FranX | Santa, please get me more deals

The Next McDonald's (Big Idea)

Fortifying your Franchisee Lead Conversions

In our Bottom Thoughts, we provide a framework for adopting a data-driven approach to deploying your franchise development dollars…cost per lead… cost per deal… deal value…

Emerging brands have a tendency to overspend on lead generation (cost per lead) at the expense of lead conversions (cost per conversion). Before joining an arms race of ad spends, pay-per-click, portals, broker networks, and organic SEO, serious time, energy, and dollars should be devoted to building your lead CONVERSION assets.

Lead conversion assets become renewable and reusable brand assets. They tell the story of your brand, your why you / why now, the transformation that you offer, your validation, and unit level economics. These brand assets become deployable and valuable in each lead generation channel and, in time, convert deals and push down your cost per deal. The genuine story that you tell on your website becomes a part of the conversation with brokers, is viewed by leads, and forms the foundation of your franchisee lead conversion funnels.

Before spending your next dollar, check out your franchise sales website, media, and funnels:

• Do you offer a compelling brand story?
• Do you have compelling videos about your culture and leadership team?
• Does your Item 19 offer a deep dive into unit level economics?
• Have you developed robust funnels for tracking and engaging leads?
• Are you examining your data in real time?

It’s time to fortify your conversion processes!

News You Can (Actually) Use

• Damn, that burger costs a lot – menu prices reach 39-year high
• Minnesota Joins Lawsuit against McDonald’s franchisee alleging sexual harassment, misconduct

Killer Brands

Famous Toastery Relaunches Franchising with Plans to Double Its Presence to 50 Units by 2024

Franchisees continue to reinvest in the made-from-scratch better breakfast, brunch and lunch brand amid the pandemic due to a model dedicated to high-quality food that keeps guests coming back for more and a focus on each franchise location’s success.

There’s no better story than one of perseverance, and 26-unit Famous Toastery is telling a tale stronger than ever after, as it made it through the pandemic without sacrificing quality, and now has plans for more growth than ever. The better breakfast, brunch and lunch brand is poised to grow out of its headquarters market of Charlotte, closing out the Carolinas and further expanding into Virginia and Tennessee.

Facing the challenges of the pandemic, the franchise sustained its scratch-kitchen model and opened new three locations in 2020, as well as the brand’s first ghost kitchen, which is based out of Warrington, Virginia. It’s a testament to the value and continued growth that Famous Toastery has ahead that even individuals on the corporate team have chosen to purchase the franchise — its CFO Adam Gordon owns two locations and the executive chef Julio Heras owns two locations, as well. In addition, multiple franchisees have reinvested in the brand amid COVID-19.

Franchisees Kicking Ass: The Franchisee Is King

The Great Franchisee: Doug Campbell, Right at Home*, Frisco, CO

The career public health and drug research executive has started a new chapter with the fast-growing in-home care franchise.

Doug Campbell has made a career out of his concern for public health. Now, he’s leveraging that passion for a new chapter as a franchise owner within 654-unit in-home care franchise Right at Home*.

Campbell spent a quarter-century as an executive working in drug discovery research. After watching his grandmother suffer through dementia in a nursing home, he decided to shift his focus towards providing options for people to receive care at home. That’s what inspired Campbell to partner with Right at Home.

Yo Broker, Sell My Franchise

Don’t believe everything you read.

FranX did a Google search on “Best Franchise Brokers” and got this: https://www.google.com/search?q=best+franchise+brokers&oq=best+franchise+brokers&aqs=chrome.0.0i512j0i22i30l9.5607j0j7&sourceid=chrome&ie=UTF-8

If you are a brand that hasn’t used brokers, not sure this is the best way to start off – rather, start by connecting with your franchise industry peers who have found success at using the franchise brokers/broker networks and ask them where they have had the best penetration and experience.

Remember, when using a broker network, you are handing your reputation to them, and hoping they can tell your best story. Cut the deck before accepting your hand.

The Bottom Thoughts

Can money solve development challenges?

If you have enough money, can it drive more deals?

If you have the right budget, where do you spend it?

Probably the biggest issue with franchise development is that no matter how many people you ask (except for maybe some shady fella) what the secret to franchising is, the answer remains unknown. Fundamentals, essentially, are the key to positive growth.

What is positive growth? Onboarding the right franchisees who have the right mindset to scale your business.

The best franchise brands are those with the fewest franchise owners who own the most amount of units. These are the unicorns in franchising – the candidates (multi-unit owner) that every franchise brand wants and needs.

So, no matter the size of your franchise brand, things you should review:

Budget for this year:

Number of leads and cost per lead:

Number of applications and cost per application:

Number of deals and cost per deal:

Average royalty per open unit (so that you know what a year’s deal value is):

Number of franchisees / total franchisees who are interested in expanding:

Armed with YOUR data, you can now make smart decisions on how to deploy the right monies against the right goals.