Franchises For Sale! Huge Savings! Franchise Prices Slashed! Huge Rebates!

Will 2010 be remembered as the year franchising as we know it, went totally down the tubes?

Check this out;

In an effort to boost sales of new franchises, a certain franchise coaching company has decided to offer rebates. (If you'd like to know more about coaching franchises, this is a must read.)

I'll say it again. In an effort to boost the sale of new franchises, a franchise coaching company has decided to offer rebates. You know...

                                              Rebates!

When I think of rebates, I think of receiving a $40 rebate from Sears for the installation of my castle's new dishwasher, a couple of years ago. My Mitsubishi Outlander had a $1250 rebate, when I leased it.

http://commons.wikimedia.org/wiki/File:Mitsubishi_Outlander_Facelift_front.jpg

But rebates for purchasing a franchise?

A children's photography franchise just entered the fray, also. This particular franchisor is giving (for a limited time) a $10,000 rebate of the up-front franchise fee.

As several hundred franchise executives make their way back from the International Franchise Association's Conference that was held over the weekend, I wonder if they'll bring this new rebate bug back with them. Actually, I'm wondering if it will be only a little contagious, or if will turn out to be a fast-spreading virus.

I know that new franchise sales have been impacted by our choppy at best, economy, here in the US. I also know that things of high quality and value shouldn't have to be discounted.

There are other ways to sell. Informational webinars, some well-placed articles in influential places, media interviews, and franchise social media marketing, are just a few ways to get the word out about your concept.

Using rebates as a short-term solution to make a few new franchise unit sales is weak. You may also be creating a long-term problem. Ask yourselves if new franchise candidates are all of a sudden appearing just because of price. If so, are you creating potential problems by allowing them into your system? What kind of franchisees will they turn out to be, two or three years down the line?

Will these price-shopping franchisees turn out to be winners, or losers? If they turn out to be under- performing franchisees, they're not going to validate your system well, and they won't even come close to helping you reach your revenue goals.

" But Joel, what do you expect me to do? I need to sell franchises, and grow my system."

I understand. But don't lower your prices. It's probably not about price, anyway.

Learn about franchising, learn how to select a franchise, and finally, and learn exactly how to research franchises, right here.

Search for franchises, here

Comments

[The Franchise King]

Thank you Janie. I don't think I'd like to be on the other end of a sales pitch based on desperation either.

The Franchise King®

[Janie Baruk]

Joel,

I think you nailed this one. When franchises start putting their "fees" on sale, it smells to me like desperation.

When I was looking for a franchise to own, the difference of $5,000 or $10,000 in the upfront franchise fee was not as important as how good I thought the franchise company was.

Janie Baruk

[The Franchise King]

Sam,

Thank you for your comment. I understand that franchisors are having a hard time, right now. My business is impacted, too.

Food for thought;

What about the new franchisees that signed on 2 months ago? Do you think they'll be mad that they didn't get a "rebate"

The Franchise King®

[Sam]

I personally have been hearing the franchise rebate sales pitch a lot lately which doesn't make a lot of sense to me except it's a way for franchises to well... sort of lie on their FDD's. If I sell a franchise to you for $25,000 but then turn around and rebate you back $10,000 then on the FDD I don't have to disclose the rebate. So really it's just a way for franchises to discount prices without having to show it inside of the FDD's. My question is why not just discount prices. I've been also seeing some discounted prices in such businesses as illuminate gym which is a franchise I have been looking into. They display discounts on their site at www.illuminategym.com. I personally don't think it makes a franchise look weaker if they offer franchise specials. Maybe that's just me.