police Department canine unit Mike Gould retired in 2001, his experience with dog behavior led him to start Hounds Town USA, an interactive doggie daycare, boarding, and grooming facility. He grew the brand to three corporate locations, two of which were sold as turn-key businesses to former employees and customers, before turning to franchising. Along with President Jackie Bondanza, the brand signed several more franchisees on their own and realized that in order to properly scale the brand, they needed a franchising expert to not only position their brand in the marketplace but to provide the strategy on how to recruit the franchisees that fit the brand best, both culturally and financially.
Enter RainTree, a franchise development firm that helps position both emerging and mature franchises for optimal growth. After working with several different sales companies over a six-year time period, Bondanza was referred to RainTree by a colleague.
“Meeting the team was like a breath of fresh air. They are not only professional and good at what they do, but they’re also smart and innovative and ahead of the curve,” Bondanza said.
And the feeling is mutual.
“The RainTree office manager is a Golden Retriever named Drummer, so it’s safe to say we have a strong cultural connection to dogs and were drawn to Hounds Town USA,” said RainTree Development Manager Alex Gesten. “When we did a comparative study of the other doggy daycare franchises, it was clear that the economics of Hounds Town were far superior to anything else out there, both from an investment and a profitability standpoint.”
RainTree quickly identified that founder Mike Gould’s background as a canine handler for the New York Police Department, as Commanding Officer of the Nassau County Police Department canine unit, and in charge of the Military Working Dog (MWD) program would be a differentiator that would resonate with potential franchise buyers.
To properly communicate how Gould’s background was operationalized to bring those same skills to franchisees and staff members, RainTree developed strong content, including a 6,000-word franchise report, and executed photoshoots to develop visuals to properly represent the story and deepen the emotional connection with prospects.
“With really strong content to rely upon, we were able to work with a minimal lead generation budget,” said Marketing Director Linton Dowling. “By focusing on creating compelling marketing collateral, we now need fewer leads to achieve our mutual franchise growth goals.”
That belief that content is king is shared by the RainTree the Hounds Town USA teams. RainTree co-founder and CEO Brent Dowling notes that “to win the awareness war in a highly competitive franchise landscape, you need not only regular content but effective and value-driven content.”
He adds, “Mike hosts a number of radio shows focused on pet care and training, and he and Jackie host an awesome YouTube channel called Hounds Town TV. Plus, Jackie posts regularly on their blog and sends out amazing newsletters. RainTree takes the same approach to content on the development side, and a lot of the content is transferable and translatable into the development program. Our role was to help find a voice for all that content that would resonate with franchise buyers, rather than doggy daycare customers. We simply built lead generation strategies and a franchise sales process that utilized this content in a way that better connects with the psyche of a franchise buyer.”
Bondanza identifies RainTree’s holistic approach to brand growth, particularly in an emerging franchise, as a key factor in the success of the relationship. RainTree has helped develop the long term marketing, operational, and system growth goals, making Hounds Town better positioned to grow.
“RainTree knows how to allocate budgets to maximize results, and there is always someone on their team who has a recommendation for improving the many aspects of our business, from legal to marketing and operations,” said Bondanza. “It’s refreshing to have professional, honest, and down-to-earth feedback and guidance even if this guidance comes at the cost of a lead, or of a short-term sales goal. RainTree fully understands that their job is not just to sell franchises; it’s to grow a brand. They see the bigger picture and are invested in it. And sometimes that means bypassing or turning down an opportunity for the greater, longer-term good. Understanding this is absolutely essential to a brand’s successful growth.”
Dowling notes that the two teams “quickly and seamlessly integrated into a singular, cohesive team, with shared goals, doing so in a way where we trust each other fully.”
“Like all brands in the RainTree portfolio, the working relationship is extremely strong, but in the case of Hounds Town, we’re all having an incredible amount of fun working on this concept and are even more excited for what the journey ahead of us,” said Dowling. “I have no doubt that Hounds Town USA will successfully penetrate a host of new markets in the US in the coming months and years. But today, we are all just enjoying the ride.”
How many people get to do what they love every day? As co-Founders of The Franchise Insiders, husband-and-wife franchise consultant duo Jack and Jill Johnson have designed a business that allows them to follow their true passion: guiding prospective entrepreneurs to find success through franchise ownership. Since their company’s inception, The Franchise Insiders have created such a name for themselves in the franchise world that one would be surprised to learn that their company was founded only three short years ago.
How Jack and Jill Discovered Franchising
In 2002, Jack was working at a company called Home Care Assistance, offering in-home care for senior citizens and people with disabilities.
As the business started to grow, the Owners decided to franchise their concept and asked Jack if he would head their franchise sales department. In 2008, Jack became Vice President of Franchise Sales. As someone who loves a challenge and isn’t afraid to put forth maximum effort into everything he does, he was excited about this new endeavor and committed himself fully to his new role.
Jack grew Home Care Assistance from a small business with little brand recognition to a top international franchise in just two years, continuing to award 30+ franchises per year for almost 10 years!
During this time, Jack spent a great deal of time working with many franchise consultants and became fascinated with this aspect of the business. While he did enjoy developing one specific franchise brand at Home Care Assistance, the idea of having an inventory of franchise brands to choose from, and connecting prospective entrepreneurs with their ideal franchise opportunity, resonated with him. He also was intrigued by the idea of starting his own company with his wife, Jill and taking control of his own destiny.
One thing Jack discovered during his time helping hundreds of prospective franchisees realize their dream with Home Care Assistance was that he wanted the same freedom and schedule flexibility for himself and his family. At the time, Jill was working for IBM, a career that kept her very busy and constantly on the road. On top of that, they both craved a more flexible schedule to be able to spend time with their young son.
Both Jack and Jill had a passion for helping people find success and could not think of a better business to start together than a franchise consulting company. In 2017, they launched The Franchise Insiders, with a mission of utilizing their franchising expertise to find freedom for their clients through business ownership and maintaining a laser focus on the happiness of their clients.
The Johnsons decided to place their first ad in Southwest Magazine, the in-flight periodical offered to passengers on Southwest Airlines, to get the word out about their new company. Little did they know at the time, this ad would build their business. In the second month the ad ran, a Southwest Airlines Captain who was in search of a lifestyle change gave them a call and ended up investing in a franchise. And that was just the beginning.
This first placement propelled their business toward success. Since then, Jack and Jill have helped hundreds of people become Franchise Owners.
The Secret to Jack and Jill’s Success
So, how have the Johnsons found such success in their franchise consulting business? They attribute it to a few things:
Through The Franchise Insiders, Jack and Jill have built their own brand identity founded upon honesty and integrity, client satisfaction, and a passion for helping people. The Johnsons understand the importance of building their own personal brand and have conveyed their voice through a highly professional website with a plethora of information, client success stories, and videos, among other things.
Jack and Jill are driven to be the best at everything they do. “We are never satisfied,” said Jack. “We wake up every morning with both fear and excitement in our belly, ready to take on the day doing what we love most – helping people pursue their dreams!” They possess a hunger to succeed and are constantly seeking innovative ways to improve their business model.
The Franchise Insiders are also extremely client-focused and are available for their clients any day, any time. Their quick response time is usually under 10 minutes, and their clients are extremely grateful for their timely responses. Getting back to clients’ concerns and answering questions quickly not only increases their level of trust but also demonstrates that Jack and Jill truly care about them.
Last but not least, Jack and Jill are constantly researching brands and updating their franchise consulting inventory with those that are doing it right. By having a number of exemplary brands under their umbrella, they are more likely to find the perfect match for their clients. The Franchise Insiders look for certain qualities in the brands they present, including scalability, the opportunity to build an empire, and backing by a third-party company, like Raintree. These attributes give them the added confidence that a brand’s FDD is sound, the concept is smart, and there is a proven sales process with an established company behind it.
Through franchise consulting, Jack and Jill Johnson have not only transformed the lives of their hundreds of clients, but they have also achieved their own goals of freedom through entrepreneurship, controlling their own destiny, and being purveyors of the American Dream! They have the opportunity to speak to potential entrepreneurs with infectious energy each and every day and feed off of the drive and excitement of everyone they meet. As Jack says, “It is good for the soul!”
Congratulations, Jack and Jill, for being Raintree’s May Consultant of the Month. We truly appreciate your partnership and we look forward to continuing working with you to enhance more lives through the gift of entrepreneurship!
Unlike the majority of us, franchise consultant Adrienne Leigh is spending her quarantine days aboard a boat in the Florida Keys. Adrienne, her husband, and in-laws set out on an incredible adventure to circle the eastern third of the United States over the next two years but only made it as far as Florida before the stay-at-home orders developed. Even though Adrienne’s new office is the back deck of a boat in paradise, she is still 100% focused on finding her clients their ideal business, which is not new to Adrienne at all!
With over 25 years of entrepreneurial experience as a licensee, Franchise Owner, independent business owner, and working on the corporate side of franchising, Adrienne is well versed in the business world. It is hard to believe that years ago when Adrienne was working as a career transition consultant, she didn’t even like the idea of franchising! In that specific role, she found herself confusing franchising with “from the ground-up” entrepreneurship.
She didn’t yet realize the support Franchise Owners receive from Corporate, as well as the support from other franchisees and the truth to the statement that you are really “in business for yourself….but not by yourself”. So at the time, she jokes, she was actually one of those “ambushes” that happen to our clients steering them to work on their resumes rather than continue franchise exploration.The whole story changed when she fell into franchise consulting as a career herself, which she did by researching the possibility of a job in a franchise corporate office and instead found the role of franchise brokerage.
In 2003, Adrienne decided to join FranNet and start her career as a franchise consultant. She stayed with the network until 2008 when she joined the franchise Murphy Business & Financial (both franchise and business brokerage), but when that 10-year term expired, she became independent in 2017 as Success Franchising to focus solely on her first love which is franchise brokerage. She is a proud member of both the IFPG and Franchise Brokers’ Association, of which she is also a member of their Advisory Board.
Since becoming a franchise consultant in 2003, Adrienne’s purpose has not changed. She loves working with people and helping those in career transition, which she believes is one of the hardest times in a person’s life.
With an M.B.A. from the Anderson Graduate School of Management at UCLA and a Masters in Spiritual Psychology from the University of Santa Monica, Adrienne is able to use all of her skill sets in what she calls the “puzzle” of figuring out exactly what her clients are looking for. When it comes to franchise consulting,
Adrienne also loves that two days are never the same and that she is constantly learning. It also doesn’t hurt that she is able to work from anywhere in the world and that her business associate is her daughter, Kathryn Hetzendorfer. “Kathryn has made franchise consulting with Success Franchising her full-time career and I could not be more proud,” says Adrienne. “She was actually one of my motivating factors to find a flexible career and now we have created a family business!”
When it comes to the brands Adrienne chooses to present, she has a long list of “must-haves” in order to prove the validity of the model. First, she looks at the turnover rate as well as whether the brand has a proven track record. All in all, she needs to see something that will make her feel comfortable with the success of the system and her placement. What are Adrienne’s favorite kinds of brands to present? The “sleepers” that her clients would never find on their own. The one thing she hears most often from clients is, “Wow, I’m so glad we met because I never would have found this franchise without you, but it fits me perfectly!” Adrienne is always looking for those “hidden gems” which are typically service concepts or those that do not require a retail brick and mortar location.
Adrienne mentions that she also enjoys working with brands that she knows have been vetted by a franchise development company such as Raintree. She says, “The additional layer of due diligence that I know Raintree has done on their brands means I’ve got a certain confidence level from the beginning. I know they are brands with solid support and infrastructure in place.”
After 17 years, Adrienne feels she has found success as a franchise consultant because she listens to her clients and is able to use her psychology degree to dig deep and figure out what her clients are looking for, even when they don’t know themselves. She also emphasizes the importance of staying up-to-date on brand information and staying informed of any changes or updates.
Adrienne also makes it a point to participate in a mastermind group with other franchise consultants to share best practices, tips, and discuss different brands. More than anything, she works on her consulting business full-time and works hard! “Mostly, I work my ass off!” Adrienne jokes when asked why she has been so successful. “As a Franchise Consultant, we are paid to understand what makes a good concept for someone and to facilitate the process from start to finish. We need to know the brand reps and build strong relationships with them, so we are always on the same page to get the clients across the finish line. We have a tremendous responsibility when we are working with people in making what is probably one of the most important investments of their lives….and we need to take that seriously!”
Congratulations, Adrienne, for being the very first Raintree Consultant of the Month, and thank you for your continued support and partnership. Everyone at Raintree looks forward to working with you in the future!
One of the fundamental things we pride ourselves on here at Raintree is partnering with brands that bring something special to the customers they serve. We strive to only join forces with franchisors who are committed to giving back to their community, making a difference, and generally making a positive contribution to their industry. Our partner brand Hounds Town USA is a shining example of the type of franchise we’re always looking to add to our roster. Over the past few weeks, in the wake of the COVID-19 outbreak, Hounds Town USA has gone above and beyond to not only show gratitude and appreciation for their customers and community members but also to help their Franchise Owners stay ahead of the situation with thoughtful, creative marketing initiatives and a level of world-class support that comes from being truly invested in each of their personal and professional lives.
Raintree’s resident Franchise Consultant Educator and Hounds Town Brand Manager, Charlotte Wagner, recently published a LinkedIn article detailing Founder Mike Gould and President Jackie Bondanza’s amazing efforts at turning this giant sack of lemons into gallons of lemonade thanks to a winning blend of experience, business savvy, and genuine care and concern for every Franchise Owner, Team Member, and community member that Hounds Town USA serves in its 11 locations across the country. You can read the entire piece here, but here are some of the key takeaways:
Hounds Town USA’s Executive Team has been busy visiting locations, putting together a 45-day marketing plan with marketing materials, and simply being available to discuss, strategize, and assist Owners in any way needed.
Since pet care is considered essential, all Hounds Town locations have remained open, and those that are following the COVID-19 45-day marketing plan are operating at 60%-70% capacity!
Hounds Town’s marketing initiatives during this time include a program for healthcare workers in need of pet care right now, offering discounted daycare.
In an effort to support local businesses in the communities they serve, Hounds Town is rolling out two programs to support restaurants that have been forced to close: in addition to ordering lunch for staff members from locally-owned restaurants, they are matching up to $50 in Hounds Town Bucks (store credit) for customers who purchase gift cards to local eateries.
Open since 2001, Hounds Town has navigated through 9/11, the 2008 stock market crash, swine flu, numerous natural disasters, and the 2017-2018 flu season.
Hounds Town’s business model was formulated to operate with limited overhead costs to survive economic circumstances just like this!
The novel coronavirus that causes the COVID-19 disease does not affect dogs, so Hounds Town Franchise Owners and Team Members can continue enjoying those belly rubs and doggie kisses, and customers can feel safe and happy knowing their beloved pups are getting the exercise and attention they need.
Raintree is proud to partner with Hounds Town USA and will continue sharing inspiring stories of our partner brands’ triumphs over the challenging and unprecedented times we are currently navigating. For more information on Hounds Town USA’s available franchise opportunities, please visit www.houndstownfranchise.com.
Before franchising, I came from the competitive snowboard world. That’s a career built on learning to make the right decisions, even when fear is at an extreme level. The right decision can mean victory & elation. The wrong decision can sometimes mean serious injury or even death.
But as I exited that world, I lost my love of fear and my ability to make the right decision, even in cases of high risk. Of course, I started a franchise development company and became a Franchisor, but honestly, neither of those decisions came with high risk. The need in the market for both those companies was clear. And so, since my snowboarding career ended, I’ve never really made any high-risk fear-driven decisions.
Many of my closest friends today whom I snowboarded with, however, retained their excellent decision-making ability in the face of high risk.
To cut some long stories short; my best mate started a snowboard glove company in 2010 when snowsports retail was dead – it’s now the biggest snowboard glove company in Australia.
Another poured almost all of their snowboard earnings into Netflix in 2010 – when the stock price was $19.
And yet another bought $40K worth of Bitcoin in 2013 – It was about $300 per BTC at the time.
And so for the last few years I’ve been wondering whether I’ve lost the ability to embrace risk, and make smart decisions despite extreme fear. I’ve told myself for a while – if you get scared in business – embrace it! It means you’re probably on the right track.
Enter COVID-19. And I’m scared…so now it’s time to get ready.
Here’s how you can too:
STEP 1: WATCH OTHERS RUN SCARED
It’s pretty evident to everyone at Raintree that many franchise brands are now full of fear.
In terms of franchise marketing keywords, Google and Facebook PPC cost-per-click (CPC) prices are falling quickly, but the search volumes have remained stable and even in some cases increased. There’s already far fewer brands active on franchise portals. Most franchise brands appear to perceive the shutdown of restaurants, bars, retail and the need for social distancing to directly correlate with a shutdown in franchise marketing and sales. Simply put, it looks like many franchise brands are scared – and rightfully so!
The result of this fear has undoubtedly created an uncrowded franchising marketing space.
STEP 2: ACCEPT YOUR FEAR, THEN SET IT ASIDE
It’s OK to be scared. In fact, it’s good. It likely means there are opportunities here.
But try to set it aside and make some logical decisions. I used to have to launch off 100-foot jumps for a living, and before I did, I would always take 5 very deep breaths. This would slow my heart rate, which in turn would reduce my anxiety and therefore physically allow me to be in a better position to make decisions and mental adjustments along the course.
So, take 5 very deep breaths now and then decide if you think some sort of normalcy will resume in the next 2-4 months. If you believe that to be true, then I think you should be brave and continue to invest in advertising your franchise opportunity.
As fear takes over other brands’ decision-making processes in the coming days and weeks, the power of your active franchise marketing dollars will increase exponentially. Put yours aside and really assess the opportunity here.
STEP 3: FOCUS ON THE OPPORTUNITY FOR YOUR BRAND
Based on previous economic downtowns, the most notable being the 2008/2009 Global Financial Crisis, we are expecting to see a significant increase in the franchise buyer pool in the coming months.
Unemployment and corporate layoffs are a breeding ground for a surge in potential franchise buyers, who become attracted to the idea of controlling their destiny through business ownership, with the support (and reduced risk) of a franchise behind them.
As one small data point, at the first franchise company in 2009, we continued to advertise that year, in spite of the state of the economy. We awarded 5 franchises that year.
…We awarded over 100 franchises in 2010.
The demand for franchise sales still exists, today. Again, search volumes for franchises on Google have stayed steady this week. Certainly, based on previous recessions and global economic disasters, we believe that demand is going to skyrocket once we start to see the COVID-19 curve flatten.
Having a pipeline already built, versus having to start from zero to build it will mean the difference between brands winning and losing at franchise sales in 2020.
STEP 4: TRAIN YOUR SALES STAFF ON THE OPPORTUNITY FOR THEIR PROSPECTS
The disparity in performance between experienced and inexperienced franchise salespeople is about to become more obvious than ever. In a climate of fear and the unknown, understanding buyer psychology and how to work with the variety of fears that most candidates will have is going to play a critical role for you in terms of deals being won and lost.
At the very least, you want to encourage your candidates to move at their own pace. Over the next 1-2 months, you need to nurture & educate, rather than sell. Pushing any type of timelines or outcomes on candidates while we are in a complete state of the unknown could prove unwise.
Your primary goal should be to keep your candidates active and engaged so that when the COVID-19 curve flattens, you have a pipeline full of candidates who will be in a strong position to move forward in buying a franchise.
I’d also recommend that you ensure your salespeople understand the opportunities that lay ahead for fast-acting franchise buyers. Two of the most important being:
~ Improving Loan Environment – Interest Rates:
The first is the most obvious: Interest rates are at historic lows. Here are some talking points:
Because of the COVID-19 scare, the Feds dropped prime to zero which has allowed all banks and credit unions to drop their unsecured interest rates as well. There will be the lowest interest rates we have seen in 10 years.
With the prime rate being at zero the banks and credit unions are deploying as much capital as they can which means that approval rates should get much higher
More banks will be looking for SBA loans to put on the books so the number of banks focused on this type of lending will increase
Legislation being introduced to Congress by Marco Rubio, Chairman of the Small Business Committee. It is focused on the 7a Program. Some of the highlights are:
Allow any 7(a) borrower to use the proceeds of the loan for payroll support, including paid sick leave.
Waive all fees for all 7(a) loans for one year for both lenders and borrowers.
Provide a 90 percent loan guarantee for all loans, no matter the size.
We do, however, expect a backlog in funding to come through, hence why you should prepare to fund your franchise marketing budget, without fee revenue for at least the next month.
~ Real Estate:
Unfortunately for many, we predict that there will be a significant increase in the number of independent (Mom & Pop) businesses that close over the coming month or two. Without the support of a franchise corporate team to help strategize and implement survival tactics, they won’t have the same ability to survive the months of social distancing, self-isolations, and quarantines.
This could quickly result in a shift to what we call a “tenant’s market”. Commercial real estate will become more widely available, with the cost of rent decreasing, Tenant Improvements (TI) increasing, all of which will result in new Franchise Owners being able to see a much faster return on investments than what we have seen over the last decade.
STEP 5: ENACT INTELLIGENT RISK
Again, while many franchise brands reduce their lead generation spends to zero, opportunities will only increase.
As I Franchisor myself, I understand right now how it feels to see minimal revenue, with continued overhead – it sucks! You can, however, ensure you are in a good place to continue to sell franchises while reducing your cash burn.
There are three types of franchise buyers in terms of lead generation:
To reduce your risk, focus only on the HUNT MODE candidates to fill the top of your funnel. This means you should only be spending marketing dollars on SEO, Google PPC ads, Franchise Portals & Brokers. PR will help engage and keep prospects active, per the advice above.
By turning off Youtube ads, Facebook ads, portals with a conversion of <2% conversion, and a number of other channels, we will reduce the budget for most brands by about 50-70%.
But again, the power of that remaining 30-50% is going to increase by the day here, as other brands succumb to their fear and shut down franchise marketing.
The advice here is to reduce your spend today to just the HUNT MODE channels.
Then, as soon as you see the COVID-19 curve start to flatten, double-down on your lead generation spend. Franchise sales are going to get crazy shortly after that time! But begin the preparation on those campaigns now. This will put you months ahead of your franchise marketing competition.
THE REAL RISK IS ALWAYS IN DOING NOTHING
Continuing to push forward with Development now can allow you to not only save your year in franchise sales but if the bounce-back is as quick as it was following the crash in 2008/2009, staying the course will allow you to quickly distance yourself from your competitors in terms of new franchise owners and market share.
In our experience, it takes 60-90 days for a new lead generation campaign to optimize and mature, and from there, a 12 week sales cycle to close your first deal. This means that waiting for this virus to be completely under control will mean from that day, you will be up to 5-7 months away from your first closed deal. While in that time, your competitors who held steady may be capitalizing on the biggest pool of post-recession franchise buyers in the last 10 years.
Emerging brands need franchise fee revenue to survive. Even brands that are currently royalty-sufficient, may not be so with continued closings and a slow/halt in consumer spending. Shutting down your opportunity to sell franchises could really dictate the speed of your recovery, and unfortunately for some, that decision may be the nail in the coffin in a few months.
And while I don’t encourage this for you all, I for one will be doubling down on franchise lead generation in the next week or so. It’s risky to do that so early, but of course, I just want my own “Netflix” / “Bitcoin” success story to share with my mates when I see them next at the end of this year.
“Life is inherently risky. There is only one big risk you should avoid at all costs, and that is the risk of doing nothing.” –Denis Waitley