Franchise Sales Management and How It Can Help You Grow Fast

Every franchisor dreams of becoming the next McDonald's or KFC. And you can be. But how would you feel if your franchise has all the potential but instead fails because you didn't properly plan and manage your sales strategies?



Franchise sales management refers to organizing the franchise sales process to maximize success. Most of the time, this includes having detailed plans of expenses, evaluating desired outcomes, and ensuring constant support for franchisees after a sale.

While franchising can be easy, it carries a lot of risks if you don't commit to the sales process and ensure that every step is properly strategized. Franchise sales management often becomes the defining factor between succeeding and failing as a growing franchisor. 

You've gone all this way - surely you want to succeed. So how do you manage your franchise sales in a way that will guarantee this?

1. Plan Your Sales Strategies and Understand That They Will Cost You

Franchise establishments account for $787.5 billion in the United States in 2019. This shows that franchises are a common thing in the country, and a potential franchisee will have numerous choices. This means competition will be tough.

There's no sugarcoating it. Selling a franchise to the right people will drain your pockets. Planning this out is important because it gives you an accurate expectation of just how much you will have to spend, and how worth it the process will be.

Before you begin, set out detailed plans for your sales strategies and research the best ways to reach your targeted crowd. Will you promote mainly on the Internet? Will you hire a sales advertiser specifically for franchise sales?

Proper sales management is crucial in ensuring you don't spend more than you have to in this step. It also makes sure you are attracting the right audience to grow your franchise.

2. Do Your Research on Potential Franchisees

Selling a franchise is very different from selling a product. When you sell a box of chocolates, it does not have the potential of risking your entire brand, opening up management conflicts, and subjecting your company to litigation.

This is why handling franchise sales will differ from handling normal sales. As part of a franchise, whatever a franchisee does with your business will always be linked back to you, so make sure you like what you see in these early stages.

Before ever negotiating a deal, get to know your potential franchisee. Discover the values and strategies of potential franchisees. This is a foolproof way of understanding how they will run a business. Try to gauge how they will manage your franchise and whether this will match with the ideas you have in mind.

3. Make Sure Your Documents are Accurate

As one of many other franchisors looking to sell and grow, you need to make your franchise business appear as desirable as possible. The way you do this is by ensuring your documents correctly reflect the value of your business. A franchise disclosure document provides your franchisees with all the information they need to make their decision, including details of ongoing fees, franchise agreements, and obligations. 

This is an essential step in franchise sales. Your FDD will clearly outline the value of your brand and also the terms of agreement. If you don't look this over closely, the potential for errors will increase the risk for your business.

Since it is also a legal document that needs to be registered with the Federal Trade Commission, make sure they are compiled by someone who is experienced with complying with regulations and making contracts. Otherwise, it's always recommended to outsource professionals who can help evaluate these documents.

4. Provide Support for Franchisees After the Sale

Selling a franchise is not the end of the process. You will also have to provide initial support for the franchisee. This is important to make sure your franchisee's future business strategies will match yours. 

The level of support will depend on you and your franchisee, but it's important that you take note of this step when managing your sales plans. Running a franchise is an ongoing commitment, and to make your business succeed, you will need to pay close attention to how the individual offshoots are being run. 

Often times, you will assist in site selecting and developing. Since you know your brand in more depth, you will have more knowledge about where your franchise is likely to succeed. You can also provide training that is relevant for running a business, such as human resource management and employee training.

5. Consider Outsourcing for Effective Franchise Sales Management

At the end of the day, expertise in franchise sales processes is key in ensuring your transaction succeeds. The best way to make this happen is to consider outsourcing. Companies with years of experience handling other franchise sales processes will know the best way to strategize and reduce your risk.

Franchise Sales Management is the Key to Successful Sales 

The best franchises have planned out their process to the minute details, even before they ever sell anything. Franchise sales management is therefore important in having a profitable sales plan, maintaining a good relationship with your franchisee, and ensuring future operations will not be negatively affected by the franchise sale. 

How We Can Help

As a company with extensive experience and industry knowledge, we are here to help you plan out your franchise sales strategies to maximize the possibilities of success. 

To know more about how we can help your franchise experience exponential growth, contact us.