Franchise sales isn’t a linear checklist. It’s a regulated, strategic sequence that protects your brand, qualifies the right franchisees, and sets your system up for long-term success.
If you’re a new franchisor, this guide walks you through every step, what happens when, what the franchisee expects, and how to stay compliant from Day 1.
1. Initial Inquiry & Short Form Submission
When someone expresses interest in your franchise, that moment is not casual, it’s pivotal. Candidates don’t casually “request information.” They are imagining a new life, a new income stream, or a complete reinvention of their career. Your response should match the gravity of that moment.
Before They Ever Fill Out the Form
Most franchise candidates have already researched your brand quietly. Before a franchisee candidate raises his or her hand, he or she will be exploring your website, social media channels, and doing a deep dive into your digital media.
This means by the time they express interest:
- They’re already aware of your brand story
- They’re gauging professionalism
- They’re comparing you against competitors
- They’re deciding whether you “feel” legitimate
So your short form and welcome experience must reinforce trust, not break it.
What Triggers this Stage
A candidate expresses interest by:
- Filling out your franchise info form
- Responding to a “Franchise with Us” CTA
- Contacting you via social media
- Scheduling through an embedded calendar
- Clicking from a broker referral
- Downloading your digital brochure
Every one of these actions signals intent. Avoid long, intimidating forms. The goal is to qualify, not overwhelm.
Your Immediate Response Must Feel Premium
This is the moment where candidates decide: “Do I trust these people with my future?”
Your welcome sequence should include:
- A branded welcome email
- A powerful welcome video (founder-led works best)
- A short digital brochure showing brand story, values, unit economics framework, support, and next steps
- A direct scheduling link for the introduction call
Make this step feel organized, warm, and confident.
2. Pre-Qualification Call (10-20 Minutes)
This is the first live touchpoint. It matters more than most founders realize. Candidates decide within seconds whether your brand feels approachable, trustworthy, and aligned with their goals.
Purpose of This Call
- Establish rapport
- Confirm basic financial and experience fit
- Understand why they are exploring franchising now
- Start building a genuine relationship
- Set expectations about next steps
This is not the time for heavy sales pressure.
What You Should Ask
Keep it conversation-driven. For example:
- “What’s going on in your life that’s making you explore business ownership now?”
- “What about our brand caught your attention?”
- “Is the estimated investment in your comfortable range?”
- “Are you looking for income replacement, supplemental income, or long-term asset building?”
- “What’s your ideal timeline for ownership?”
These questions reveal motivation, seriousness, and capability.
What You Should Communicate
- Let them talk
Gain insight into their story. - Be transparent
Don’t hide financial details or commitments. - Schedule your next call
End every conversation with a scheduled next step.
Outcome of This Stage
✔ Move them forward into the Formal Application, OR
✘ Politely decline
Either way, protect pipeline quality.
3. FDD Delivery & Item 23 Receipt (Start of 14-Day Waiting Period)
Now you transition from “sales conversation” to legal compliance.
Before Sending the FDD
Always explain:
- What the FDD is
- What the receipt page means
- The 14-day waiting period
- That signing the receipt is not signing a contract
Never disclose an FDD without informing the candidate about the process. The FDD Receipt is not an agreement.
Once They Receive the FDD
They must sign the FDD Receipt, which:
- Confirms legal disclosure
- Starts the federally required 14-day cooling-off period
- Allows you to proceed to deeper discovery steps
You cannot:
- Accept money
- Sign a franchise agreement
- Pressure them to accelerate the process
This period protects both parties.
4. Formal Application + Financial Verification
This is where you validate readiness.
What You Collect
- Full franchise application
- Statement of Net Worth
- Liquid capital verification
- Professional background
- Resume or LinkedIn profile
- Authorization for background + credit checks
This step separates curious shoppers from serious buyers.
Why It Matters
You’re not just selling franchises.
You’re awarding territories to people who will represent your brand.
A weak franchisee damages:
- unit-level performance
- validation
- reputation
- resale value
- the system’s long-term trajectory
Strong screening here prevents long-term regret.
5. Territory Review & Site Pre-Screen
This step prevents poor territory decisions that haunt franchisors for years.
What You Validate
- Demographic fit
- Traffic patterns
- Density
- Competition
- Viability for target customer
- Scalability in the region
For location-based franchises, you may also begin early site discussions.
For service-based models, it's boundary definition and mapping.
Objective
Ensure that the candidate’s desired territory:
- Is available
- Is viable
- Supports your unit economics model
- Aligns with your growth strategy
Poor territory assignments = poor outcomes.
6. Three-Step Discovery Call Series
Start with these 3 core discovery calls:
- Opportunity Call
- Transformation Call
- FDD + Territory Review Call
These three calls are where the candidate becomes emotionally and logically connected to your brand. This is where they begin saying: “Yes, this is the right opportunity for me.”
6A. Opportunity Call: Unit Economics (1 Hour)
This is the first deep-dive into the business model.
What You Cover
- Estimated Initial Investment (Item 5)
- Ongoing fees (Item 6)
- Startup costs (Item 7)
- Item 19 financial performance
- ROI potential and expected startup curve
- Income replacement vs legacy model vs lifestyle model
6B. Transformation Call — Operations + Support (1 Hour)
This is where you paint the picture of what life as a franchisee looks like honestly and authentically.
You Cover:
- Day-in-the-life of a franchisee
- Operational realities (labor, hours, tasks, KPIs)
- Your support system
- Technology + tools
- Your differentiators
- What onboarding feels like
- What success looks like (backed by real data)
The goal is to show how your system transforms franchisees.
6C. FDD + Territory Review Call (1 Hour)
This is the compliance-heavy step where you review the FDD sections that affect investment, risk, and structure.
You Review:
- Fees
- Royalties
- Estimated startup costs
- Item 19
- Territory boundaries
- Obligations
You again confirm FDD Receipt accuracy and encourage franchise attorney review.
7. Discovery Day (1-2 Days in Person)
Discovery Day is a relationship-driven experience designed to build mutual confidence.
Candidates Should:
- Meet your leadership team
- Tour HQ or flagship operations
- Experience culture, values, and expectations
- Understand onboarding and support
- See the systems behind the success
- Ask deeper financial + operational questions
This is not a sales event, it’s a fit event.
Your Objective
Determine whether this person can:
- Represent your brand
- Follow the system
- Be a positive validator
- Protect your reputation
- Grow as an operator and partner
This is your final qualitative filter.
8. Background, Legal & Financial Review
Before awarding a franchise, conduct full verification:
- Background check
- Credit check
- Litigation check
- Criminal records
- Entity structure review
- Financial verification
This protects your brand integrity.
9. Approval → Franchise Agreement Signing & Fee
Once the candidate is approved:
Steps:
- Provide the final Franchise Agreement
- Allow attorney review
- Ensure 14-day FDD period has passed
- Sign agreement
- Collect Initial Franchise Fee
10. Lease Negotiation, Architecture & Build-Out
Once signed, the franchisee moves into development.
Real Estate Steps:
- Site selection
- LOI negotiation
- Lease review by attorneys
- Landlord negotiation support
Build-Out Steps:
- Architectural drawings
- Permits
- Construction management
- Equipment orders
- Inspections
Your role is to protect brand standards and prevent costly mistakes.
11. Training + Pre-Opening Marketing
This is where you transform franchisees into operators ready for Day 1.
Includes:
- HQ classroom training
- Field training
- Technology setup
- Systems + software
- Hiring support
- Local marketing launch
- Pre-opening buzz campaign
- Grand opening checklist
Your job is to make them ready, not overwhelmed.
12. Grand Opening + Post-Opening Support
The first 90 days determine:
- profitability
- confidence
- long-term momentum
Your Support Should Include:
- On-site or virtual opening support
- Daily or weekly coaching calls
- Review of KPIs, sales, and marketing
- Troubleshooting and corrective actions
- Performance milestones
This is where you create successful early operators and future validators.
