Development Budgets Increasing For Franchises Across All Growth Stages

Over 63% of franchise systems plan to spend more to recruit new franchisees in 2020, and a closer look at key segments shows that confidence is strong in franchise systems in all stages of growth. 

Plans to maintain or increase spending were strong across emerging, established and large franchise systems, according to a survey across the Franchise Ventures demand-generation platform.

“So many factors affect how fast a franchise system can grow,” said Michael Alston, president of Franchise Ventures. “In today’s competitive digital marketplace, growth-oriented franchises need many channels to reach the number of prospects needed to meet system growth goals.”

The December 2019 survey by Franchise Ventures included active U.S. franchise customers, with franchise systems of 2,500 units or less, and budgets as high as $500,000 for 2019.

  • Emerging franchises, with fewer than 50 units – 60% plan to increase their budgets in 2020, and 80% will budget the same or more as this year. The average budget this year was $67,000, and 60% advertise on multiple franchise recruitment sites.
  • Established franchises, with 50 to 99 units – 57% plan to increase their budgets in 2020, and 86% will budget the same or more than this year. The average budget this year was $108,000, and 73% attract prospects through multiple sites.
  • Large franchises, with 100 or more units – 64% plan to increase their budgets in 2020, and 91% will budget the same or more than this year. The average budget this year was $225,000, and 75% reach potential franchisees through multiple sites.

Franchise Ventures is the largest demand generation platform serving  thousands of growing franchise systems in the United States and Canada. Its franchise lead-generation businesses include Franchise.com, Franchise Solutions, Franchise Gator, Franchise Opportunities, Franchise For Sale, and BusinessBroker.net, and together they provide the largest collection of prospective franchise inquiries in the U.S.

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Published on Thursday, December 19th, 2019.

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