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Are you considering franchise development? The decision between outsourcing to an external firm or hiring an in-house developer is pivotal. While both routes offer advantages, opting for an external team, like Pinnacle Franchise Development, often presents a cost-effective solution and access to seasoned expertise.
Generating leads is the lifeblood of any franchise endeavor. Much like advertising for a restaurant, a robust lead generation strategy is essential. Whether it’s leveraging organic methods like blog posts and social media, or harnessing broker networks, a well-balanced approach can yield a pool of qualified franchisee candidates. The path to successful franchise growth begins with these strategic choices.
However, before you hire a franchise developer, there are 6 questions you need to have answers to. Let’s talk about them.
One of the first questions to consider before hiring franchise developers is whether you should outsource the necessary work to an external franchise development firm or whether you should hire an in-house franchise developer.
Both options have their merits, but hiring internally often requires more of an investment than relying on an experienced franchise development team at an external firm. You’ll have HR costs to consider, and if you only need franchise development services on a finite basis, you may have a hard time finding quality candidates.
If you open a restaurant, you can’t simply hang a sign on the door and expect your business to be flooded with customers. Advertising is essential (and having a quality product, of course).
The same is true of attracting franchisee candidates to a franchise opportunity. You’ll need a solid lead generation strategy to produce a pool of franchisee candidates, which may include:
One of the questions a franchise developer will ask you is where you’re investing to generate leads. If you haven’t yet taken this step, don’t worry. Our team at Pinnacle will walk you through it. It’s often advisable to embrace a hybrid lead generation strategy that uses both brokers and organic methods.
Once you’ve decided that you’ll definitely need a franchise developer, it’s recommended that you join broker groups. In fact, you should have a budget both for broker groups and for organic lead generation via digital marketing.
A broker group or broker network is a way for franchisors to connect with qualified brokers and potential franchisees. Essentially, it’s a networking opportunity that helps franchisors find franchisees who will represent their brand well and help grow the business. Once you decide to invest in broker group memberships, the next step is to choose which groups are a fit for your brand. Pinnacle Franchise Development will also assist with this strategy to ensure that your budget is being best utilized.
Another issue to consider before hiring a franchise development company is your franchise fee. Your franchisees will pay you the set franchise fee upon entering into the franchise agreement.
You will need to hammer out the details of your franchise fee to suit your strategy for growth. For example, you’ll need to consider whether the franchise fee will cover commissions.
Generally, in addition to the initial upfront payment, franchisees are also required to pay monthly royalties to the franchisor, along with other fees like material sourcing costs.
As previously noted regarding lead generation, you’ll need to market your franchise. One of the questions a franchise development company will ask is whether you already have marketing collateral.
There’s no need to already develop it prior to hiring a team, of course. At Pinnacle, our comprehensive 90-day onboarding process includes 30 days of developing your marketing collateral and sales processes.
Although you don’t need to have an established sales process prior to hiring a franchise developer (at Pinnacle, we’ll walk you through it), you may want to start thinking about it.
The franchise sales process is essentially a pipeline that walks a franchisee candidate from initial contact through candidate assessments to Discovery Day and beyond. It’s a Point A to Point Z roadmap that details the candidate’s journey toward becoming an official franchisee.
When you’re ready to expand your business into a franchise, contact the team at Pinnacle Franchise Development. Our team brings more than 40 years of combined experience building brands and facilitating franchise success.
Contact us today to request a consultation.