Cameron Herold argues that the key to selling more franchises is focusing on franchisee profitability and success rather than PR or marketing. By helping franchisees replace and then significantly increase their previous incomes, franchisors create strong proof-of-concept, improve validation, and drive franchise growth.
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Do you want to sell more franchises? I'll tell you how. And it is not what you think it is. It has nothing to do with getting more pr. It has nothing to do with your marketing. There is one core thing that anyone who's in the business of franchising units needs to do more than anything else, and that is obsess about your franchisees profitability. If you care more about how much your franchisees are making, if you try to get them to a scale where they first replace their income and then they double or triple the income they've ever made in prior roles before, you will sell more franchises than you've ever sold before. Because your franchisees will validate well. Your proof of concept will validate really well. So as the franchisor, mostly you need to care about your franchisees happiness, your franchisees success and your franchisees growth. And if you can get your franchisees to wrap their head around the fact that you care about their profitability as much as they think you care about revenue for the sake of royalties, then everybody wins.