Selling is a science. 

Selling is fun. 

Selling is a game. 

The successful franchise sales person learns the rules of the game and learns how to develop a sales department or group which can properly and correctly award franchise units to the right prospective franchisees.

The beginning franchisor organization is generally divided into two distinct areas or organizations: 

(1) sales organization and 

(2) operations organization. 

The sales organization is responsible entirely for developing the leads, evaluating and signing new franchisees. The sales organization, generally under the direction of a vice president or director of sales, will visit with all individuals who contact the organization seeking information about possibly becoming a franchisee.

The director or vice president of sales is responsible for awarding (selling) franchise units to prospective franchisees. The sales director needs to work with the executives of the franchising organization to determine certain business opportunities which the franchisee will be offered:

    Priority of target markets

    Exclusive territory

    Speed of penetrating markets

    Single unit franchising versus multi-unit franchising

    Financial resources required

    Personal resources required

    Time required to start franchise after signing

    Training programs

     Site selection

     Architectural design

     Headquarters visitation

     Field support services

     Grand opening

The sales manager will be responsible for working with his sales force which initially may consist simply of himself. The director needs to be responsible for all recruitment and signing of prospective franchisees. The recruitment methods generally would include print, electronic media, trade show exhibits, direct mail, advertising, reply cards (located at franchisor's existing outlets) and public relations campaigns. Additionally, the sales group will solicit referrals from accountants, lawyers, bankers, and other professionals in the area. Many franchisors have their greatest growth from referrals by successful existing franchisees.

The recruitment process must also look at various communication, advertising, and promotion options to find those that would be the most cost efficient and effective in reaching a targeted profiled prospect. Because of the many options available and related costs, it is important to develop an effective and affordable recruitment strategy for reaching the profiled prospects. In many cases it is advisable to advertise in local newspapers, visit with bankers, and the Chamber of Commerce in soliciting referrals for that specific community.

The franchisor will also run into a serious cost factor when soliciting new franchisees. Many franchise sales people operate on a salary and commission basis. They generally may be paid a base salary of $24,000 or $2,000/month plus anywhere from $1,000 to an amount equal to half of the franchise fee. An average sales person earns approximately $66,000. Some franchise sales people have been known to earn more than the CEO of the organization for a specific year. One franchisor of a motel chain was very proud of the fact that in one year 3 of his sales people had earned over $225,000 each in sales commissions. Yes, they had earned more than the CEO for the organization that year.