--- title: "Indianapolis Business Journal: Co-working space set to open in Carmel as firm seeks more franchisees" url: https://burnaze.com/article/26418034-c0b4-44bb-8f12-b8db736eddd6 source: "1851 Franchise" original_url: https://1851franchise.com/indianapolis-business-journal-co-working-space-set-to-open-in-carmel-as-firm-seeks-more-franchisees-2707541 category: "Franchise Industry" industry: "Franchise Industry" topics: ["Development & multi-unit"] published: 2018-08-16T19:14:51.000Z modified: 2026-11-01T02:51:47.735Z image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/c98da86896358ac02d3a380498f839a1369.jpg --- # Indianapolis Business Journal: Co-working space set to open in Carmel as firm seeks more franchisees **TL;DR:** The traditional franchise sales model is failing due to prioritization of short-term success over long-term support for franchisees, with bloated broker fees and a lack of transparency harming the industry. A company called ROS offers a framework to help franchisors optimize their development efforts and prioritize transparency and long-term franchisee success. *originally published in 1851 Franchise on 2018-08-16. [Read the original](https://1851franchise.com/indianapolis-business-journal-co-working-space-set-to-open-in-carmel-as-firm-seeks-more-franchisees-2707541).* ## Story The traditional franchise sales model is failing. Brands prioritize short-term success in the form of unit signings and franchise fee collections. Bloated — and undisclosed — broker fees leave them low on funds to support the small business owners they’ve just signed. Development teams accept sweeping industry averages, like a $13,000 cost per lead or a 1% deal-to-lead rate, rather than looking at the reality of their own system and examining the operational factors that could be influencing franchisee interest. Closing a deal has become the goal, not signing, onboarding and supporting a right-fit owner who will truly be successful in the system, and this pushes a lack of transparency that harms the entire industry. While a recent FTC settlement may represent some movement in the right direction, the industry at large needs a reset. - The industry data stuff in franchising, it reminds me of that phrase, "The road to hell is paved with good intentions." I don’t mean that in a sarcastic or humorous spirit; I'm serious. I think people in our industry are trying to offer help. A lot of times, what happens is people start really vomiting from the mouth, and that ends up turning into just mistaken beliefs, false beliefs, unknowingly and all. Most of the time, I really do believe it's unintentional. But that, in many ways, is the result of people not really knowing even their own data and being hungry for just anybody that comes along that can offer you some kind of nugget or inspiration to help you have what you think is a baseline or a milestone or some kind of KPI. Nobody's stopping to say, "Okay, what's the basis of that? Where does that come from?" We just hear something in our industry, and we're often guilty of just adopting it. One of them, Nick, is the old thing about the 1% rule. I heard that for years going to conferences: “If you get about 100 leads, you'll sign one of them, and if you get 1,000, you should be signing about 10.” It still is out there. It's out there a lot less today because enough franchise owners are saying, "Wait a minute," but we know that the industry average now is 25 basis points, maybe 50. If you're building your whole platform and thinking that, okay, if I'm at the industry average, and you just kind of should show up, should be signing one out of a hundred, and the real number for you might be one out of six hundred, you've got a problem. You've got a problem. And unfortunately, this is the reason why ROS exists. It's an unfortunate thing, because if all of that wasn't there, we probably wouldn't have a business. And the truth is, my business is at record sales. We've got more brands wanting to work with us than we will take on. Again, I'm not storytelling; I'm not pontificating or anything. - The Recruitment Operating System®, a framework developed to help franchisors optimize their own development efforts rather than relying on broker networks or lead generation agencies. A strong recruitment system, though, must have the right priorities. Coley advocates for transparency, attention to unit-level profitability and recruitment strategies that are aligned with long-term franchisee success. - At ROS, we'll talk with any brand. We will even tie our compensation to the performance of your franchisees over five, 10 or 15 years,” Coley said. “We aren't brokers or an FSO. Think of us as the franchisor to your franchise development. We provide manual systems and analytics for lead generation, appointment setting, sales and onboarding through 36 months. Our model is focused on scalability, durability and wealth generation for franchisors and franchisees.” Reclaiming the potential of the industry requires development leaders to confront the uncomfortable realities of how franchising has changed, from hidden broker kickbacks to financial models that make ownership increasingly inaccessible for hopeful entrepreneurs. Coley highlights that more people than ever are actively choosing franchising, and there are still many franchisors who truly care about the success of their franchisees. - “We have a proven system that works, and we can show any franchisor the data,” he said. “Personally, I feel like I'm finally getting the opportunity to make meaningful changes in our industry, which is very fulfilling.” ## Entities - 1851 Franchise (publication) - Franchise Industry (sector) - franchise development (topic) - franchisee support (topic) - Federal Trade Commission (regulator) - transparency (topic) - franchise sales model (topic) - broker fees (topic) --- Originally reported by 1851 Franchise (https://1851franchise.com/indianapolis-business-journal-co-working-space-set-to-open-in-carmel-as-firm-seeks-more-franchisees-2707541). Summarized by Burnaze (https://burnaze.com/article/26418034-c0b4-44bb-8f12-b8db736eddd6).