The Missing Piece in Franchising: Developing the People Who Drive Revenue

Franchising is built on proven systems, processes, and operations. Franchisors create playbooks that keep the brand consistent and scalable. But there’s one area that often receives far less attention than it deserves: developing the people who directly define the reputation, lead the customer experience, create and claim value, and generate income.

Operations manuals can tell you how to run the business, but they rarely address how to grow the business through effective, productive and meaningful conversations. Franchisees may be given qualified leads, but if they aren’t equipped to convert conversations into commitments, opportunities are missed, and revenue is left on the table.

Recognizing the Symptoms

Franchise networks often experience predictable challenges when sales development is overlooked:

  • Leads that don’t convert – Money is spent on marketing (FDD – Item 11), yet the incoming calls and website inquiries fail to turn into actual sales. The blame shifts back and forth between franchisee and franchisor, when the real issue is the ability to uncover motivation, establish a decision criterion, timeline and priorities when sales conversations occur.
  • Order takers instead of salespeople – Associates who show up on time, look professional, and follow the script may still miss the most important part: uncovering needs, creating value, and asking for the commitment. Without that, the brand becomes commoditized.
  • Franchisees unprepared to lead sales teams – Many franchise owners come from operational or technical backgrounds. Leading a sales team—or even one salesperson—requires coaching skills they’ve never developed. Without guidance, salespeople drift, become complacent, while revenue and results stagnate.
  • Dependence on “bought” business – Paid leads from Internet scrapping and digital channels once worked well. But as Google becomes more expensive and AI changes the way people search, franchisees that don’t know how to earn business through relationships, referrals, and prospecting fall behind.

 The Impact of Not Solving It

When these issues persist, the entire franchise system feels the consequences. Revenue plateaus, royalties decline, and frustration builds between franchisor and franchisee. In some cases, the lack of sales development even causes high-potential operators to disengage, drop to level of survival or leave the system altogether.

The truth is clear: a franchise network is only as strong as the people driving revenue at the unit level. Without the skills to sell, coach, and lead, even the best operational systems can’t reach their full potential.

A Commitment to People Development

This is where the focus must shift. At Franchise Sales Pro, the commitment is not simply to process, but to people. Supporting the network means:

  • Training sales associates to move past scripts and into real conversations that create and claim value.
  • Equipping franchisees to lead salespeople and teams, even if they’ve never sold before.
  • Embedding weekly coaching and accountability so training doesn’t fade after the webinar or workshop.
  • Building confidence to generate earned business, reducing reliance on expensive lead sources.

When people are developed in these areas, the franchise system doesn’t just grow revenue, it grows stronger relationships, more confident operators, and a healthier network overall.

Final Thought

Franchisors already invest heavily in processes, systems, and compliance. But the future of growth lies in a different kind of investment: developing the people who bring in the revenue. Because in franchising, as in any business, it’s not the system alone that drives results—it’s the people who bring that system to life every day.

Top-Line Thinking: The Power of Understanding Fixed vs. Variable Costs in Sales Growth

Top-Line Thinking: The Power of Understanding Fixed vs. Variable Costs in Sales Growth

In the world of business — especially for franchise operators and self-starting entrepreneurs — understanding your financial structure is key to achieving scalable, sustainable growth. Yet, many overlook how their costs interact with their revenue goals, especially when it comes to aligning those costs with proactive sales activities.

So, let’s break down a deceptively simple concept: the difference between fixed expenses and variable expenses — and why it matters if you want to generate more top-line revenue.

Fixed vs. Variable Costs: What’s the Difference?

At a glance:

  • Fixed expenses are those costs that stay consistent month-to-month. Think rent, lease payments, software subscriptions, base salaries (including benefits and taxes).
  • Variable expenses fluctuate depending on priorities, sales volume, growth efforts, client acquisition and lead generation. These also include commissions, bonuses, incentives and yes — sales training. (Question: Are you still retaining most of the revenue when a sale is made and you pay out commissions?)

Why does this matter?

Because you don’t grow a business by trimming what’s already fixed. You grow by investing in the people, processes, and activities that generate revenue. That’s your variable cost lever — and it’s what moves the needle.

Sales Efforts = Variable Investment

This is the shift in thinking I want to champion: sales expenses are not just costs; they are investments. When you hire and onboard new sales reps, launch a targeted marketing campaign, or invest in sales training, you’re not just spending money — you’re planting seeds. These are investments in revenue growth, not arbitrary expenses. And yes, they’re variable. You control the pace, the volume, and the direction.

The Overlooked Lever: Capacity

Here’s where many franchisees and business owners stall — they think, “I’m making money. I’m paying myself. I must be on the right path.” And yes, you are. You’ve moved beyond survival mode. You’re probably covering your fixed expenses and have begun seeing some consistent take-home pay.

But here’s the truth: you might be operating far below your full capacity.

If your fixed costs are paid and your business has unused capacity — open appointment slots, underutilized staff, or operational bandwidth that’s sitting idle — you’re leaving exponential profit on the table.

Let’s break it down:

  • Fixed costs are already covered.
  • Every new client, order, appointment, or service added from this point forward generates higher profit margin revenue, because there’s no additional fixed cost.
  • That means increasing from 70% to 85% capacity can double or triple your net income, even if top-line revenue only increases modestly.

This is where proactive sales activity fuels profitability. It’s not just about making more sales — it’s about filling your open capacity to maximize the return on fixed infrastructure you’re already paying for.

A Framework for Franchise Operators and Self-Starters

Let’s talk about strategy. Here’s a 3-question diagnostic assessment I encourage every growth-minded business operator to run regularly:

  1. Do you believe there are more opportunities in the marketplace?
    • If yes, great. The market is alive — so the question becomes: are you poised to capture them and fulfill your open capacity?
    • If no, it may be a matter of awareness, a product/service refresh, new approach or repositioning your unique selling proposition (USP), not demand.
  2. Do you have the right people on the bus to convert those opportunities into revenue?
    • Think beyond warm bodies — is your team applying the best selling skills, practicing productive behavior, and maintaining the right attitudes, beliefs and confidence during adversity?
    • Talent is a variable lever, and an investment. And not just in hiring — but in equipping them with tools, training, and process.
  3. Are you prepared to work with your team to capitalize and convert the opportunities you uncovered?
    • If you hesitate, this is your call to action. Sales enablement isn’t optional — it’s essential.
    • This is the point where investing in training becomes a variable expense that has a defined return.

Sales Training as a Revenue Catalyst

Often, business owners hesitate to invest in sales training because it doesn’t feel “urgent.” But here’s the paradox: Training your team to close better, faster, and more frequently is the most direct path to higher top-line revenue. Think of sales training not as a seminar, but as a system upgrade for your revenue engine. You’re teaching your people how to create, pursue, and win more deals — deals that fund everything else. Sales is the engine that pulls the train.

The Proactive Path to Top-Line Revenue

Let’s stop thinking of sales as a passive outcome of having a good product or service. Revenue is the result of intentional, proactive, and consistent sales efforts.

This means:

  • Understanding where your fixed costs cap your profit ceiling monthly. Before you earn a single dollar of profit, you must first cover your fixed costs
  • Embracing and evaluating variable costs that tie directly to your growth goals.
  • Recognizing underused capacity as a missed profit opportunity — and filling it through focused sales execution.

Final Thought: Build for Growth, Not Just Survival

If you’re a franchise operator, a self-starter, or a leader wondering why revenue has stalled — look at your financials. Not just the bottom line, but the top line and what’s feeding it.

Are you fully utilizing your capacity?

Are you spending reactively or investing wisely to increase top-line revenue?

Are you willing to invest one dollar in variable costs to gain three in return?

Because if you believe there are more opportunities in the marketplace, and you’re willing to work with your team to capture them — then the next level of profit isn’t far away.