3 Ways That the Fastest Growing Franchises are Gaining New Franchisees

As competition grows to sell franchises, many franchise brands are turning to innovative ways to attract new franchisees to their systems.


From leveraging social media to offering unique incentives, the fastest-growing franchises are employing a variety of strategies to expand their reach and appeal to potential investors.

 

In this blog post, I explore three effective methods that these franchises are using to gain new franchisees.

“The No. 1 Franchise Recruitment Tool”

With over 5,400 Franchisees in four countries, and growing at the rate of around 200 per year, Jim’s Group is the largest franchise group in the southern hemisphere.

 

“This is the number 1 franchise recruitment tool,” says Jim’s Chief Marketing Officer, Joel Kleber, in this video. “I explain why it is and if you're not using it, why you should.”

Social Media

I can’t recall the exact figures, but at a recent Franchise Association of New Zealand (FANZ) meeting which I attended, a representative from the Caci Clinic Franchise said that their network throughout New Zealand had grown from around 50 to more than 80 franchises in a few short years.


That’s staggering growth considering New Zealand is a small country and Caci’s skincare, laser and injectables clinics aren’t cheap to set up.


One of the secrets to Caci’s success, she said, is their use of social media to reach their target markets.

Make It Uniquely Easy to Buy a Franchise

Lowering barriers to entry and reversing risk have always been part of franchising’s recruitment marketing strategies but it’s astounding how many franchisors expect prospective franchisees to come up with all the funding for their franchise themselves.


Nearly all franchises charge an initial or upfront fee, a one-off payment made by a new franchisee to the franchisor upon joining the franchise. Plus there’s the cost of any necessary plant and equipment, stock or materials, premises leasing and of course you need working capital to pay operating expenses until your sales cover your costs.

 

Smart franchisors make the buying decision simpler in the same way that retailers have for decades. They lower entry barriers by reducing the upfront cost to the franchisee, making the franchise purchase more affordable.


A classic example is fried chicken franchise Chick-fil-A which charges an upfront franchise fee of just US$10,000. No wonder they have literally thousands of people lined up to buy a franchise, but the quid pro quo is that as a franchisee, you have to share a large proportion of your profits with Chick-fil-A.

Caci Clinic, which I mentioned before, assists franchisees to obtain the expensive equipment needed to operate their clinic by leasing the equipment to them rather than requiring them to purchase it.


Even though the upfront fees and capital costs of most Jim’s Group franchises are relatively low, Jim’s understands that most of their franchisees have come from the regular income of paid employment and assists them in making the transition to self-employment by offering a minimum income guarantee for the first few months.

Need more ideas for supercharging your franchise growth?

Download your free ebook 

15 Innovative Franchisee Recruitment Marketing Tactics Free eBook

What’s the biggest issue for franchisors the world over? 


Yep, it’s getting franchisees on board. But how is it that some franchises just keep powering forward, year after year, while others just tread water?


My free ebook 15 Innovative Franchise Marketing Tactics You’re Probably Not Using Yet (But Should Be) looks at how some of the world’s leading franchises have grown their networks – and how you can supercharge your growth in 2024 and beyond!

Free Report Offer:

Expert Evaluation of Your Current

Franchisee Recruitment Marketing Process 

Free Franchisee Recruitment Marketing Assessment Report

Is your marketing working as well as it could? Could you be getting more qualified leads?


Over many years in marketing and franchising, I have sold many franchises and developed a keen understanding of best practices in franchisee recruitment marketing and selection.


I would welcome the opportunity to share that understanding with you with a Free Evaluation of your current Franchisee Recruitment Marketing Processes. Simply send me a few details about your franchise and I'll review your current franchisee recruitment marketing from a prospective franchisee's perspective and send you a Free Report within 2 - 3 days.

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