How the Franchisee Validation Process Increases Organic Leads

The franchisee validation process is one of the most important parts of signing on a new franchisee. The validation stage not only acts as a crucial turning point in the discovery process for prospective franchisees, but also helps franchisors in the development stage by bringing in more organic leads.

“Franchisee validation helps both the prospect and the franchisor during the discovery process,” said Wag N’Wash president Rob Flanagan. “First and foremost, the franchisee validation is in place to protect prospective franchisees who are looking into multiple concepts. It presents a transparent depiction of the franchise opportunity that is not controlled by the franchisor.” 

While a franchisor can’t discuss specific numbers outside of Item 19, franchisee validation is an opportunity for prospects to get a clear understanding of the financials. “In a way, franchisees are the best ones to discuss the business opportunity,” said Flanagan. “If existing franchisees are willing to speak about basic, unit-level profitability, it can be extremely helpful for bringing in organic leads.”

Each brand may go about the franchisee validation process differently, but typically prospects engage with established franchisees during the discovery day process. “Some franchisors provide a list of all existing franchisees in the FDD but most brands have a set of names who have agreed to pick up the phone and talk to franchisees,” said Flanagan. “It is very important to respect the time of the franchisees who are willing to talk. Some brands will set up a scheduled conference call or host a webinar that a group of franchisees can hop onto.”

An organic lead is a house lead, which means it is generated thanks to someone’s interest, not just through a portal. If franchisees are doing well and their expectations have been exceeded during the process, their validation provides a kind of free marketing. “In the same way that a happy customer may spread the news about a favorite brand, franchisee validation really helps drive those organic leads,” said Flanagan. “For example, when a new prospect talks to a happy franchisee in their area and learns about their experience, it drives them to research the brand online and fill out a lead form.”

Franchisee validation is also beneficial for the franchisor as it can help identify the most qualified prospects from a larger pool of applicants. “Before the final steps of signing on a new franchise partner, we like to call up the franchisee they spoke to and ask their opinion—is this a person they’d feel proud to work with? The franchisee validation process provides valuable feedback that may not have been accessible otherwise. Understandably, prospective franchisees tend to present a more genuine picture of themselves when they are talking to established franchisees rather than the corporate team.”

In addition to helping bring on more qualified franchise partners, the validation process is a great way to generate content. In our social media age, content is king, and franchisee testimonials are extremely effective when it comes to digital marketing.

“One of our field representatives was out in one of our stores recently and took some quick videos on their phone of a successful franchisee,” said Flanagan. “We did some quick edits, uploaded it to our Linkedin page, and now we have powerful testimonials available to anyone interested. This content can also be used in social media campaigns and local marketing efforts.”

Still, Flanagan notes that franchisors need to be careful of misrepresenting the opportunity through heavy editing or misleading information. “Remember, a franchise partnership is usually a ten-year relationship, so make sure that the prospect is receiving a transparent depiction of the brand during the validation process,” he said. “Overall, franchisee validation helps tremendously with bringing in new prospects and giving them an honest insight into the franchise opportunity.”