Outdated Franchise Lead Generation Tactics: What Works and What Can Change

Finding qualified franchisee candidates is no easy feat.

Once you’ve weeded out the ones who have zero capital or just aren’t serious or committed enough to the venture, and you’ve got some real gems in front of you, then comes the hard part of getting them to take that final step and sign an FDD.

Franchise experts discussed lead generation tactics with 1851 Franchise and shared their thoughts on the franchisee-finding process today.

Eric Guess, the director of sales for ExecLeads, noted that companies can consider “just being aggressive within their own franchise network” and ask their existing franchisees for referrals. There are franchises that do this, he said, and “the results are pretty good. So I think that’s a big one.”

Social media networking is also important.

“I think networking through social media is important in this day and age,” Guess said.

Tapping into a network of people who are already franchising but in a different industry can also help.

“Even right now with the job market a little bit better than it has been finding candidates that are already franchise operators and maybe presenting them with a new franchise opportunity allowing them to add to their portfolio I think is a good method,” Guess said.

Natalie Nutter is the CEO and founder of 5th Avenue Leads. Companies looking to find franchisee candidates should look at a lot of different channels and options, she said.

“If something’s working, don’t get rid of it, obviously,” she said. “I don’t know if there’s anything particular that needs to be eliminated. I think a lot of different lead generation options work for different people for different reasons. And some of those don’t work for other people so you just kind of have to trust your gut as a franchisor and try different options before you start eliminating anything.”

Going to franchise expos is also a good idea, and Nutter noted there are a variety of them.  

“I think those are always good options to try,” Nutter said. “I talk to a lot of the franchisors there and the ones that are consistently going to those shows are consistently selling franchises, is what I hear. So I think those are kind of tried and true methods.”

Also, franchisors need to make sure they attend more than one franchise expo when looking for candidates.

“Keep trying them,” Nutter said. “Don’t just try one and say ‘It didn’t work.’ You’ve got to try the whole circuit and kind of see, because some cities are better than others. You can’t give up after you just try one or two times.”

Ultimately, every franchisor needs to employ “common sense and a gut check” and do what works for them, Nutter said.

“I think you should always look at multiple channels and try all the different channels and give all the channels an opportunity,” she said.

Also, franchisors need to make sure they are investing in their franchise sales efforts the same way they would invest in other parts of their business.

“Invest in your franchise sales just like you invest in your existing units,” Nutter said, adding that franchisors need to spend the right amount to be able to grow their business and that they need to invest in lead generation.

“You can’t go cheap on that,” Nutter said. “You have to market. You have to get leads.”

Regardless of how you look for franchisees, “You’ve got to be marketing your brand,” Nutter said.

A major shift is occuring in how data is collected, according to 1851 Franchise Chief Development Strategist Sean Fitzgerald.

“What I think the big shift in is measurement and what is truly measuring success for lead generation strategies,” he said.

He added that while tech provides more data that does not mean data is perfect. Franchise development professionals are measuring what he refers to as last touch.

“The real measurement is what the big challenge is and I think that franchise development people don’t understand that last touch tracking is not a true measure of your marketing initiatives,” he said. “It’s really understanding what’s driving people’s awareness and looking at multiple measurements or KPIs or statistics.”

He noted that a company’s website should not be a lead source.

“A website is a conduit that people go to to get into your system,” he said.

A franchise, Fitzgerald noted, “is not an impulse buy,” and a prospective franchisee is going to look at a brand through multiple impressions and sources and eventually when they’re ready they’ll inquire.

He sees digital as being dominant in terms of franchise development.

“Nothing shocking, but digital is still going to be king,” Fitzgerald said. “It’s how you get in front of people. It is what people use.” He added that the challenging thing is that people are just “getting bombarded with impressions all over the Internet. So standing out and being very focused is going to continue to be the challenge for franchise lead generation.”

Fitzgerald noted the growing importance of lead nurturing and content marketing.

“What brands need to focus on is their digital footprint,” he said. “I think they’re too focused on having information on their website. Having information on your website is great, but it’s only great for people who get to your website. People who go to your website know it’s promotional and so what people do when they learn about a franchise opportunity or brand for the first time, is they’re going to Google you, and they’re going to look for third-party validation.”

Ultimately, brands need to look at getting their stories in front of people, Fitzgerald said.

“Brands that are growing and doing well are focusing on getting their stories out to people and their digital footprint and not trying to figure out not just the last touch resource but what’s driving traffic and awareness to the franchise development sites and then what they’re doing to get those people to engage,” Fitzgerald said.