Franchise Sales Meaning – What Is Franchise Sales?

Franchise sales is a pivotal element in the world of business expansion, where a successful brand licenses its business model and intellectual property to an entrepreneur or investor—a franchisee—who then opens and operates a new branch, store, or location under the brand’s name. This method enables companies to grow rapidly without the substantial capital expenditure typically associated with opening new locations. Success in franchise sales demands a comprehensive understanding of the brand, a strategic marketing plan, thorough legal compliance, and the ability to forge strong relationships with potential franchisees. By ensuring these elements are in place, businesses can not only extend their market reach but also strengthen their brand presence on a local, national, or even global scale. In this article, we will delve into the world of franchise sales and discuss key considerations for businesses looking to expand their reach through franchising.

From fast food giants like McDonald’s to apparel brands like H&M, franchise sales have become a popular growth strategy among successful companies across various industries. The rise in franchise sales can be attributed to its numerous benefits, such as minimal risk and investment, faster expansion, and a more extensive market reach. By partnering with franchisees who have a vested interest in the business’s success, companies can also ensure consistent quality control and customer satisfaction across all locations. Additionally, franchise sales provide an opportunity for entrepreneurs to become business owners without having to start from scratch, making it an attractive option for individuals looking for proven models and support from established brands.

However, despite its advantages, franchise sales also come with certain challenges that businesses must be aware of before embarking on this growth strategy. These include the need for clear communication and alignment between the franchisor and franchisee, potential legal issues if not properly documented or followed, and maintaining brand consistency across all locations. Additionally, businesses must carefully consider the cost and fees associated with franchising, such as initial franchise fees, ongoing royalties, and advertising fees.

Best Franchise Sales Organizations (FSOs)

There are really 3 primary companies worth partnering with when it comes to getting help with franchise sales.  Each of them has their pros and cons.  We’ll walk you through our opinion of each.  For simplicity sake, we’ll organize them by which company gets the most deals per year and where those deals come from:

#1 – United Franchise Group (~700 Estimated Deals / yr)

We don’t know their exact deal production, but in talking with past employees and others in the marketplace, it sounds like they do about 700 deals per year.  Most of their deals seem to be sourced online through PPC.  They have around 28 sales reps nationwide that each do about 2 deals per month.  These 28 sales reps are spread out throughout the United States, and once the leads are initially vetted, these reps try to meet locally with those prospective franchisees and sell them on the various franchise opportunities.  It’s a pretty slick setup.  It’s our understanding that UFG tries to take an equity position in their brands of between 40-60% ownership of the company.  They can demand it because of their track record and overall sales volume.  Not every brand succeeds, so we’ve talked with some brands that get frustrated by giving them such a large stake in their company only to have to buy it back from UFG.  But, still UFG is one of the oldest and most successful franchise sales groups out there, which is why they can demand their price point.

#2 – Franchise Fast Lane (~600 Estimated Deals / yr)

Franchise Fast Lane is the legit contender for the #1 spot.  And within the next year or two, they will likely pass UFG on overall franchise sales production if they haven’t already.  I would imagine that margins would be lower for Fast Lane since the majority of their deals come from franchise broker networks.  And, those broker networks want to make about 50% of the franchise fee themselves.  So, that probably leaves around 20-30% of the franchise fee that Fast Lane is able to get from each deal.  If you’re the client, this means you’ll be giving up around 70-80% of the franchise fee to brokers and fast lane.  Fast Lane is the best when it comes to franchise broker relationship management.  We haven’t heard great things about their Carpool product, which is basically something like $5,000 / mo. for general sales consulting and a call once a week.  But, they sling a lot of deals for home service brands and a few other industries.  And, after acquiring and merging with Rain Tree, they’ve gotten a little better at online sales.  Fast Lane seems to charge somewhere around $5,000 – $10,000 / mo. plus 20-30% of the franchise fee plus .5 – 2% royalties for about 10 years.  If you’ve got the right kind of brand and you can work with them on their full service package, it’s not a bad situation.

#3 – Lead PPC / Lead FSO (~250 Deals / yr)

This one is us.  If I had to guess, we do about 250 deals per year and rising pretty rapidly.  We were traditionally a Franchise Lead Generation Agency, which we’ve been doing for about 15 years.  In 2024, we launched our FSO services.  And in 2025, we launched our Flight Club and Lead Re-Working services.  We’re getting better and better.  And, we currently do up to around 70 Discovery Days per month.  We have the most reasonable pricing at about $5,000 / mo. (plus ad spend of $10,000 / mo. minimum) plus 50% of the franchise fee.  We don’t do much with broker networks, so no extra fees there.  And, we don’t currently charge any % royalty or % ownership of your company.  Who knows… that could change with time once we pass 500 deals / yr but for the time being, we keep things pretty simple.

In conclusion, franchise sales offer a unique opportunity for businesses to expand their reach and grow rapidly through a partnership with franchisees. However, it is crucial for companies to thoroughly understand the complexities of this growth strategy and take necessary precautions to ensure its success.

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We are a boutique franchise marketing agency via PPC (Google Ads + Meta Ads) that also provides franchise sales services..