How to Franchise Your Business Well

Why is it that some franchises seem to expand so quickly and others can’t seem to get off the ground?  In the franchise development world, you have the opportunity to see some “out of this world” ideas and business concepts.  The really exciting part of working in franchising is that we are able to work closely with entrepreneurs who have more vision, insight and ability to innovate than anyone on the planet.  We are confident that what drives the global economy is the small business owner, entrepreneur who is looking for ways to create, constantly looking for ways to build and always taking a positive spin on how to approach opportunities.  Franchising is a nice way to keep your finger on the pulse of the global small business economy and to see what, who and how people are doing business.  In most cases, what happens in the small business and franchise markets is what is coming to the broader market.  On one hand, the franchise market has produced a multitude of amazing success stories, but why do some not scale as efficiently and achieve duplication of their brand through franchising?


When you franchise a business, you enter a new world of business, some business leaders just aren’t great at being a coach. 

Just because an entrepreneur makes a fantastic product and excellent pizza, doesn’t necessarily mean they have the business skill set needed to teach, coach or mentor others.  Franchising is a business where the franchisee invests in the business because they need the advice, guidance and counseling from the franchisor.  A Franchisor needs to be able to share and teach intellectual property to new franchisees and sometimes the entrepreneur can hold back the growth of the company if they are unable to communicate effectively to teach, train and sell the vision of the franchise model.  Our direction to a business that is just starting to Franchise the Business model, do a hard self-evaluation, if you don’t have the skill set to do this, there are lots of professionals out there you can bring into your system to support your growth and be a leader within your franchise business. 


Franchise Development is a Serious marketing and sales business.

There are cases in franchise development where “Build it and they will come” holds true, but the majority of the time, it takes a concentrated effort to market, promote and sell the franchise.  When you franchise your business, you now are tasked with the responsibility of sharing your vision and convincing other people that what you have to offer is worth the investment and offers value to them over doing it on their own.  Franchise development is unique in that you are effectively selling “air” when you promote your franchise brand.  This transition from selling a physical good, product or item to now selling an idea requires a good marketing plan, franchise sales process and resources to support these marketing efforts.  Typically, this requires the involvement of franchise brokers, or professional franchise sales people who can assist the new franchise in going to market.  The franchise systems that have success in franchising invest the time, money and effort into franchise collateral materials, promotional tools and overall branding.  The great franchise systems certainly have a look, feel and presentation that resonates with a potential investor and looks bigger than a “mom and pop”. 


You Should have a Great Concept when you Franchise your Business.

Good ideas are never easy to come by, when you do find one, the process of franchising allows a business owner to leverage that idea and monetize the concept through growth and duplication into new markets.  Some markets are just tough to franchise when it comes down to it.  If you have a QSR food service model and are considering franchise expansion, you better have a strong differentiator to be able to attract attention and draw interest from other food service franchise brands.  In some cases, established and mature markets can be franchised with a good concept and a unique approach to the model.  OrangeTheory is a great example of this idea, it started with a new approach to fitness and health services using the group fitness model and what started out as the “Ellen Latham” fitness program used an innovative technology and system to help clients measure their heart rate as they went through the fitness program.  With partners, the business rebranded to OrangeTheory and in only 6 years was able to expand to over 1,000 locations worldwide.  Fitness is a crowded and competitive market which makes this growth even more incredible, but what has helped drive the expansion is a great concept, something innovative and different from what had been done in the past.  The branding and overall look, feel and presentation are what has helped carry the model forward and in an essence has been the vehicle to support new franchisees willingness to invest in the model.  Ultimately, if you are going to franchise your business, you should have something innovative and something that will create interest and ultimately spark the investment in your brand and franchise model.


Good Numbers are the Heart of a Good Franchise.

It only makes sense that when you franchise your business, you are ultimately selling an investment opportunity.  If the numbers and return on investment exceed expectations for franchise investors, odds are that the model will continue to sell and grow.  The Creamistry Franchise model is a good example of this which is a new brand in the ice cream and frozen desert market segment who has in a way redefined the market niche.  The model incorporates liquid nitrogen to freeze the ice cream product and at the unit level has produced significant revenues and profitability for early adopter franchisees.  Impressive financials have been part of the presentation for Creamistry and the response has been nothing short of miraculous with over 200 units sold in the first three years of franchise development.  Fortunately, franchisees have been able to generate similar numbers in their units and continue to validate the brand and financials which in turn only drives more unit growth.  What Creamistry has realized, much like other brands is that when the model works and financials exceed the norm for an industry, multi-unit and master franchise growth becomes a reality.  Multi-unit franchisees are capable investors who have the capital to invest in 2 or more locations at one time.  In some cases, they will invest in large numbers of units at one time exceeding 50 units over a defined time period. 


For more information on how to decide whether to franchise your business and when is the right time to franchise, contact us for a no obligation consultation to review the model:



How to Franchise Your Business – Working with Franchise Brokers

The franchise development process can be an exciting time for franchisors who are rapidly expanding their brands into new markets.  The amazing growth that some franchises are able to accomplish doesn’t come by accident though.  Good franchise systems have excellent franchise development models in place to recruit franchisees.  A franchise marketing system includes not only lead generation and advertising, but also a sales process, franchise sales people and a franchise sales system that allows for a solid ROI on marketing dollars and ultimately more sales for the franchisor. 


When discussing how to franchise a business effectively, one channel that always comes up as a question mark, particular for new franchisors, is how or why they would consider working with franchise brokers.  A Franchise Broker is a third party referral source who supports franchise development efforts by way of introducing qualified franchise leads.  Franchise brokers will be paid anywhere from $15,000 up to $30,000 for a sale in commission when the franchise lead is placed in a system.  As one might imagine, particularly for a new franchisor, this is a difficult pill to swallow and seems egregious when considering that franchise fees may only be $25,000 to $50,000.  Keeping in mind that the value of the royalties and recruiting a new franchisee well outweigh a single commission payment, it still is a very good deal for the Franchisor.   


As an outsourced Franchise sales organization, Franchise Marketing Systems generally recommends working with brokers and certainly for a new franchise system who needs every bit of exposure they can get while entering the franchise marketplace.  A Franchise broker will operate much like a real estate agent will, in that they represent a large group of franchise brands and when they develop a relationship with a buyer, they will help the buyer find the best fit for them out of the franchise options they work with. 


The Franchise Broker spends their own money on advertising and presents themselves as a third party, not connected to any one franchisor in order to help the franchisee from as unbiased of a position as possible.  Because franchise brokers are only paid on success fees, as a franchisor, you need to almost work with brokers like a second customer in order to show them you care about their success and are willing to invest in their clients also.  Franchisors who do a great job with this process are doing things such as buying plane tickets for broker’s clients who get to the discovery day process, being extremely reactive to broker’s needs and requests, being available for calls and focused on follow up with broker’s leads after introduction and flying brokers out to the corporate headquarters for meet and greets. 


Several franchise brands have mastered working with Franchise Brokers and managed this process very well.  Menchie’s offers a $30,000 commission, Schooley-Mitchell presents a $27,000 commission along with other franchisors who have had great results working with Franchise Brokers.  The benefit to it all is that with a great franchise broker campaign, some Franchisors are able to manage a large part or virtually all of their franchise development campaigns.  Many franchisors have driven fantastic results by leveraging franchise broker relationships. 


An easy way to start working with franchise brokers and introduce your franchise brand is to join franchise broker networks.  Some of these that we recommend include:

IFPG – – reasonable fees and solid results.

Franserve – – great network for startup franchisors.

Frannet – – established and productive network.

Franchoice – – proven and professional franchise broker network.


These networks charge varying fees to enter the system, but will allow a new franchise brand to have access to hundreds of brokers and immediate access to great franchise relationships.  When you franchise your business, it is critical to get the help, assistance and additional exposure from third party franchise brokers. 


For more information on how to work with Franchise Brokers, Contact Us: