FranchIse Sales Obstacle: No Money

FranchIse Sales Obstacle: No Money

Every franchise sale has four basic obstacles:
No need, No money, No hurry, No trust
Today we are discussing a big one – No money 💰
When a lead say they have no money → That is a lie (unless they are under chapter 11).

Likely, there are very limited funds and you are not a priority and/or they are scared of the financial risk. The choices are to walk away OR make yourself a priority. By showing the value and painting a picture of where franchise ownership will take them, they can be convinced that the reward is enough to justify the risk.

If prospect clearly sees the value, there are always financing options on the table:

Franchise Financing Company
There are companies that specialize in funding new franchisees. These companies usually match the borrowers with the perfect lenders for their financial need. The franchise financing companies can also lend directly to new businesses.

Traditional Loans
One can arrange to borrow from regular commercial banks or credit unions for their new venture. According to the Small Business Administration (SBA), lenders prefer providing money for the new franchises over other new businesses since they already have trust in the brand and business model of the business being funded.

Considering there are options available to serious, credit worthy applicants, objection of no money can be resolved if the lead sees the true value of franchise ownership for them. The fear of financial risk can also be countered by resolving the next possible objection → No trust, which we will talk about in the next post.

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Dmitriy Lobanov

I help franchises grow by optimizing franchise marketing initiatives and generate franchise leads. I share my marketing knowledge online and through events in various parts of the world. Connect with me on LinkedIn.