Franchise Your Business - Selling Your First Franchise

How do you franchise your own business?  How do you sell the first franchise of your business?


1.  It starts with Structure.  Don't sell first, then figure out how to structure the concept.  Having the appropriate legal, business and operational structure in place are critical to being able to successfully franchise a business.  Not only can it be illegal to present a franchise prior to having the appropriate registration and documentation, it also can be an enormous waste of time and resources.  $30,000 seems like a lot of money in some cases, but it isn't worth the trouble and issues that will arise from selling a franchise the wrong way.

2.  Good evaluation and screening makes for a happy franchise system.  Most franchise buyers are not the right fit.  Do your due diligence and take the time to truly evaluate each buyer as you present the model.  Typically, it takes anywhere from 75-150 leads to sell a franchise depending on the concept and initial investment, if you have 5 or 6 options to choose from, obviously you probably aren't working with one that should be your buyer.

3.  Understand the process for selling a franchise.  The franchise marketplace is full of franchise lead generation options.  These are companies that advertise and market franchises for sale.  These organizations generate leads to sell franchises to.  The average buyer is investigating 6 - 12 franchises at one time, again, this is where the 75-150 leads per sale ratio comes to play.  You need volume and consistent processes to not only generate leads, but to screen and sell to them.

4.  Separate yourself from the sale.  In my experience, it is imperative that the franchisor (company founder or owner) cannot be involved in the first stages of the sales process.  If someone calls to speak with a franchise organization and gets the owner on the call first time, it seriously diminishes the value they have to offer.  They are just too available to be that important.  As the business owner, you should be the last conversation with the prospective buyer, not the first.  If you do not have the resources to bring on a sales staff, there are options to outsource your sales to organizations such as Franchise Marketing Systems.

5.  Be consistent.  Franchise systems take several years to get to significant profitability.  They operate with a snowball effect in most cases where with success and profitability, new franchisees are brought on through referral and word of mouth.  The revenues grow with the growth in royalty income and new business development, but the first year of franchising is slow and takes consistent marketing/sales efforts to get the brand moving.

Franchise Marketing Systems Clients have continued to experience success in 2012 – the partnership between the FMS team of consultants and the entrepreneurial vision of leaders has created a truly synergistic relationship.  To Date, 406 new franchises have been sold and brands have been developed in new and interesting markets.

Find out more on how to Franchise Your Business with one of our free “How to Franchise Your Business Webinars” –

The following brands have sold their first Franchise in 2012, taking that first step towards national growth, Franchise Marketing Systems can take you there.


Champion Cheesesteaks - Food Truck Franchises

Blue Chip Pet Care

Your Pro Kitchen - Shared Kitchen Franchise

Snoopit Imports – Import License

Sign City – Sign and Graphics Franchise

Hood Cleaners of America

My House Fitness

Park Select - Park Select Franchise 

Pet’s Health Choice

Strands of Beauty

For a Complete List of FMS Clients Visit Here:

Why do businesses franchise? 

Time – Allows for fast and streamlined growth.

People – Franchise owned and operated businesses always outperform company owned locations.

Capital – Franchisees invest in your business without giving up control.

For more information on how to franchise your business, contact us:

Franchise Your Business

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