Online Portals Drive Franchise Discovery
According to an April 2020 survey of interested franchise buyers, online franchise opportunity directories and their associated mobile apps play an integral role not only as a tool for comparison shopping, but also for discovery and consideration of less familiar franchises.
Over 79% of prospective buyers chose to submit an inquiry to a franchise brand with which they had very little or no familiarity. In other words, they discovered and reviewed franchises meeting their criteria during the visit. This high percentage underscores the value of these directory sources to buyer consideration of franchises that may not be on the radar screen of prospects.The 79% is the sum of “completely unfamiliar” and “vaguely familiar” responses.
From additional analyses of internal company data, inquiries are often concentrated within a category where options to a familiar brand in the category are explored and compared. Looking across all inquiries in March, 48% of prospective buyers chose one or more franchise options from a single category.
Further, in March, as is typical in most months, almost 43% chose to inquire about a single franchise only. The brands receiving these inquiries enjoy the opportunity to exchange information without any interference from competing brands.
The “Mystery Shop” survey is conducted monthly by FranchiseInsights.com from a sample of franchise inquirers across the FranchiseVentures lead generation platform. The most recent data is from the week of April 13, 2020.
FranchiseVentures is the leading demand generation platform for potential franchisees to 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 aggregation of prospective franchise buyers in the U.S.
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Published on Friday, April 24th, 2020.