Here’s how to prove that franchisees make money

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One of the advantages of buying a FASTSIGNS franchise is that franchise prospects get the opportunity to prove in advance of buying a franchise that existing franchisees make money.

As CEO Catherine Monson explains, FASTSIGNS is one of less than 5% of franchisors that files a financial performance representation, or Item 19, in the federally-mandated disclosure document.

So if you’re interested in buying a FASTSIGNS franchise in the United States, you can see the franchisee’s net profit in advance of making a decision to buy the franchise. The data in the financial performance representation is based on a financial benchmark survey that FASTSIGNS administers annually to not only identify franchisee earnings, but to gauge the financial performance of franchisees. Under-performing franchisees are offered additional training and guidance by the franchisor.

Monson says that FASTSIGNS chooses to share this financial data to be transparent, and to demonstrate to prospective franchisees that they can make money and a good living in the FASTSIGNS network.

In fact, “increasing franchisee profitability” is the “most important” key metric embraced by FASTSIGNS’ corporate team. Second most important: franchisee satisfaction. Of course, franchisors know that when franchisees make money, they’re happy!

There are several other factors that make franchisees happy at FASTSIGNS, including:

• It’s a 5-day-a-week business, so weekends are free.
• Sales generate great margins.
• Customers are not average consumers, but business owners.
• Franchisees make an impact on their customers’ businesses.
• Franchisees can sell more to the same customers, thus reducing the expense of gaining new customers.

Monson says FASTSIGNS focuses on teaching franchisees how to sell higher-margin products and services while utilizing “outstanding marketing” that builds the perception of a brand that’s value oriented. It’s all part of helping franchisees make money.

Buying a FASTSIGNS franchise isn’t as easy as deciding you want one. The corporate team invests time in vetting franchisee prospects, first making certain that the franchisee is a good fit for franchising in general, and then for FASTSIGNS in particular.

Prospective franchisees are carefully monitored to make certain that they are performing their own due diligence before asking to buy a franchise. It’s not enough for a prospect to speak to one franchisee . . . FASTSIGNS expects prospects to get acquainted with numerous franchisees in the discovery process.

While Monson is looking for franchisees to join FASTSIGNS, in this interview she shares two pieces of advice to help prospective franchisees buy any franchise of their choice successfully.

She also explains how FASTSIGNS helps master franchisees succeed and what emerging franchisors need to do to help their franchisees.

For in-depth information about owning a FASTSIGNS franchise, read the FASTSIGNS Business Opportunity eBook. Spend some time reading reviews of the book written by existing franchisees.

Categorised in: Financing, Franchise FAQ's

This post was written by John Hayes