The Pros and Cons of Outsourcing Franchise Development

The year 2020 has been a year full of challenges. Like so many businesses, franchises across the country have been looking for ways to expand in spite of unfavorable economic conditions, which is why so many franchises are turning to an outside source for franchise development.

Outsourcing can be a great option for brands that are struggling to grow organically, but it isn’t a catch-all remedy for every franchise. Dianna Bailer, vice president of operations with Franchise Performance Group, and Joe Mathews, the CEO behind the nation’s leading franchise marketing agency, offer insights into the pros and cons of outsourcing franchise development services.

Pro: Scalability

Brands that are looking to generate 15 deals or less don’t need a full-time development employee. Hiring a broker not only saves money, but sets a goal on the number of new locations to procure that can be obtained in a short period of time. 

Pro: Broker Relationships

Many brokers have been in the industry for a while, and with that comes a whole set of relationships. Brokers are able to lean on their relationships for lead flow and content sales, which can help accelerate the development process.

Pro: Customer Experience

If a brand hires a good broker, they’ll likely be working toward building a long-term relationship with the leadership team — even after the project is over, they’ll want brand leadership to turn to them the next time they decide to expand. With that in mind, a broker service will put customer service at the forefront of their work and provide broad service options and overall strategy guidance.

Con: Low Results

Brokers can sometimes be fickle. Working on multiple brands at one time can lead to an unbalanced focus on one brand over another. If a franchise is on the receiving end of this kind of neglect, it is likely the broker is producing mediocre results. That’s why it’s so important to thoroughly vet brokers in the hiring process.

Con: Uninspired Work 

If a brand chooses the right broker, lead generation of solid prospects is likely not a problem. However, the wrong broker may simply go after low hanging fruit just to complete the project. This kind of service will not benefit a franchise in the long run and may simply be a waste of money.

Con: Simply Numbers-Driven

Brokers that are solely focused on quantity of leads as opposed to quality are likely to generate a lot of bad leads. Brands that want high-quality leads should thoroughly review a broker’s work history and see what kind of brands they have worked with in the past — the higher the quality of the brands they work with, the more likely they are a trusted broker within the industry.

For brands that are looking for good development work in a pinch, outsourcing may be the best option. If a franchise is more concerned with quality, then a full-time development employee is the route to choose. Whatever path a brand travels, it's best to think about long- and short-term goals before proceeding with any hiring decisions.

For more information on Franchise Performance Group, visit https://franchiseperformancegroup.com/.