How To Get Your Franchisees To Sell For You

The secret to selling franchises is simple: have happy franchisees who are making tons of money. Sounds easy, right? Just master a business concept, flawlessly apply it to the franchise model and then have dedicated franchisees excel at executing on the vision.

OK, so it’s not simple at all, but it is critical. The great thing about franchising is that, if a concept works, it will have happy franchisees singing its praises. 1851 Franchise has extensively interviewed franchise development professionals and found a near consensus: The best selling point you can have is strong validation from franchisees. For franchise candidates, happy franchisees is one of the top things you should look for in a brand. 

So how do you get there? 

Let The Right Ones In

Virtually every franchise sales expert we talk to says the same thing: You have to know what the ideal franchisee looks like to target and attract them. Do this by creating a detailed profile of the ideal franchise sales based on the specific needs of the industry and the company culture. 

“First and foremost, you need to have a clear understanding of who you’re trying to bring on as a franchisee and who your ideal franchisee is,” Scott Wendrych, CDO of FYZICAL Therapy & Balance Centers, a 400-plus unit physical therapy franchise, told 1851. “That could be an owner/operator, an entrepreneur or a business person with a corporate background. Once you understand that, understand the target markets you’re trying to develop in. It’s easy to grow and develop if you have a plan around where you do and don’t want to grow. That leads to the ability to be very targeted with your marketing and reaching out to franchise candidates and how you’re going about getting those people to pay attention.”

Above all, be willing to say no to the wrong franchisee. Someone who is undercapitalized or incapable of meeting the demands of the job will only get into trouble later.

“Make sure you’re being super selective about who you take on as franchisees and be willing to say no to someone who doesn't look like a fit,” Mark Siebert, an esteemed author and the founder of iFranchise Group, told 1851. “Some franchisors sell franchises to individuals that don’t have all the necessary skill sets or are not well-capitalized. They run the risk of a failed franchisee, and nothing sinks a system faster.”

Train and Support

Once you start finding qualified prospects, next consider how the marriage between the franchisor and franchisee will play out. Even the best, most qualified candidate will fail as a franchisee without the right support. 

“For me, the most important thing a franchise company can do is have really great tried-and-true training,” Terri Harof, director of franchise development at Workout Anytime, a 24-hour fitness franchise with 176 units, told 1851. 

This means that a franchisor needs to balance its franchise development team against its franchise support team. In short, don’t sign new franchisees faster than a support team can ramp them up into profitability. 

Have a Winning Concept

Franchisees won’t succeed if the underlying business concept doesn’t work in the area or market. 

Brett Larabee, director of international development for Little Caesars® Pizza, told 1851 that the key to consistent franchise growth comes down to “understanding how the business model works in different environments.”

“Once you have a keen understanding of that, you understand how it’s going to work differently in different demographics,” he said. 

Larabee has extensive international franchising experience, so he pays special attention to what concepts work there and how franchisors can adapt to different markets. 

“For instance, if your business is in the Midwest, once you get out to the West Coast or the East Coast, your customer is going to be different. There are going to be different competitors, different economic and socioeconomic demographics. Be aware of those idiosyncrasies in those different areas and allow yourself the flexibility to meet the specific markets needs,” he advised. 

Know Your Story By Heart

Happy franchisees become evangelists for your brand because they know and understand the brand’s unique selling points and what makes it great. But a franchisor can’t rely on franchisees figuring this out themselves, the story needs to be told concisely and clearly. 

“It’s good to know your unique selling proposition and communicate that clearly,” Bobby Brennan, vice president of franchise development at Franchise FastLane told 1851. 

“Franchise development is really about storytelling,” he said. “You want to create raving fans and raving franchisees? Have incredible customer experiences and services. When you create fans, you’ll get more attention. Franchisees that feel supported want to share their success, and that creates a snowball effect. Being a good storyteller is key.”