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Working with franchise brokers and coaches

Why working with franchise brokers makes sense
I went to the  Franchise Broker’s Association Annual Convention some time ago. Afterwards, I was in the Houston United Club on a layover, and I had a call with one of my franchisor clients. He was shocked to learn that we were working with franchise brokers. “They are so expensive! Why should they get $20,000 just for a lead?”
The commissions paid to brokers “just for a lead” are surprising to many would-be or brand new franchisors. For some reason the franchise broker/zor relationship can become occasionally adversarial. I have never understood this. To franchisors; franchise brokers are out there building YOUR brand. You are NOT paying them for just a lead; you are paying them because they are your brand ambassadors.

Below is an excerpt from my book How and Why to Franchise Your Business that addresses the coach/zor relationship.

Brokers, coaches, consultants-they are known by many names. Basically, franchise brokers are responsible for generating their own leads, and they refer interested parties to franchisors.
I have heard it said that brokers just bring you leads that you would already get elsewhere. I can tell you that I have worked with franchise budgets in excess of $100K a month in lead procurement. I currently manage a budget close to $1mil/year, and in all my years of franchise development, I have only had one lead come through a broker and another franchise lead source.
If you chose to work with brokers, and I think most franchisors should, then you need to learn how. This is not a set-it-and-forget-it model, though it is often treated as such. It’s important to understand that most broker networks have several hundred franchisors in their portfolio, but most […]

Why is it beneficial to have military veteran franchisees or vet employees?

What’s the deal with hiring or recruiting vets, anyway?

As business owners or franchisors, we often here about the advantage of hiring military veterans. The first thing that often comes to mind is taking care of those who agreed to, or actually did, put themselves in harm’s way to defend our country and way of life. Surely, however, there are many other ways to support veterans than to give them a job, right? Absolutely! I myself am a support of the Wounded Warrior Project, send care packages to deployed personnel, and occasionally pick up a tab in a bar or restaurant for a service member.

So we don’t have to give returning service people a job to show our appreciation. That then begs the question, should we be focusing on recruiting candidates with military experience to join our ranks, either as employees or business owners? In short, YES!


I myself am a peacetime vet (sorry for the blurry picture, that’s all I’ve got!). That means that I served my entire military commitment (U.S. Army, 13M, STEEL RAIN) in a time that this country was not at war (my time of service ended shortly before 9/11). When it comes to readiness for a position, there is some distinction between peacetime and wartime vets. The qualities I am about to explain to you that make veterans uniquely qualified apply to both peacetime and wartime service members, but in peacetime we were practicing, while in wartime what was once practiced was being executed on.


So what qualities do military veteran franchisees or employees bring to the table that you may not find as easily in other candidates?

Personal Accountability
I went in the military a little older than most, so I graduated AIT
(Advanced Individual Training, […]

Secure passwords through a password formula

Note: This is kind of a long article. If you just want to know how to make a unique, secure password for every site you log into, jump down to The solution
Using a password formula
So you might be wondering why a franchise blog is writing about passwords. After all, almost all of our posts talk about how to franchise a business in some way. It’s simple; regardless of your line of work, cyber security is important to you. If you are a franchisor, you likely protect your franchisees bank account information, credit card information, SSN, etc. with a password. If you are a franchisee, you likely protect your franchisor’s intellectual property, as well as your employee’s personal information, with a password. We all use them, and most people’s passwords are simply not safe. Why? There are four steps to a secure password, and I am of the opinion that, for most people, following them is impossible. Chances are you already know the four steps, so feel free to skim and then jump down to the solution if you want.
Step 1: Make it unique
This one seems obvious, but many people don’t even take this simple precaution. How do I know? Because many hacks and password dumps have shown that the top five passwords in use today are “password”, “123456”, “12345678”, “1234”, and “qwerty”. Of course, clever individuals do letter/symbol or letter/number substitution, so that “password” becomes “p@55w0rd”. This was a decent solution 10 years ago, but now this is so common that many dictionary hacking programs will try p@55w0rd before they try password! Now, to go truly unique, many people are recommending password phrases. A pass phrase would typically be something that is meaningful to […]

The Franchise Sales Process

The Franchise Sales Process
I titled this article the franchise sales process, but this process is more accurately referred to as the mutual evaluation process. Semantics is the first step to a correct mindset about this process. You see, if you are trying to “sell” your franchise, you may end up with the wrong candidates in your system! As any experienced franchisor can tell you, one “wrong” franchisee can wreak havoc in an otherwise strong system. For a young franchisor, if one of your first franchisees is not a good fit, they can devastate your system and stunt your growth for years to come. So lets agree to call the franchise sales process a “mutual evaluation process”, shall we?
The first key to a successful mutual evaluation process is to have a process! While this may seem obvious, we have interacted with many young franchisors who simply answer the phone or call the leads and talk about their brand, send out a Disclosure Document when they “feel” like the time is right, and basically provide a reactive sales experience to the candidate. The problem with this is two fold.
You are the expert
You are the expert in this business. You know (or should know) what information your candidate needs to make an informed decision in a timely manner, and how they get that information. If you are simply reacting to what your candidate is asking for, you likely will have a longer mutual evaluation process, and may well lose your clients due to lack of comfort in your brand.
You need information
Your candidate is interested in the information they need, not the information you need. However, like them, you are considering entering into a long-term business […]

Why Oursource Franchise Development

Why outsource franchise development
You may be wondering “why outsource franchise development”. The fact is that, just like any other skillset, franchising takes years to perfect. Chances are if you have spent years perfecting your business model, then you haven’t spent years perfecting ours; franchise development. There are several reasons why outsourcing franchise development makes sense.
Keep your eye on the ball
When learning a new skill, other skills may suffer. When starting a new business, other businesses may suffer. Franchising is a new skill and a new business, but it doesn’t have to make your other businesses suffer. Keep your eye on operational excellence and delivering the best possible value to your franchisees. Let your outsourced franchise development team bring them in.
Save personnel costs
A good franchise sales person will likely cost you close to $100K a year or more. A franchise executive may be ½ again as much, or even double. For a fraction of this cost, you can have access to a staff of executive-level franchise personnel. With the right outsourced franchise development team, you should receive not only franchise sales support, but also ongoing operational consulting.
Economies of scale
An outsourced franchise development company likely represents multiple franchisors. As such, they most likely have preferential buying and placement arrangements with leading franchise portals, publications, and shows.
Who do you chose?
So now you know the answer to “why outsource franchise development”! Do you think outsourcing is the right choice for your company? Great! Now the question is who to outsource franchise development to? Click here to read our article Who to outsource franchise development to. Also, if you want to learn more about how to franchise a business, check out our article on that topic or reach out!

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