Why use a Franchise Sales Organization?

Consider the Benefits of Outsourcing.

 

While franchise sales outsourcing can save franchisors money, there are numerous

other benefits to be considered when making the decision to outsource. 

  • Reduce labor costs: Identifying, hiring, training and management

        of franchise sales staff can be very expensive. Often,

        when the inexperienced franchisor attempts to hire their

        franchise sales staff, they don’t have the requisite skills

        to properly manage these people, and for this reason,

        sales executives don’t always meet expectations.

        Outsourcing lets you focus your human resources on the

        development of your franchisees, where you need to focus

        your resources the most.

 

  • Control capital costs: Cost-cutting may not be the only

        reason to outsource, but it’s certainly a major factor. Outsourcing

        converts fixed costs into variable costs, freeing capital for investment

        elsewhere in your business.  As a by-product, franchise sales

        outsourcing can make your firm more attractive to investors,

        since the franchisor can invest more capital directly into

        revenue-producing activities.

 

  • Focus on your business:  Every franchisor has limited resources

        and every executive and manager has limited time and attention.

        Outsourcing can help you focus on activities that serve the customer,

        and it can help managers set their priorities more clearly.

 

  • Start new franchises or development initiatives quickly. A good

        outsourcing firm has the resources to start a project right away.

        Handling the same project in house might involve taking weeks or

        months to hire the right people, train them and provide the support they need.

 

  • Level the playing field: Most franchisors simply can’t afford to

        match the in-house franchise sales staff and services that larger

        companies maintain. Many of these larger firms employ franchise

        sales “superstars” who command huge salaries for their experience. 

        Outsourcing can help small firms act "big" by giving them access to the

        same caliber of sales talent, scale, efficiency and expertise that large

        franchise companies enjoy.

 

  • Reduce risk: Our service offering combines a modest monthly service

        fees and a “pay-for-performance” structure.

 

Ten Reasons Why Franchise Sales Outsourcing Works:

 

1. Minimize your initial investment in franchise sales staff, facilities and technology

2. Access to top quality representation that you cannot afford or match with internal staff

3. Improved lead generation handling and more effective sales activity

4. Daily franchise sales management tasks eliminated

5. More accurate forecasting

6. Eliminate non-buyers earlier in the process, resulting in a shorter selling cycle—more deals, faster

7. More effective selling with higher sale averages from your lead flow – stretching your marketing dollars further

8. Creates stronger franchisee base and improves company image

9. Paying for performance reduces risk

10. Better results, higher growth, at a lower cost per sale

 

Is Franchise Sales Outsourcing the Best Alternative?

 

Franchise Dynamics is not right for everyone. 

 

Since Franchise Dynamics requires certain levels of advertising expenditures of all of its clients, companies not committed to advertising will find the Franchise Dynamics solution to be inappropriate.  Likewise, for this same reason, if a company is looking to “walk before they run” and sell only a handful of franchises in the upcoming year, they will probably need to do their initial sales internally.   

Similarly, if a franchisor is looking to grow aggressively, Franchise Dynamics may not offer the most economical model of franchise development.   A more economical model will be to hire experienced franchise salespeople.  For these companies, we recommend that they use an experienced recruiter like Franchise Recruiters to bring in top talent  and grow their company internally.  

 

NOTE: Some faster growing franchisors may choose to work with Franchise Dynamics either as a “back-up” to their existing sales force or to fill-in when there is not a need for a full-time franchise salesperson.  In those instances, Franchise Dynamics will typically work on a “limited exclusive” basis – in which it is responsible only for franchise sales within a given geography.