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Market and Sell Franchises Yourself

As you are thinking about franchising your business you may be under the impression that you need to hire someone (which may include franchise brokers or a new in-house sales person) to help you market and sell your franchises. Your head is spinning as you wonder how you will find such people (which when it comes to franchise brokers is not a problem as there are more of them out there than there are trees in the Pacific Northwest), how much you will have to pay them and how to know who to trust with this crucial process. After all, the people you bring on as franchisees have the potential to make or break your entire franchise system! Luckily the myth that you need to hire someone to market and sell franchises for you is false.

Franchise Sales Companies Known as Franchise Brokers

Unfortunately there is a broad spectrum of companies who claim they will not only develop your franchise but also market and sell it for you because (you guessed it) they claim to have a network of franchise brokers. They say they will handle everything for you and suggest that you can just sit back and leave the work up to them “the experts” (read “Franchise Companies that Claim to “Do It All” Including Sales”). This may sound enticing but keep in mind that in reality it is a conflict of interest for a company to put together a franchise program and also sell franchises for you. Even if you hire a different company to sell your franchises be prepared to pay a large commission (often up to fifty percent or more of your franchise fee) for each franchise that the franchise broker sells.

Are Franchise Brokers Necessary?

The truth is the best person to market and sell franchises for you is YOU or someone who works directly under you. Who better to talk about your concept than you or someone within your business who works in your business and is really passionate about it. As long as you can talk about your business and follow the guidelines we provide during our franchise development program, there is no reason you can’t market and sell franchises on your own. Not to mention, over sixty percent of franchise litigation comes from someone (like a franchise broker) who misrepresents your concept when trying to sell it, resulting in you being sued for fraud and misrepresentation (check out “Franchise Legal Problems Due to Sales Misrepresentations”). Case in point, there was a company a couple of years ago based out of the Georgia/Florida area that positioned themselves as a franchise development company that “does it all including franchise marketing and sales” and who was found guilty of many things including illegally selling franchises, misrepresenting concepts and who were operating unethically (see our President’s Warning Message about who you talk to about how to franchise your business and other franchise companies).  This company was fined and banned from participating in any franchise-related activities; and as of the writing of this article is facing litigation from the franchise companies they represented because all their franchise agreements were ordered to be rescinded.

Not Worth the Risk

Using franchise brokers is not worth the risk. At The Franchise Maker we believe you should be self-sufficient and not reliant on anyone to market and sell your franchises. Marketing and selling franchises is not as difficult as it may seem as you aren’t really selling anything to anyone. You are awarding a franchise to the right applicant. And as far as marketing and generating franchise leads, lets face there are no secrets because you have access to the same marketing avenues as franchise brokers.  The only difference is YOU control the leads rather than a franchise broker who will recycle that lead to their benefit for another franchise concept they represent in order to make a commission (yep it happens and is very prevalent). Bottom line is you and your team can do it; you don’t need someone to do it for you.

Not only will our franchise development process provide you with the knowledge you need to understand and execute franchise sales, we also offer a comprehensive Franchise Qualification Program (learn about how we work with you in developing your franchise qualification process) that will teach you everything from how to screen and qualify applicants to executing the franchise agreement.

Now that you know you can market and sell franchises yourself, don’t let the fear of marketing and selling franchises stop you from exploring the idea of franchising your business. We work closely with you throughout our franchise development program to make sure you are well-versed when it comes to awarding franchises.  Call us directly at 1-877-615-5177 and we will be happy to answer any questions you have about franchising your business and managing your own franchise marketing and sales activities.

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