The franchise opportunity

Franchises are one of the most attractive markets for independent sales agents because a single relationship can unlock dozens or hundreds of locations. Australia has over 1,200 franchise systems comprising nearly 100,000 individual franchise units. Each one needs products and services, and many purchasing decisions are made either at the franchisor level or by individual franchisees.

Understanding the franchise structure

The franchisor

The parent company that owns the brand, sets the standards, and manages the franchise network. Selling to the franchisor can result in a rollout across the entire network.

Individual franchisees

The business owners who operate individual locations. They make some purchasing decisions independently, within the guidelines set by the franchisor.

The buying process

This is where franchises differ from other businesses. Some purchases must go through the franchisor for approval. Others can be made independently by franchisees. Understanding which category your product falls into is critical before you start selling.

Selling to the franchisor

If you can get your product approved or adopted at the franchisor level, the results are significant. One deal can mean 50 to 500 locations.

How to approach

  1. Research the franchise network thoroughly. Understand their brand, their size, their challenges, and their existing supplier relationships.
  2. Identify the right contact. This is usually the operations manager, procurement manager, or head of franchise support.
  3. Lead with network wide value. "This product has been shown to increase average revenue by 15% per location" is far more compelling than individual features.
  4. Offer a pilot. Suggest a trial with 3 to 5 locations before committing to a network wide rollout.
  5. Be patient. Franchisor decisions can take months and involve multiple stakeholders.

Selling to individual franchisees

Some products are purchased at the individual level. These sales are faster but need to be repeated at each location.

How to approach

  1. Start with one location. Prove the value at a single franchise before approaching others.
  2. Leverage success across the network. "I have been working with the [location] franchise and they have seen [specific result]. I thought it might interest you too."
  3. Attend franchise conferences. These events gather franchisees from across the network in one place.
  4. Ask for referrals within the network. Franchisees talk to each other regularly. A recommendation from a peer is powerful.

Products that sell well to franchises

Building franchise relationships on Zepys

Zepys can help you identify products that are well suited to franchise networks. As you build relationships within a franchise system, each successful location strengthens your position for the next, creating a compounding effect that is unique to franchise sales.

The compound effect

Franchise sales reward patience and persistence. A single franchisor relationship can become your largest and most stable income source. The agents who specialise in franchise sales and build deep relationships within networks often build extraordinarily stable commission portfolios.