Franchise Dynamics FAQs

Which aspects of the franchise sales process are handled by Franchise Dynamics?

Franchise Dynamics handles everything – franchise marketing input, lead processing, materials distribution, pre-qualification, ongoing follow-up, Discovery Day, closing meetings, and ongoing reporting on progress. 

How does Franchise Dynamics make its money?

Franchise Dynamics takes a monthly service fee to offset the costs of handling leads and a commission for each franchise that is sold.

How are the monthly service fees determined?

Monthly service fees are based on the anticipated lead flow.  For most franchisors, these fees will range between $4,000 and $7,000 per month.

What is a typical commission?

Commissions will vary based on a variety of factors, including the franchisor’s commitment to marketing, the amount of the franchise fee, and the availability of financing.  Typical commissions will range between $13,000 and $25,000.

Does Franchise Dynamics take any other fees?

No.  Unlike other FSOs, Franchise Dynamics does not take a percentage of a franchisor’s royalty stream. 

Is there a required marketing commitment for franchisors?

Yes.  Franchisors are required to commit to certain levels of monthly franchise marketing expenditures in order to be accepted in the Franchise Dynamics program.  Typical required expenditures start at a minimum of $5,000 per month.

Can we work with Franchise Dynamics on a non-exclusive basis?

No.  Franchise Dynamics generally takes over all franchise sales activities on behalf of its clients.  In these instances, it works with clients on an exclusive basis to avoid any sales channel conflicts. 

We generate a lot of leads through brokers – how does that work into the Franchise Dynamics program?

Generally, our clients are able to minimize or eliminate franchise brokers; however, for those who choose to do so, brokers can be treated as another form of lead generation.  Given that broker leads are typically pre-qualified, Franchise Dynamics may choose to reduce its commissions on these leads.

Does Franchise Dynamics provide any reporting to Management?

Yes.  Management will receive periodic reports on key franchise sales variables.

Who owns the leads?

The franchisor owns all the leads generated based on their advertising.  Upon termination, we will provide you with all of your leads in an electronic format used by most contact management software.

Does Franchise Dynamics do any independent lead generation?

Yes.  Franchise Dynamics has a number of lead generation programs for its franchisor clients.  These leads are provided at no additional cost.

What guarantees are there?

There are no guarantees, but we do not take on clients unless we believe we can sell their franchises.  With that in mind, we contractually commit to certain levels of franchise sales performance each year.

How do I know if my franchise organization will qualify?

Franchise Dynamics has developed a set of criterion to determine if a franchisor qualifies for the Franchise Dynamics program.  If you meet the preliminary qualifications, we typically will conduct an onsite interview as a final step in determining if the relationship will be mutually beneficial.

How do I find out more?

Send an email to info@franchisedynamics.net or call us at (708) 798-1800.