How to Find the Right Franchisees for Your Brand

The role that franchise development executives play has always been critical in determining brand growth. From the first inquiry, franchise development teams guide candidates to decide whether or not a business ownership opportunity is the right one for them. However, over the course of the past few months during the COVID-19 crisis, this role has become even more invaluable.

While some entrepreneurs are waiting until the crisis is over before signing an agreement, the way that franchise development teams nurture leads now will make or break their success in the future. During 1851’s #TheGreatFranchiseReturn virtual summit in May, TruBlue Total House Care president Sean Fitzgerald explained that in order to be successful, franchisors need to fill their brands with people who genuinely care about the product or service that they provide.

“You have to have passion about the brand, and you have to be able to coach people through the process, not just sell them on it. So, you have to sell them on your concept, you have to sell them on the industry and then you have to coach them through actually jumping off that bridge and doing it,” Fitzgerald said. “A lot of times, if you just sell, sell, sell all the time [without] building a relationship and understanding the due diligence that the person’s going through and helping them through it, then that’s where a lot of candidates will drop off.”

Brands also need to be willing to put their money where their mouth is when it comes to attracting the right franchise candidates for their businesses. While the cost per lead varies from industry to industry, franchisors need to be willing to make a significant investment to develop their brands.

Bob McQuillan, vice president of franchise development for Hand & Stone Massage and Facial Spa, said, “If you’re an emerging franchisor, your acquisition cost is going to vary. The good news is, if you’re an emerging franchisor, you have the world as your landscape.” He later added, “The rule of thumb is approximately [that] your acquisition cost is going to boil down [to], give or take 20%, somewhere around the $10,000 mark. That’s been my 20-plus year experience having played in this game for that long.”

With an investment that significant, Steve Beagelman, president and CEO of SMB Franchise Advisors*, added that it’s up to franchise development teams to make the most of the money spent throughout the development process.

“It’s really important — you’re spending all this money to generate the lead, to get the person interested in your brand, and [you need] somebody who’s going to take that lead through the process the right way and qualify them and make sure they understand all the steps that they need to go through to make sure that they’re a  right fit for your brand,” said Beagelman. “It’s not just about making sure they love you, but you have to love them as well. Because it’s a relationship you’re getting into with this franchisee.”

Ultimately, finding the right franchisees comes down to knowing your target candidate and then knowing exactly how to reach them.

Fitzgerald said, “You’ve got to look at what everybody’s doing. For the last two months, everybody’s been in their home. So, we focused heavily on digital and social because we knew that they’re on their phones or devices and they’re bored. They’re inquiring. They know that they can’t come and visit you, and maybe they don’t want to talk to you, but man, what a great opportunity to get opportunity and get awareness to people.”

He continued, “You’ve got to answer the ‘whys’ and ‘why now.’ And if you don’t have a good story and a good answer to that, you’re going to have a hard time growing.”