Franchise Sales Process – FSO Secrets

Franchise Sales Process - FSO Secrets

Franchise Sales Process – FSO Secrets

Your franchise sales process is absolutely crucial.  The easiest way to figure it out is by working a top FSO (Franchise Sales Organization) like Franchise Evolution Partners, Franchise Fast Lane, or Rain Tree.  But, FSOs are picky about what brands they work with and cost anywhere between $5,000-$20,000 / mo. for a management fee plus 40-50% of the franchise fee and sometimes even a 1% gross revenue royalty.

But, behind the scenes what are are the actual things that FSOs have you do to grow so rapidly.  Remember, some brands are able to grow from a handful of locations up to hundreds of locations within just a couple of years, a feat that can take years and years (if achieved at all) for many brands.

The first thing that an FSO is going to have you do is get the following setup:

  • Marketing
    • 2 Minute Drill (One Sheeter)
    • Franchising Deck (Presentation)
    • Google Ads
      • Industry Terms
      • Competitor Terms
    • Meta Ads
    • 2-4+ Franchise Broker Networks
    • 1-2 Franchise Portals
    • Franchise Landing Page
  • Sales
    • CRM Selection
    • CRM Sales Pipeline Creation
    • Calendar Scheduling (Calendly)
    • SMS Follow-Up

You’ll probably need an advertising budget of $5,000-$10,000 / mo. for Google and Meta.  And, some franchise broker networks require some monthly fees of $1,500+ / mo.

These are kind of the basics.  From there, you need at least 1 really good veteran sales rep that has 10+ years of experience actually selling franchises.  That sales rep is going to need 200-300+ leads per month to work off of.  The best leads will come from your organic website, franchise broker networks, Google Ads, Meta Ads, and maybe 1-2 franchise portals (specifically Franchise Direct and/or Biz Buy Sell).

For your CRM, it’s kind of up to you.  We see a lot of Hubspot, Salesforce, Zoho, FranConnect, Keap, and Client Tether.  Our preference is probably Salesforce or Zoho, but any of these CRMs will work.

You’re going to end up paying about 50% of your franchise fee to an FSO plus about $5,000-$10,000 per deal for leads that came through Google Ads.  So, on a $50,000 franchise fee, expect to spend about $25,000-$35,000 per deal.  For deals that come through franchise broker networks, you’re looking more at paying around 50% of the franchise fee to the franchise broker network plus another 30% to the FSO.  So, on a $50,000 franchise fee, expect to spend about $25,000 (broker network) + $15,000 (FSO) = $40,000 per deal.

Do this setup right though, and you should seek to close anywhere between 10-50+ deals per year.  And, when that 5-7% royalty starts stacking up, it can be worth it to pay to get those deals done so that you grow.  Plus, if you’re looking for an exit at some point, that rapid growth will make you much more valuable.  You can also parlay high growth from a single brand into launching multiple brands and multiplying those sales even more.


More Franchise Sales Process Secrets

Succeeding in the competitive world of franchise sales demands strategic acumen and an in-depth understanding of what makes a franchise appealing. Seasoned franchisors know that the secret to prolific sales lies not just in having a compelling business model but in the nuanced approach to marketing it to potential franchisees. A blend of keen market insights, effective communication of the value proposition, and a robust support system can set the stage for a thriving franchise network. This article aims to delve deeply into the underpinnings of franchise sales success, uncovering the tried-and-true techniques and emerging trends that are shaping the future of franchising. From the art of crafting an irresistible franchisor message to leveraging the latest digital marketing strategies, we will explore the multifaceted world of franchise sales secrets that, when employed skillfully, can exponentially increase the chances of expansion and prosperity.

Franchise sales can be a daunting task, but with the right tools and knowledge you can secure long-term success. The first step in any successful franchise sales strategy is understanding your target audience. Identifying potential franchisees requires careful market analysis and segmentation to determine what demographic or geographical factors may influence their decision-making process. Once these insights have been gathered, it’s time to craft a message that resonates with their unique needs and desires. This could include highlighting the potential for financial success, ownership opportunities, or showcasing the brand’s values and mission. Whatever the approach may be, it must be tailored to each specific segment to create a strong emotional connection and increase the likelihood of conversion.

As technology continues to advance and consumer behavior evolves, so too do the methods of franchise sales. In today’s digital age, having a strong online presence is crucial for reaching potential franchisees. This includes utilizing social media platforms, search engine optimization, and paid advertising to increase brand visibility and attract qualified leads. Additionally, engaging with prospects through webinars, virtual tours, and online events can provide a more personal touch in the absence of face-to-face interactions.

Apart from the initial marketing efforts, a robust and supportive franchise system is essential for sustained sales success. Potential franchisees want to feel confident that they will have ongoing support and resources to help them succeed in their business ventures. This can include comprehensive training programs, operational guidance, and regular communication with the franchisor team. A strong support system not only helps attract new franchisees but also retains existing ones, leading to long-term growth and stability.


Need Help?

If you would like to speak with us about potentially having us help drive quality franchise leads and even franchise sales for your franchise please fill out our Contact Us form.

We are a boutique franchise marketing agency via PPC (Google Ads + Meta Ads).