-
Are you a supplier, vendor, or provider looking to sell a service or product in a franchise system? From my experience, I've seen three main ways to go about it: top-down, bottom-up, and from the side. Each has its pros and cons, and picking the right one depends on your goals the situation, and your relationship.
-
#1 Top-Down Approach
-
This one's all about pitching directly to the franchisor. You need to show them that you get their business and that you can fit right in without causing any headaches. Make it clear that you're there to help, not disrupt. Highlight how you'll work with their existing setup and make them look good in front of their franchisees.
-
Your goal is to make their decision super easy by showing them you won't introduce any risks or problems. You understand the franchise relationships and your job is to help the brand perform with franchisees at the unit level and work with the HQ team at the same time.
-
#2 Bottom-Up Approach
-
While we won't dive deep into this one, it's usually about getting individual franchisees on your side. When enough of them are excited about what you offer, the franchisor is more likely to take notice.
-
Be careful, don't make the franchisor look bad for not seeing you on their own... show them how you've helped a few franchisees and you'd like to see if you can help more. Maybe they can negotiate a better rate for a brand-level deal?
-
#3 From the Side
-
This one involves using your connections and relationships within the franchising world to create some buzz and influence the franchisor indirectly. Maybe they have an FAC (franchise advisory council) or an owners association you can approach. Maybe there is a strategic relationship with another existing vendor who you can compliment or collaborate? How can you add value to the mix? Franchisors are often hesitant to pick new vendors because they're afraid of things going wrong and looking bad.
-
They don't want to be blamed if anything goes wrong, for any reason. They want to protect the franchisees and their relationship, credibility, and trust - it's paramount. With any approach, you need to address these fears by proving that you're reliable and won't cause any disruptions. Show them that working with you is a safe bet and that you'll make things easy for them. If you've got other happy clients, share those case studies and references, it can reduce the fear and provide a perspective that you know what you are doing.
-
By clearly explaining how you can help and showing that you understand the franchising world, you can build trust and make it a no-brainer for franchisors to say yes to your offer.
-
Selling into a franchise brand is not easy or quick, it takes time and willingness to offer trials, pilots, and no-risk test programs to prove and demonstrate value and dependability. After you've reduced the risk, they'll be more likely to consider a longer-term engagement with you.
