How to Leverage the Signing of a Franchisee

Signing a new franchisee is a huge milestone for both the new operator and the franchisor, but the real work begins after the ink dries on the contract. Too often, franchisors celebrate and miss an opportunity to market the momentum to gain new inquiries in other markets.

Here's how to turn that signed contract into a win-win for everyone.

Boast About the New Franchisee in “Public Displays of Affection”

Telling the story of a new franchisee on the brand’s social media and website or in press releases is another way to make the honeymoon phase of a new franchisor/franchisee relationship a little sweeter.

“Sharing the franchisee’s story on platforms like Facebook, Instagram and LinkedIn connects with local audiences and reinforces the brand’s growth and momentum nationally,” said Anne Huntington Sharma, president and board member of Huntington Learning Center. “Brands can create a movement that people want to be part of by sharing teasers and countdowns leading up to the official announcement, followed by dynamic visuals and testimonials that celebrate the new franchisee’s journey.”

Posting on social media isn’t the only way to garner publicity. Brands can send press releases to local journalists. The press release should include quotes from both the franchisor and franchisee, along with media elements like photos or a day-in-the-life video. This will make it fast and easy for a journalist to put together a story about a new opening. Getting your brand’s name mentioned in a journalistic news story has a greater impact than running an ad, according to one study.

Mentions in editorial content benefit both the franchisee — who will likely see an increase in revenue — and the franchisor. When news consumers see and hear about a successful business, they may look into becoming franchisees too.

Of course, potential investors may not be able to attend events in person, especially if they live far away from the opening. Digital events, such as live Q&A sessions or webinars with new franchisees, can be another way to celebrate both a new franchisee and help others see the appeal of your specific franchise opportunity.

Cultivate a Sense of FOMO (Fear of Missing Out) to Potential Franchisees

Experts have defined FOMO as a fear “that others might be having rewarding experiences from which one is absent.”

“Sharing these stories across channels reinforces the brand’s growth and resilience,” said Sharma. “Over time, these success stories showcase a strong foundation and highlight the brand’s upward trajectory, which helps potential franchisees envision their journey with the brand. By showcasing both the personal and financial rewards of franchise ownership, brands can inspire others to see the long-term value and potential impact they could create within their communities.”

Most potential franchisees take months — if not years — to sign an agreement. One success story may be all they need to move across the finish line.

Provide logistical and financial support to host events celebrating a new opening or a transfer of ownership. “Grand openings or community events with a new franchisee allow potential franchisees to experience the brand firsthand and witness its community impact,” said Sharma. “Prospective franchisees will get a close-up view of the brand’s supportive network and vibrant community. The events emphasize the value and excitement of joining a growing brand and making a difference.”

Make a Great Impression With the New Franchisee

Never forget the power of good old-fashioned word-of-mouth recommendations. Chances are your new franchisee has met other prospective operators on their journey towards signing on the dotted line with you. The more support you give new franchisees, the more likely they are to praise your brand to others looking to start up a new unit.

The onboarding process sets the tone for the entire franchisee relationship and the tone of how they talk about you to others. In those first few months, be sure to reinforce their decision. Getting into the entrepreneurship game — even with a relatively safe option like franchising — can be scary. The more support you provide, the more they’ll rave about you.

You want franchisees to feel like they can contact you with questions and problems. Show them you’re there to support them, not judge or reprimand them. The phone calls, emails, webinars and other communication should consist of training, operations manuals, legal tips and brand standards.

And remember, when a new franchisee signs an agreement, don’t forget to celebrate operators who have been with you longer. “Success stories showcase a strong foundation and highlight the brand’s upward trajectory, which helps potential franchisees envision their journey with the brand,” said Sherma. “By showcasing both the personal and financial rewards of franchise ownership, brands can inspire others to see the long-term value and potential impact they could create within their communities.”