Growing a Franchise
A strategic, relationship-driven approach to franchise sales leads to stronger, more successful franchise systems. Here’s what you need to know to build and execute a successful strategy.
Franchisors want to sell franchises — that’s broadly accepted. But how they do it varies. The success of franchise sales depends on a carefully crafted development strategy. While some teams view interest from prospective franchisees and the number of signed franchise agreements as key metrics, what they should really care about is creating successful franchisees, and doing that begins long before that initial contact.
“Part of what you have to do as a franchisor is look at your own data and goal set based on that,” said Nick Powills, chief growth officer of Mainland*. “It starts with understanding what you can do and what is responsible growth for your organization.”
Responsible growth doesn’t happen by accident. It takes intentional planning, honest reflection and a clear set of steps to build a system that is both scalable and sustainable. Franchisors need to understand the roadmap ahead — from identifying the right candidates to equipping them for success. That means knowing what responsible growth looks like for your brand, and how to achieve it through the right strategy and support.
Stay tuned through May for 1851’s Ultimate Guide to Selling Franchises, where we’ll cover everything from clarifying your brand positioning to maintaining momentum after a new signing. Whether you’re refining your development strategy or scaling your system, this series will provide the insights you need to grow with confidence.
In the competitive world of franchising, clearly communicating your brand’s unique position is essential to attracting the right franchisees. Two pivotal questions — “Why You?” and “Why Now?” — can guide franchisors in crafting a compelling narrative that resonates with potential franchise investors.
“Why you? Why would anyone want to buy your brand? And why would they want to buy it now?” said Powills. “The ‘Why You?’ should showcase a point of differentiation, particularly against competition. And the ‘Why Now?’ should create some FOMO to say, ‘Look, if we sell out this market, you’re not going to have the ability to buy into it.’”
Understanding why prospective franchisees should choose your brand over competitors is foundational to franchise positioning.
Franchisee candidates don’t buy into a brand solely for its revenue potential. They want to know what it’s like to be part of the system. This includes whom they’ll be working with, what kind of people they’ll be surrounded by and how the culture will shape their experience.
That culture shouldn’t just be something you mention in passing — it should be a core part of the sales conversation.
“Franchise buyers will say that culture and business model are the things that push them over the edge to say yes. Nothing else,” Powills said. “Culture tends to be the leadership team that supports the franchisee, and the business model ends up being the product, the vision, the cost to get in, how much they can make, where you’re growing and the franchisees who have already validated this business model.”
When it comes to selling a franchise, a strong value proposition can make the difference between a lead and a long-term partner. Jenny Young, founder and CEO of Brooklyn Robot Foundry, believes the foundation of any value proposition starts with knowing who you are — and ensuring your entire team does, too.
Young didn’t start Brooklyn Robot Foundry just to teach STEM (science, technology, engineering and mathematics). She started it to build a business that empowered everyone involved, from students to franchisees, and made sure their voices were heard.
While this kind of mission-first, consumer-focused approach may seem like it’s geared more toward families than franchisees, it can actually be a powerful selling point. Prospects want to invest in a brand that has purpose — one that resonates with their own values and shows real impact in the communities it serves. When a brand’s consumer value is clear and authentic, it naturally enhances its franchise value.
“In today’s world, there’s a lot of competition, and most franchisors are all going after the same person,” Powills said. “You want to make sure you have a clear point of differentiation. Typically, that swings a little bit more on the consumer side, but you’re going to want that in your sales toolkit to win at selling franchises.”
Prospective franchise owners aren’t just comparing startup costs — they’re weighing the long-term value of each opportunity. To stand out, brands must do more than pitch numbers. They need to clearly articulate how their investment compares to others in the industry, from support systems and scalability to market positioning and service differentiation.
“Start with the right lens — why would a client choose you over someone else?” said Mitch Benson, franchise development manager for A Place At Home. “When evaluating a franchise investment, one of the smartest ways to assess true value is to flip the perspective: Don’t just ask, ‘What’s the startup cost?’ Ask, ‘Why would a customer choose this brand over a competitor?’”
Powills suggests using AI to benchmark your investment against others in the space, pulling from things like published Item 19s, states available and cost to get in, for a fair and neutral evaluation. “ChatGPT is a fantastic tool for doing so,” he said. “You can ask it to benchmark to get solid competition based on the cost.”
Once you understand how your franchise compares on the numbers, it’s just as important to compare it through the lens of the customer. If your investment is higher but your consumer value proposition is significantly stronger, that can be a compelling advantage. But if the price tag is similar and your consumer offering doesn’t stand out, it may be time to reassess.
Item 19 in the Franchise Disclosure Document (FDD) is one of the most scrutinized sections for prospective franchisees. A strong, transparent and legally compliant Item 19 can be the key to attracting serious candidates while maintaining trust and credibility. In this article, Charles Internicola — founding partner of Internicola Law Firm — shares his insights on what makes an Item 19 compelling, compliant and a powerful sales tool.
A well-crafted Item 19 should go beyond just listing financial numbers; it should paint a clear picture of the economic potential of the franchise. Prospective franchisees want to see not only revenue but also profitability trends and cost structures.
"On the compelling front, an Item 19 must reflect the economic story and opportunity that a franchise offers,” Internicola said. “Generally, this means that the Item 19 should include data that allows a franchise buyer to understand sales and sales trends, costs — including data about cost of goods sold, profitability potential and ROI potential.”
“As much as I say you need to have a marketable Item 19, so that it tells a great story, it has to also tell the right story,” Powills said. “If validation starts shifting, then you’re going to have challenges.”
Previously, franchise candidates would notice a brand in an industry publication, such as Entrepreneur, and proceed to inquire with the franchisor. Now, the more discerning buyer requires additional exposure. Creating a “drumbeat” and building an emotional connection through steady press coverage boosts confidence among prospective owners and keeps your brand top of mind.
“We've done research and have found that the most impactful use of PR is when it's done weekly—some brands can afford that,” said Powills. “Look at how much capital you have to deploy it, but into that process and into your drumbeat as close to weekly press as possible, that's gonna help set up where the business will go and build a content strategy.”
When building a content strategy to sell franchises, brand storytelling still matters — but only if you know when to shift into the hard facts.
"Go back to my original point about how much capital you have to deploy, and invest it into building a consistent drumbeat of weekly press,” said Powills. That’s going to help set the foundation for where the business will grow. Your content strategy should include positive news, counter-content, and research-driven pieces.”
It’s not a one-size-fits-all process. The best franchise development teams guide candidates through a layered experience that evolves alongside their decision-making.
“I believe that balancing brand storytelling with detailed information is all about meeting candidates where they are in their journey,” said Hannah Swanson, franchise development coordinator at Pigtails & Crewcuts. “That’s where [Vice President of Franchise Development] Michelle Holliman and I make a great team. Part of my initial process when educating candidates on our opportunity is focusing my conversations on the emotional connection of Pigtails & Crewcuts, sharing the heart behind our brand through storytelling. Whether it’s a franchisee’s personal journey, the joy we bring to families, or the rewarding lifestyle of our owners, I help candidates see themselves as part of our community.”
Franchise development is an investment game requiring strategic thinking and patience. For new and experienced franchisors alike, understanding the true value of each franchisee relationship is essential to building sustainable growth.
“The key data point is deal value,” Powills said. “Deal value can be attached back to what this will really be worth for your organization. I take three years of royalty — forget about the franchise fee, use that as cost of acquisition — whether that’s $15,000 or $150,000. Typically, franchisors don’t take a responsible amount of that to go get a good return on investment.”
While the upfront costs of acquiring a new franchisee are certainly something to consider, it should not be the only variable with a spotlight on it.
"We obviously invest a considerable amount of money to get quality candidates on all the channels between PR, social, website, broker networks and organic referrals,” said John Pantera, vice president of franchise development at Radiance Holdings. “It usually costs us a significant amount. We get a nice injection of cash when they sign on because they pay the initial franchise fee, but a lot of that money just goes back to the cost of obtaining that candidate. It's almost a wash."
Understanding the value of a franchisee long-term will allow you to hone in on the true deal value and make responsible investments in the franchisee acquisition process.
Effective franchise development hinges on nurturing leads thoughtfully and strategically. Drip campaigns — automated email sequences designed to guide prospective franchisees through the discovery process — are vital to turning leads into franchise owners.
“When a lead comes into your site, do you have a campaign set up to nurture them?” said Powills. “In my opinion, it can be something simple — an email that says, ‘Hey, thanks for inquiring. When can we set up a time to talk?’ Nothing overly salesy. These days, people are more likely to text or email than take phone calls. It used to be a race to the phone, but I’m not sure that’s necessary anymore.”
According to Erica Tarnowski, franchise development director at Aroma Joe’s Coffee, the most critical step in nurturing leads is the initial connection. "As far as connecting and making sure you are nurturing leads, it's usually not the closing of the deals that is the problem, it's the initial conversation," she said. "My goal is always to learn as much about the candidate and their motivation as I can."
Not every lead is a perfect fit, and identifying early signs can save valuable time. "There are some candidates you want to fall off,” Tarnowski said. “You can get a good first impression that tells you a lot about what you need to know about them moving forward.”
In today's digital-first world, your franchise development website isn't just a digital brochure. It's often the first meaningful interaction potential franchisees have with your brand.
“There are two easy things to focus on: First, do you have a form at the top of your site? Are you giving the buyer a choice? Instead of just saying ‘Call now,’ give them options — like downloading an informational guide or scheduling a call,” said Powills. “Don’t make it a requirement to get on the phone right away. That’s often when a franchisor assumes a candidate is dead, when really they’re just not ready to talk yet.”
Creating a website that not only informs but actually converts visitors into qualified leads requires strategic planning, thoughtful design and authentic messaging that resonates with your ideal candidates.
"The most important element to include on any franchise development site — and this may seem obvious — is content that truly resonates with prospective franchisees," said Casey Matthews, director of franchise development at United Franchise Group. "That means sharing stories from our current franchise owners: how they got started, what attracted them to the business and what they were doing beforehand — which is often something completely different."
Matthews emphasizes that authenticity creates connection: "We believe that when franchise candidates see and hear real stories from people like them, it becomes much easier for them to picture themselves in the business."
For any business, digital marketing isn’t just helpful — it’s essential. In franchise development, the teams that take the time to build a solid marketing foundation can significantly improve their visibility, lead quality and conversion rates. But setting up a successful digital marketing strategy takes more than just a few paid ads.
“I’d recommend starting small with how you deploy your budget, but over time, you want to build momentum — that snowball effect — so you’re maximizing your spend across digital channels,” said Powills. “Today, platforms like Facebook and even trade magazines are trying to get in front of your target persona in compelling ways. You can also align your model with other relevant personas. And every time you sign a new franchisee, make sure you're connecting the dots — break down the silos and amplify the noise. Let people know what’s happening.”
Before you spend a dollar on paid ads or outreach, it’s crucial to ensure your digital presence is fully optimized and aligned across all platforms. That includes everything from your website and Google business listings to your social media channels.
Ashley Reynolds, director of marketing at Layne’s Chicken Fingers*, emphasizes the importance of cleaning up the digital foundation before launching into promotion. “It’s been tying up all of our digital presence first,” she said. “Taking a look at our Google business listings, our website, even our social media to a certain degree… just making sure everything is ready to be promoted.”
In today’s digital-driven landscape, a robust and strategic social media presence is crucial for franchise brands aiming to attract and engage franchisees and customers alike. Effective management of your brand's social media drumbeat can enhance visibility, foster community engagement and significantly boost growth.
Joey Gonzalez, president of Chop Stop Salad Company, highlights one of the biggest pitfalls franchise brands face on social media is inconsistency in quality content and posting frequency. “A scattered or uncoordinated social media strategy across franchise locations can dilute the brand’s message and weaken engagement,” he said. “To avoid this, it’s essential to establish brand-wide social media guidelines while allowing room for localized content that resonates with each community.”
Maintaining a consistent voice and regular posting schedule ensures the brand message remains clear and engaging. Franchise brands should provide clear guidelines to make sure every location presents a unified brand image while allowing the flexibility to cater to local audiences.
Webinars have become a powerful tool in franchise development, offering a low-pressure way to engage cold leads and share the brand’s story. By inviting prospects to listen in on conversations between franchisors and franchisees, brands can re-engage leads and repurpose the content across other marketing channels. Setting clear expectations for prospective franchisees is key — it can be the difference between winning and losing in franchising.
“Webinars have been a tremendous tool for us,” said Powills. “They give cold leads a chance to passively engage and hear real conversations between franchisors and franchisees. Plus, the content we generate from webinars can be used across all our other marketing channels. At the end of the day, setting clear expectations — that’s what separates winning brands from those that struggle.”
According to Matt Kelton, vice president of franchise development for Children’s Lighthouse, a successful webinar should “walk them through the brand story, the history, how the model works, what it costs to get into the franchise and what it looks like to go through the opening process.” Kelton emphasizes that the presentation should bring the brand to life visually and culturally. “We’re sharing lots of photos, showing franchise owners, showing schools and letting them know about our culture and what we’re all about,” he said.
Setting the right expectations during franchise development is crucial not only for attracting the right franchisees but also for ensuring long-term success and satisfaction on both sides of the franchisor-franchisee relationship. Clear communication about growth goals, financial realities and operational expectations helps prevent misunderstandings and frustration down the road.
“Expectations need to be set properly,” said Powills. “They continue to validate the right support group and everything they’re going to do. It’s a sales process — and now you’re going to help them scale and build wealth for their family. Those that come in and sell too high end up creating an issue because the performance of the franchisee doesn’t align with the team. Sometimes, the frustration and misaligned expectations can impact what happens next.”
To effectively set expectations, franchise development teams must first clearly identify their brand's potential and limitations.
"Setting realistic growth goals for the development team is all about understanding your brand’s strengths and its limitations," said Kelli Schroeder, vice president of franchise development at Threshold Brands. "It’s about being clear on the resources needed to support that growth so each new unit is set up for success, not just for the short term but for longevity."
In franchising, few steps are more influential in the sales process than franchisee validation. This is the stage where prospective buyers are encouraged to connect directly with existing franchise owners to ask questions, gather insights and hear firsthand what it's really like to operate the business.
“Frankly, if you’re a friend of mine and I tell you it’s time to invest, that value is probably more qualified than a broker lead,” said Powills.
These conversations often cover everything from financial performance and support systems to day-to-day operations and brand culture. For emerging brands without a long history or large national footprint, strong franchisee validation can be the difference between a candidate moving forward or walking away. It's an opportunity to build trust — not just with the franchisor, but with the people actually living the model.
“Create a strong incentive,” said Powills. “It fascinates me how much money we're going to give franchise brokers to help us go get franchisees, yet we're not going to give our franchisees incentives to help us.”
By incentivizing peer-to-peer referrals, franchisors can generate high-quality leads while strengthening the culture of the system. Instead of relying solely on outside brokers, consider giving your franchisees a $2,000 referral bonus — or better yet, let them roll that money back into their own local marketing fund. That kind of support benefits everyone and can ultimately improve your brand’s bottom line.
Franchise expos offer a rare, in-person opportunity to connect with a high volume of qualified prospects and brands all in one place. But showing up isn’t enough — you need to have a strategy. Whether you're a potential franchisee scoping out your next venture or a franchisor looking to attract leads, here’s how to make the most of these events.
For potential franchisees, a franchise expo is like speed dating for your future business. These events gather dozens — sometimes hundreds — of brands under one roof, offering an unmatched chance to compare opportunities, industries and support systems up close.
"If you go to a franchise expo, you'll see a plethora of brands all trying to get that one person walking the floor to say, 'I'm interested in buying that brand.' You need to make sure you have a clear point of differentiation,” said Powills.
Effective franchise development is built on clear, realistic expectations. Setting appropriate expectations with both internal team members and franchise candidates ensures alignment, avoids misunderstandings and creates a foundation for long-term success.
Scott Oaks, vice president of development at Comfort Keepers, emphasizes that internal alignment is key: “Having reasonable expectations and understanding as an organization what success looks like short term and long term ensures a sustainable business. How many signings will generate the necessary royalty revenue for you for the next 20 years?”
This transparency helps both franchisors and franchisees enter partnerships with eyes wide open, reducing potential disappointment and frustration.
Having a solid development budget is just as important as having a great concept in franchising. Too often, brands set ambitious sales goals without the financial roadmap to reach them.
"When it comes to sales, I’ve said this from the beginning: budget properly to get there. Without the right budget, you create false expectations about performance, which leads to burnout,” said Powills. “Your sales team can be huge advocates for what you're trying to accomplish — they're on the front lines, talking to people and helping close deals. If they're important, make sure you budget properly."
Whether you're an emerging franchise or an established player looking to expand, budgeting for franchise development requires clear objectives, accurate data and a realistic understanding of what it takes to close a deal.
Before putting numbers on paper, franchises need to assess their current position. This analysis helps brands set a realistic foundation. For example, if you’ve sold five franchises annually for the past few years and you’re aiming to double that number, your budget will likely need to grow accordingly.
“Your budget should be predicated on what you're trying to achieve from a sales and opening perspective,” said Ardag Tachian, senior director of franchise development at Keke’s Breakfast Café.
A new franchisee signing is more than a win — it’s an opportunity to build momentum and drive demand. “Franchisees are the pathway,” said Powills. “Buyers want to buy it.”
Every time a franchise signs a new owner, it’s more than just another contract. It’s a chance to build momentum, showcase success and create a powerful sense of urgency for future prospects. In today’s competitive landscape, franchisors who know how to leverage these moments can drive faster growth and fill territories before competitors have the chance.
From celebrating wins on social media to encouraging validation conversations, the smartest brand*s treat each signing like a marketing event.
Each signing signals growth, making it easier to attract future candidates. But giving away too much territory too soon can backfire. “Most candidates want to buy the market,” Powills said. “If it’s already sold out, you lose the opportunity to compound your presence.”
More franchise units in a market boost visibility, average unit volume and future sales potential. Use each signing to reinforce your brand’s strength — and build on it.
The true measure of franchise development success isn't just how many units you sell, but how many successful franchisees you create. A development program that produces engaged, profitable franchisees who become brand ambassadors generates exponentially more value than one focused solely on hitting unit count targets.
“Understand that franchising is a completely different business from the consumer core,” said Powills. “It's almost like you have two different businesses and going into it you have to capitalize it properly — and it's going to be uncomfortable. There's nothing in franchising that is guaranteed.”
By rejecting the short-term strategies that focus on vanity statistics in favor of comprehensive development planning, franchisors don't just sell more units — they build stronger, more resilient systems that can weather economic uncertainty and capitalize on opportunities for decades to come.
“You don't have to get everything done at once,” said Powills. “Just make the progress, especially if you want to award more franchises that scale. A franchisee that opens and grows has tremendous value back to your organization. Take credit for that. Make sure your leadership team understands the value of new blood coming in. And eventually, because you get this energy going, the machine is going to drive more candidates in so you can continue to grow your brand.”
Growing and selling franchises is difficult. No great franchise did it alone. Want to learn more about how 1851 helps franchisors grow their franchises with confidence? Visit www.1851growthclub.com and see what we can do for you.
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