What Is An FSO Franchise Sales Organization?

FSO Franchise

FSO Franchise

The term FSO Franchise or FSO in general means Franchise Sales Organization.  As more and more franchises appear, the need for companies that can sell franchises successfully at a high rate are becoming increasingly in higher demand.

Here at Lead PPC, we work with about 10 FSOs by providing quality franchise leads for the FSO companies to follow up with.  And, we also provide FSO services for some of our clients, meaning that we not only generate the leads via Google Ads and Meta Ads, but we also have a sales team that will follow up with those leads and sell the franchise opportunity on behalf of our clients.


Why Do FSO Franchise Sales Organizations Exist?

As franchise fees have rapidly increased from around $30,000 to now $50,000-$60,000 there is a lot more money on the table to pay high quality franchise sales reps and organizations to help you close more deals, especially when there is usually a trailing 5-7% of gross revenue piece that exists and fast growing franchises often get acquired by private equity companies.

All of these factors are driving emerging franchisors to outsource their franchise sales to other companies in order to help them grow more quickly.


How Much Do FSO Franchise Sales Organizations Charge?

The pricing for FSOs is all over the board.  But on the low end, expect to pay $5,000 / mo. per sales rep needed, which usually equates to about $5,000 / mo. per 300 leads because a single rep can usually only follow up with about 300 leads per month for any given brand.  On the high end, some FSOs charge up to around $15,000-$20,000 / mo. minimum to work with you.

On top of that, an FSO usually charges about 40-50% of the franchise fee, which usually equates to about $25,000 per sale.  If a broker network is involved, then you might only need to pay an additional 15-30% to the FSO for processing the lead.

Many FSOs now also charge around 1-1.5% of the gross revenue for generated.  So, if you’re charging your franchisees 6% of gross, you may have to pay 1/6 of that to your FSO, depending on which FSO you work with.

Other FSOs require that you sell them 10-50% of your company in order to engage with you.  All things considered, FSOs are typically worth their weight but that weight is expensive.


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 agency that does National Franchise Sales and marketing via PPC (Google Ads + Meta Ads).  Also, here’s a list of some Franchise Sales CRM options that might help you.