1851

When it comes to successful franchise sales, outsourcing can be an attractive option for brands that are struggling to grow organically, but it isn’t an ideal strategy for every franchise.&nbsp;Since purchasing a franchise is such a big investment, the franchise sales process requires a high level of salesmanship and finesse. A franchise sales outsourcing (FSO) company takes on the franchise sales from beginning to end,&nbsp;<a href="https://1851franchise.com/the-secret-to-closing-on-franchisee-leads-2715447">handling leads</a>,&nbsp;<a href="https://1851franchise.com/how-to-build-an-fdd-when-franchising-your-business-2715471">managing documents</a> and even taking care of the&nbsp;<a href="https://1851franchise.com/10-steps-to-a-killer-franchise-discovery-day-2713810">Discovery Day</a>. That is why many franchisors looking to increase their unit numbers and enter new markets have turned to outside agencies or sales groups to handle the franchise sales process.The question is: Does outsourcing work better than creating an internal franchise development team? The answer likely depends on the goals of the franchisor. Emerging brands that are looking to generate 15 deals or less, for example, probably don’t need a full-time development employee. Instead, hiring an FSO can save them money, while also ensuring the brand can reach a certain unit count in a faster time frame without sacrificing on the critical franchisee support required for a healthy system.“The franchisor needs to prove to franchisees that this is a wise investment, and the support of the franchisees has to be immediate,”&nbsp;<a href="http://franchisedynamics.net/robert-stidham/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=does-outsourced-franchise-sales-work-2718851" target="_blank" rel="nofollow">Robert Stidham</a>, CEO and president of&nbsp;<a href="http://franchisedynamics.net/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=does-outsourced-franchise-sales-work-2718851" target="_blank" rel="nofollow">Franchise Dynamics</a>, told&nbsp;<a href="https://1851franchise.com/the-benefits-of-outsourcing-franchise-sales-3248#stories">1851 Franchise</a>. “You have to grow your system—those who invested and see a community that isn’t growing start questioning their investment. In the real world, growing the business is important, and since it’s not immediate, that often gets pushed down below operational excellence. Most franchisors aren’t growing over 100 units, and most plateau there because they don’t know how to balance running the business with growing the business. In our business model, we take that burden off of people so they can grow while they can focus on improving the business and operations.”The success of outsourcing franchise sales will also depend heavily on the specific FSO. Qualified&nbsp;<a href="https://1851franchise.com/franchisebrokerawards">brokers</a> have been in the industry for a while and are able to lean on their relationships for lead flow and content sales, which can help accelerate the development process. However, the wrong broker may simply go after low-hanging fruit just to complete the project.“Don’t hire someone who has been successful in sales — find someone who is experienced in&nbsp;franchise sales,” said Stidham. “Franchising is a highly regulated industry, especially the sales process. In most concepts you’re asking the buyer to walk away from their job and invest everything they own with people they don’t know, and generally they can only give limited information on the financial investment and returns. It’s much harder than it looks.”Brokers that are solely focused on quantity of leads as opposed to quality are likely to generate a lot of&nbsp;<a href="https://1851franchise.com/your-leads-are-worthless-target-prospects-not-leads-2704959">bad leads</a>, which may result in unqualified franchise owners who will cost the franchisor time and money in the long run. That’s why it’s so important to thoroughly vet brokers in the hiring process and ensure they have a history of bringing in high-quality leads for reputable brands.“Many folks underestimate the complexity and time commitment to sell franchises in even a low level,” said Stidham. “We are helping launch and grow new concepts every year&nbsp;— and it took us time to figure out the right formula for success. It’s a very long sales cycle. For new franchises there isn’t good and strong validation yet. Many CEO’s just can’t invest the time that’s needed. If you don’t have people who know what they’re doing, you’re going to run into a lot of problems.”For brands that are looking to expand their footprint the right way, outsourcing franchise sales does indeed have the potential to work well, but only if the brokers involved are prepared to do what is best for the brand and each individual owner. By doing their due diligence and plotting out any long- and short-term goals before proceeding with the franchise development process, franchisors can determine whether outsourcing franchise sales is the right strategy for them.

Does Outsourced Franchise Sales Work?

1851 Franchise

Especially for emerging franchise brands just starting to grow their footprint, a franchise sales outsourcing company can be a valuable resource and help handle leads, manage documents and more.

does-outsourced-franchise-sales-work

Fresh Coat

Fresh Coat Painters representative stands, smiling, in front of a white house with black shutters

Weathering the Seasons: How Fresh Coat Franchisees Achieve Year-Round Success

weathering-the-seasons-how-fresh-coat-franchisees-achieve-year-round-success

HomeTeam Inspection Service

HomeTeam Inspection Service - Bundled Inspections - 1851 Franchise

Bundle Up and Save: HomeTeam Launches Bundled Pricing for Savvy Homebuyers

bundle-up-and-save-hometeam-launches-bundled-pricing-for-savvy-homebuyers

Woodhouse Spas

Grid photo featuring headshots of the 9 members of Woodhouse Spas' leadership team

Meet the Leadership Team Driving the Woodhouse Spas Franchise Forward

meet-the-leadership-team-driving-woodhouse-spas

Three Fresh Coat Painters representatives stand, smiling, outside a home in Fresh Coat polo shirts

The Heart of Fresh Coat: More Than Just a Painting Franchise

the-heart-of-fresh-coat-more-than-just-a-painting-franchise

Uni K Wax

Entrepreneur: Why This Executive Bought Uni K Wax to Lead Its Growth

entrepreneur-why-this-executive-bought-uni-k-wax-to-lead-its-growth

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

Login

facebook

instagram

twitter

linkedin

youtube

1851 Agg - Empower Brands 6 Franchises Named to FBR's 2025 Top Franchises List - 1851 Franchise

Empower Brands Celebrates Six Franchises Named to Franchise Business Review’s 2025 Top Franchises List

empower-brands-celebrates-six-franchises-named-to-franchise-business-reviews-2025-top-franchises-list

DOJ FTC Antitrust Guidelines - Franchise News - 1851 Franchise

DOJ and FTC Issue New Antitrust Guidelines with Implications for Franchising

doj-and-ftc-issue-new-antitrust-guidelines-with-implications-for-franchising

Paris Baguette Ranks Among Top Franchises on Entrepreneur’s Franchise 500® for 2025 - 1851 Franchise

Paris Baguette Ranks Among Top Franchises on Entrepreneur’s Franchise 500® for 2025

paris-baguette-ranks-among-top-franchises-on-entrepreneurs-franchise-500-for-2025

Yum Brands - KFC - Pizza Hut - Terminates Franchise Agreements in Turkey - 1851 Franchise

Yum! Brands Terminates Franchise Agreements in Turkey Due to Non-Compliance

yum-brands-terminates-franchise-agreements-in-turkey-due-to-non-compliance

Recent Franchise News - Why Franchisors Churn Through Marketing Suppliers - 1851 Franchise

Forbes: Four Reasons Why Franchisors Churn Through Marketing Suppliers

forbes-four-reasons-why-franchisors-churn-through-marketing-suppliers

Franchise Deep Dive: The UPS Store Franchise Costs, Fees, Profit, and Data

franchise-deep-dive-the-ups-store-franchise-costs-fees-profit-and-data

Trua Senior Living Locators CEO Discusses Franchising Success and a Clinical Approach to Senior Placement

trua-senior-living-locators-ceo-discusses-franchising-success-and-a-clinical-approach-to-senior-placement

Lindora’s New President Discusses Franchise Growth and the Future of Health and Wellness

lindoras-new-president-discusses-franchise-growth-and-the-future-of-health-and-wellness

Happy Joe’s President and CEO Discusses Turnaround and Vision for Legacy Growth

happy-joes-president-and-ceo-discusses-turnaround-and-vision-for-legacy-growth

Lucas Hamm Brings Compassionate Care to Eagan, Minnesota with Right at Home Franchise

lucas-hamm-brings-compassionate-care-to-eagan-minnesota-with-right-at-home-franchise

How a Hotel Valuation Expert Accidentally Found Success with the Sola Salons Franchise

how-a-hotel-valuation-expert-accidentally-found-success-with-the-sola-salons-franchise

Navy Supply Officer Purchases Right at Home Franchise in Virginia Beach 

navy-supply-officer-purchases-right-at-home-franchise-in-virginia-beach

Right at Home Comes to Long Beach, Driven by Franchisee’s Personal Experience in Caregiving

right-at-home-comes-to-long-beach-driven-by-franchisees-personal-experience-in-caregiving

Bringing French-Inspired Flavor to Ohio: Franchisee Expands Paris Baguette in Ohio

Bringing French-Inspired Flavor to Ohio: Franchisee Expands Paris Baguette in Cincinnati and Columbus

franchisee-expands-paris-baguette-in-cincinnati-and-columbus-ohio

Does Outsourced Franchise Sales Work?

MORE STORIES LIKE THIS