Franchise selling is tough to do well and succeed at especially for emerging franchisors and aspiring business owners launching brand new franchise concepts.

It is almost without fail that these nascent franchisors in their start up phase use the people they know & trust who work for them now to sell franchises or the Founder does the franchisee recruitment selling.

And that’s a long and tough road to travel since the franchisor team is so often all alone in making it work and succeed.

Many franchisors sell a couple of units to family or friends and give up on their franchising plan entirely.

I say just look at the numbers and that will tell you a lot about how tough it is. 

With 4000 franchise concepts for sale in North America the number of brands that actually do get traction enough to go beyond 5 units is very few.

34.2% (1378) of franchisors have 5 or fewer units  

51.6% (2081) of franchisors have 20 or fewer units  

66.9% (2698) of franchisors have 50 or fewer units  

76.5% (3085) of franchisors have 100 or fewer units  

Why does this happen you ask?

Two reasons –

  1. Wrong hire – the franchisor quite often picks a good person that they know, like and trust from within their organization or from nearby. 
  2. Lack of experience & skills – and the hire is wrong almost always because they do not have experience in franchising, prospecting for leads, long cycle sales processes and franchising compliance. 

But they are good people who will almost always fail at franchising since there are too many things they they must know how to do in franchising in order to get a franchise program of the ground and established.

Franchisors can avoid this franchise fail trap by getting the right mix of experienced skilled franchise sales help as soon as possible and we can tell you how to get that done and succeed in scaling your franchise brand.

Drop us line if you want to chat about your franchising and how to improve what you are doing.

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