24 May 2022

    The expensive acquisition of franchisees

    Did you know that in North America, 8 out of 10 franchisors have less than 100 franchises and more than 35% of them have less than 20? One of the reasons for this startling statistic is the inability to recruit and select franchisee candidates who are ready to join the brand and change their lives.

    Honestly, it’s not easy to recruit franchisees: “Many called, few chosen,” as the saying goes. However, let’s face it, the majority of franchisors are not doing a good job of recruiting and selecting the right candidates.

    First factor: Investment in recruitment assets

    • Your first asset: The website is dedicated to potential franchisees. According to Franchise Performance Group statistics, a prospect will spend between 30 and 60 minutes looking for information about a franchise before committing to filling out a contact form. The primary source of this information is YOUR website for potential franchisees. It’s 2022, after all. Prospects appreciate quality content, which tells them a lot about the quality of your franchise.
    • Your second asset: Your social media platforms. Without a consistent presence and content, you won’t be able to attract prospects to your franchise. How much effort should you put in? The real answer: more than you think. You have to look at social media as an incentive to attract prospects to your news business. Social media doesn’t sell a franchise, it introduces it.
    • Your third asset: Your public relations. That’s right! Public relations still works! Getting people to talk about your business gives you credibility. Your public relations doesn’t have to be focused on your franchise offering; it could better promote your franchise partners.
    • Your fourth asset: Your franchisees and their points of sale. Don’t be afraid to ask your franchisees for help in generating leads. Let your customers know that franchises are available; they often generate great prospects.
    • Your fifth asset: Specialized directories and franchise trade shows. Without being miraculous, directories rank well on social media, which helps you position yourself on the Internet. Franchise trade shows, on the other hand, position you with the community of people who are looking to operate a franchise. However, results are random and do not reach all franchises.
    • Your sixth asset: You, as the company’s CEO. You must be the biggest promoter of your brand. Make sure you are in every forum possible and share news regarding your franchise. You are the most credible person to convince someone to join your brand.

    But that’s not all! You also have to invest in advertising. Don’t assume that people know you and your business opportunity. Let’s face it: recruiting is an investment in the future of your network. To generate leads for your sales funnel, it’s not uncommon to have to invest over $3,000 to 5000$ per month in advertising. But you have to know what to do and how to do it to make it profitable!

    Second factor: Professionalism in franchisee recruitment and selection

    How can you interest a prospect if you don’t respond to their request for information within 12 to 24 business hours? Well, that’s just it! You see, this is what happens 80% of the time. And why? Because of a lack of professionalism in recruitment and selection. Without a disciplined and accurate recruitment process, you will not succeed. So why spend if you’re not ready to recruit?

    Third factor: Targeting the right people

    In franchising, success comes with the right financial situation and then the right person. Don’t waste your time with people who don’t have the right financial situation to invest in your franchise. Be extremely clear from the beginning about the financial investment required. Otherwise, it is unproductive, discouraging and expensive.

    Fourth factor: A skilled recruiter

    The person in charge of recruiting must be qualified and know all the ins and outs of the franchise as well as relevant legal and business issues. Trust is a key element in the process. The person who will be your spokesperson in this recruitment phase must be the best person to do it.

    Fifth factor: A clear and informative process

    You are building a network and know all the ins and outs. For a prospect, from the beginning to the end of the recruitment process, all the information they will receive will help them to have realistic expectations. They aspire to succeed in business to achieve live-changing dreams. It is only natural to give them all the answers to their questions before taking the plunge. By remaining open and transparent, you will develop confidence in the prospect, which will allow them to envision a lucrative future.


    The process of recruiting and selecting a franchisee is strategic and requires serious investment. The entry fee generated is only used to fund recruitment, training and start-up support—not to create short-term profits for the franchisor.

    In the competitive world of franchising, you should consider investing a minimum of 35-40% of the entry fee in recruiting a franchisee.

    Average entry fee to Canada: $40,000
    Minimum recruiting expense: $15,000 PER franchise

    Your investment in growing your business will impact your long term performance.

    Next blog: Mastering your development plan

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