The Benefits of Franchise Sales Outsourcing, Explained

Are you considering franchising your business? Or you're already a franchisor but aren't satisfied with your growth?



Franchising presents the opportunity for growth even during challenging economic times. Analysts expect the franchising segment of the economy to grow by 7% in 2021.

You don't have to settle for mediocre results. If you're not meeting your growth targets yet, franchise sales outsourcing can help.

Find out more about franchise sales outsourcing. When you see the benefits it can bring you and your business, you'll be ready to take the next step.

What Is Franchise Sales Outsourcing?

A franchise sales outsourcing (FSO) company takes on your franchise sales from beginning to end. The firm will handle leads as they inquire about your franchise opportunity. Your sales professional will qualify the leads and work them through a strategic sales cycle.

The FSO company will prepare and manage your documents. They take care of materials distribution and disclosure. They will also handle Discovery Day, which is your face-to-face meeting with the most promising prospective franchisees.

Finally, the FSO firm will provide sales closing support. The franchisor makes the final decision on accepting franchisee candidates.

Franchise Sales Outsourcing vs Franchise Brokers

People sometimes use the terms franchise broker and franchise sales outsourcing interchangeably. In fact, these two types of sales outsourcing are very different.

A franchise broker gives you prequalified leads. The broker represents many franchisors and matches prospective franchisees with the franchise that's the best fit. Once the sale starts, the broker's role is done.

An FSO firm handles the whole sales process. It's a more complete sales solution that gives you many benefits as a franchisor.

Franchise sales outsourcing can save you money and drive more sales. It lets you focus on developing your business. Small and mid-sized franchises can get the quality sales functions of a large franchise.

You'll see benefits immediately and over time.

Save Money

Franchise sales outsourcing can reduce your costs.

Hiring the best salespeople can be cost-prohibitive. In addition to their salary, you have benefits, bonuses, and support staff costs. You also need to pay for recruiting.

An FSO company can be more cost-effective than trying to hire and manage an in-house team. You typically pay a royalty fee plus a commission for each franchise sold.

At aggressive sales levels, outsourcing can be expensive. It will usually save you money for a more moderate growth rate, however.

Save Time

You save time when you outsource your franchise sales. The franchise sales process is very time-consuming. From developing leads to making the sale, the sales cycle is quite long.

A dedicated FSO firm will handle the sales process so you don't have to. Their expert professionals know how to move the process along as efficiently as possible.

Franchise sales outsourcing also saves you hiring and training time. Selling franchises is a specific type of sales. Even someone a successful salesperson will need training on how to sell franchises.

You don't need to hire and train a separate sales team when you outsource your franchise sales.

Increase Franchise Sales

To get the best sales performance, you need the best salespeople. New franchisors often have trouble recruiting top franchise sales professionals.

Established salespeople may not want to work with an emerging franchise. New franchises involve greater risk and may be harder to sell.

Franchisors who want to sell less than 25 franchises a year can also struggle to recruit the best salespeople. Top salespeople don't want to limit their earning potential.

Franchise sales outsourcing is a solution to this problem. You can work with top sales professionals and see increased franchise sales.

Be More Competitive

The franchising marketplace is very competitive. No matter what your product or service, you're competing against other established franchise brands.

A top franchise sales outsourcing firm will work with you to develop a solid sales presentation. The firm's expertise and in-depth knowledge of the franchise marketplace in your industry give you a competitive advantage.

Get Results Sooner

Franchise sales outsourcing gives you faster deployment. Instead of waiting to hire and train your own staff, you have a team of experienced professionals. They're ready to work from the first day.

A quality FSO company will work with you to develop the right franchise strategy for your business. You won't waste time on ineffective techniques and plans. Implementing a comprehensive plan with an FSO firm will give you results sooner.

Focus on Your Core Business

One of the other benefits of franchise sales outsourcing is that it lets you focus on your core business. One challenge for franchisors is continuing to develop their business while also growing through franchising. Both goals are important, and they both take a dedicated commitment.

A quality business attracts potential franchisees. A growing franchise confirms that franchisees made the right choice. It promotes further growth.

Outsourcing your franchise sales to a trusted firm lets you concentrate on improving your product, service, or business model. You get the best from both sides of the equation.

Ensure Legal Compliance

The regulations surrounding franchise sales are complex. You have many steps to follow related to your franchise disclosure document and franchise agreement. In addition to federal laws, state laws can vary.

Even a small error can put you at risk for regulatory complaints or lawsuits.

A reputable franchise sales outsourcing company has the knowledge and experience to keep you in compliance. You can be more confident that you and your business are protected.

Finding the Right Franchise Sales Outsourcing Partner

To fully take advantage of the benefits of franchise sales outsourcing, you need the right partner. You want a trusted, reliable firm with experience and a proven track record.

Strategic Franchise Development has been helping emerging brands and mid-sized franchisors unleash their potential since 2012. Our innovative approach gives you proven results.

We'll work with you to create and implement a strategic plan. You'll be able to achieve and sustain rapid but responsible franchise development growth.

Contact us today to schedule a consultation. Let's start the process to take your business to the next level.