Top 6 Franchise Sales Mistakes And How To Avoid Them

Top 6 Franchise Sales Mistakes

Mistake #1: No Leads For Franchise Development Reps

We get a ton of calls from franchise sales reps who were recently hired into a franchise system that they are extremely stoked about only to discover that they have no franchise leads.  My own brother recently had a similar situation where he got hired to sell cars at a brand new Ford dealership in Texas only to discover that the internet marketing guy for the dealership had no clue what he was doing and thus it was nearly impossible to sell cars unless someone randomly walked on the lot.

It doesn’t matter whether you are in the franchise sales industry or any other industry.  If there are no leads, there are no sales.  This is why PPC for franchises is so important.

Do your hard working franchise development team a favor and make sure to have ample leads for them to follow up with.  Back of the envelope, you’re going to want at least 50 leads per month per franchise sales rep.  So, if you have 2 sales people, you’re going to need about 100 leads per month.  This should cost you about 100 * $35 = $3,500 / mo. to drive the leads that they need to be successful.  Otherwise, you’re just burning money on a sales staff with nothing to do.

Mistake #2: No Item 19 For Prospective Franchisees

Every franchise system has to start somewhere.  But, if you don’t have any legally verifiable case studies for your prospective franchisees to look at, it’s going to be very hard to close a deal.  If I owned a franchise system, I would even put some of the Item 19 information on my landing pages to highlight what kinds of results franchisees are achieving.

Along with that, you’re going to want to make sure to have a few key references available in the form of your highest performing, nicest franchisees that interested prospects can call after they have made it far enough in your pipeline (maybe after meeting the founders but before they go to a discovery day).

Mistake #3: Not Enough Locations Sold

This is perhaps the hardest hurdle for brand new franchisors to overcome.  It’s a bit of a catch 22 because you can’t sell new franchisees want to see that you’ve already sold locations and yet you need them to buy so that you have location successes to show to other franchisees.  Sometimes it feels lie a never ending rat race.

One of the easiest examples to see this in is with franchise broker networks.  It used to be that you would pay what amounts to an average of about $22,000 per franchise sold to broker networks.  But, broker networks are getting savvy and passing on the difficulties of selling new franchise systems back to the franchisor in the form of higher costs for the first few deals sold.  Many broker networks are now charging around $40,000 for the first 5 franchise deals that are sold because they are just that difficult for anyone to sell, even if you’re very experienced in franchise sales.

So, what does this mean for you?  Our recommendation would be start with corporate owned locations.  Then, use those stores to create an Item 19 that highlights your successes.  The, take a few of those store and sell them to current employees, friends, or family.  Once you’re at that point, you’re in a much better position to start paying for leads and hiring others to help you sell.

Mistake #5: Slow Call Back Times For Sales Reps

Owning an advertising agency that provides PPC (Pay-Per-Click) leads for franchisors for well over a decade, there is always this finger pointing situation that occurs between marketing and sales.  Marketing blames sales for not closing deals and sales blames marketing for not providing good enough quality leads that are closable.

Over the years, one data point that we’ve found that is a great one to look at is how long it takes for your sales reps to call back leads.  Some of the best sales teams that we have seen can actually call back web form leads that are generated online within about 30-60 seconds.  Some of the worst teams that we have seen take hours, days, or weeks to call back leads.  There are all sorts of software solutions out there these days that can send SMS text messages and even call your web form leads and turn them into a phone call (such as Leverly, formerly known as Speak2Leads).

Call back time is perhaps most important when you are buying franchise portal leads (leads from sites like Franchise Gator,, BizBuySell, etc.) because those leads are often times sold 5-15 times to other franchisors and franchise brokers.  So, if you don’t call those leads almost immediately, chance are someone else already has.

You have a little bit more time to call back leads that come from your organic website, PPC, and other mediums such as that.  But, if you’re working any types of leads from franchise portals, you really have to call those leads back quickly.  Either way, there’s no excuse to not call back all lead types within 24 hours, unless they game in on a Saturday.

Mistake #6: Bad PPC Landing Pages

This one is specific to running PPC or “paid” ads on Google, Facebook, Instagram, YouTube, or LinkedIn.  Never send your expensive PPC clicks to an organic website.  Usually doing so is going to run you about $150-$1,000 per lead, which is extremely cost prohibitive.  Instead, use a tool like Unbounce to create landing pages that are specifically designed for paid traffic.  Our average Cost Per Lead (CPL) all-time across all of our clients over the past 13 years and $15M+ spent is about $32.

We don’t even charge our clients for us to make landing pages for them because it’s that vital to keep the CPL down.

Need Help?

We can only say so much in an online blog article.  If you’re interested in our franchise lead generation services, make sure to fill out the contact form so that we can schedule a call together. Or you can just call us directly.  Looking forward to speaking with you and learning more about your ppc lead generation needs!



A Few More Franchise Sales Ideas

When it comes to franchise sales, the wrong moves can easily lead to reduced profitability and growth. Whether you are a franchisor or a franchisee, understanding common mistakes in franchise sales can help you avoid them and stay successful.

One of the biggest franchise sales mistakes is failing to do sufficient research before launching your franchise. It’s essential to understand who your target market is and what their needs are so you can create an effective strategy for marketing and selling your product. Doing thorough research also helps determine which markets may be more receptive to your franchise idea, as well as which areas may require more effort when it comes to building brand awareness.

Another mistake that’s often made with franchise sales is not properly pricing the product. Not only can underpricing your franchise lead to decreased profits, but it can also make it difficult for franchisees to make a living. On the other hand, if you overprice your franchise, potential customers may be put off by the high cost and opt to go with another franchise concept instead. Ensuring that you set an appropriate price point is essential in order to maximize profitability and ensure customer satisfaction.

A third mistake that’s often made with franchise sales is failing to provide proper training materials or support systems for franchisees. Making sure franchisees are properly trained on how to use your products or services not only helps them succeed but also ensures customer satisfaction. Additionally, providing ongoing guidance and support systems such as help desks and forums can keep franchisees engaged and up to date with the latest industry trends.

Finally, one of the biggest mistakes in franchise sales is not taking advantage of digital marketing tools. As more and more customers go online for their shopping needs, it’s essential that you have an effective digital strategy in place in order to reach them. This includes using social media platforms, search engine optimization techniques, email campaigns, and other tactics to make sure your franchise is visible on the web.

By avoiding these common mistakes in franchise sales, you can ensure that your business is successful both now and into the future. Moreover, understanding these mistakes allows you to take proactive steps towards maximizing profits through proper pricing strategies and by utilizing digital marketing tools. With the right strategies in place, you can enjoy a successful business that’s both profitable and sustainable.

Ultimately, when it comes to franchise sales, understanding the common mistakes made by others is essential for success. By doing your research and taking advantage of digital marketing tools, you can ensure your franchise has the best chance of succeeding. Additionally, maintaining an appropriate pricing structure and providing proper training materials and support systems will help keep customers satisfied while increasing profitability. Through careful planning and implementation of these strategies, you can avoid costly mistakes in franchise sales and enjoy a successful business model.