Buying a Franchise Shouldn't Feel Like Buying a Car

by Steve Tanner

I bought a car this week from a dealership for the first time in seven years. After multiple trips, dealings with several people and countless headaches, I came to the conclusion that there are two types of sales – good and awful. And this translates well to the franchising world.

The point of sales is to solve a problem. The buyer has a pain, and the seller can cure that pain. It’s actually a beautiful concept.

“Good sales” reflects this problem-solving mentality. The buyer and seller agree on a transaction that is mutually beneficial and everyone walks away better off than before.

“Awful sales” occurs when there’s a breach of trust in the inherent “mutually beneficial” aspect of the transaction. For the seller, the goal is not about solving the customer’s pain but rather getting as much from them as possible. Which, in fact, ultimately adds to the pain.

My car buying experience was of this “awful” variety. Dealerships create a car-buying process that puts the buyer at a disadvantage from the outset. And while all the salesmen utilized age-old sales tactics, I was surprised by how many of them crossed the line into borderline immorality – blatantly lying, sneaking things into contracts, trying the bait-and-switch, etc. Ultimately I got the car I wanted at a price I wanted, so I’m happy with the outcome, but the game was overly tedious and left a bad taste in my mouth.

As I went through this process, I thought of my role as head of franchise development for TGA Premier Junior Golf. The auto industry is notorious for shady sales operations, and unfortunately the franchising industry doesn’t have a squeaky-clean image either. I regularly hear stories of franchise companies and their salesmen acting like the car folks I’ve been dealing with. And I wish that would change – which is a primary reason why I blog.

I approach franchise candidates as potential partners. They have a pain that I can maybe solve so I work with them to see if TGA is the right remedy. If it is, then I have someone who will be a strong partner for many years. If it isn’t, then I have to choose between taking the franchise fee and having a potential liability or turning the person away. I always opt for the latter. And we’ve setup mechanisms at TGA – including being a low-cost franchise and having the franchise salesman (me) being responsible for many post-sales operations (such as training and support) – to ensure that our franchise development efforts are aligned with corporate strategy.

There are many great franchise systems that operate like TGA and are interested in solving your pain in a mutually beneficial way. Unfortunately there are also plenty who operate like most of the car dealerships/salesmen I recently encountered. My suggestion is that if you ever feel an ounce of uneasiness about the ethics and intentions of the system, or the people, you’re talking to – run far away and don’t look back. They should always treat you like a potential partner and you vice-versa.

The decision to buy a franchise can be life-changing and there are a lot of good guys out there. With patience, due diligence and a healthy level of gut instinct, you’ll find the one who is the best fit for you. And when you do, you’ll have a solid vehicle to navigate, drive and support you on your journey for many, many years.

Steve Tanner
COO, Author of GolfEntrepreneur.com
TGA Premier Junior Golf

Learn more about TGA Premier Junior Golf at topfranchises.franchisebusinessreview.com.

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