Who Buys Franchises? Digital Prospects Show Focused Intent
With so many different franchise options available to a local investor, it’s easy to assume that a typical franchise prospect is talking to lots of different franchisors at the same time. But that’s a wrong assumption. The largest analysis to date of prospective franchise buyers shows the majority are focused on talking to only one or two at a time.
The Franchise Ventures demand-generation platform analyzed 12 months of franchise leads for demographic patterns and found the following financial insights:
- 38 percent of franchise prospects contacted only one franchise through the web sites or apps to request more information.
- 57 percent requested more information from only one or two.
- That means 43 percent did request info from 3 or more
Maybe it is a result of researching options on the Internet ahead of time. Or maybe business buyers are are busy people who don’t want to have the same conversation over and over again. Whatever the reason, it’s clear that most online prospects have done some homework and are looking for a serious conversation about the franchises they are researching.
Data for this analysis is based on franchise inquiries provided to over 1,524 franchisors in the United States and Canada for 12 months ending in August 2018. Data was drawn from the Franchise Ventures network of lead-generation businesses, including Franchise.com, FranchiseGator.com, FranchiseOpportunities.com, FranchiseForSale.com, FranchiseSolutions.com, BusinessBroker.net and the corresponding iOS and Android mobile apps for these sites.
Published on Wednesday, March 20th, 2019.