Franchising, across all segments of its industry, continues to enjoy significant growth. But in recent years, many franchise companies have struggled with the franchise sales function.

From the franchisor’s perspective, the last five years have seen the convergence of two significant trends:

• The rapid growth in the total number of franchise companies has created an increased demand for quality franchise salespeople.  According to FranData, nearly 500 new franchisors entered the market in 2005 alone.  With a total market of only 2,600 active franchisors, this represents an increase of nearly 25%.
• Over the last five years, franchise brokerage firms have grown explosively – and by some industry estimates have been responsible for the loss of at least 500 of the industry’s top salespeople. 

So while the demand for experienced franchise salespeople is skyrocketing, the supply of these individuals has declined dramatically – causing the salaries for those few franchise salespeople remaining to skyrocket.  A franchise salesperson with only modest experience can easily command a six-figure package.

A premium on experience

At the same time, franchisors who desire fast growth know that the job of franchise sales is a unique skill which can be daunting even to some experienced salespeople.  The franchise salesperson does not just make a sale.  They are asking prospective franchisees to quit their jobs, give up the perceived security of a paycheck, and invest heavily of their net worth and themselves to pursue a dream.  And this sale takes place in an environment that is increasingly competitive.  Add to this the fact that the franchise sale takes place in a highly-regulated sales process where a poor salesperson can create potential liability for the franchisor, and even good salespeople can fail.

The Choices

Until now, the franchisor has basically faced three choices (LINK):

1. Pay top dollar to recruit a franchise sales pro.
2. Hire a good salesperson without franchise experience and hope for the best.
3. Use existing staff to sell franchises internally.

But now there is a better way - Franchise Sales Outsourcing.

We are NOT a broker!

Franchise Dynamics is not a franchise broker.  Franchise brokers essentially are in the business of generating leads for franchisors.  Franchise Dynamics, by contrast, takes those leads from initial inquiry through close.  Learn more about our services, click here.