Franchise Update Magazine Issue IV, 2012 | Page 34

Grow Market Lead

By Eddy Goldberg

2013:
Performance Required
It’s not what you say,
it’s what you do—and measure!

Y

ou can’t improve what you don’t measure, the old a franchise system. The following is a high-level summary of
saying goes… which is one reason so many in fran- some of the in-depth findings from the 2013 AFDR. To order
chising eagerly anticipate the release of the Annual a copy of the complete report, see page 36.
Franchise Development Report (AFDR) at Fran• Recruitment budgets. On the whole, 2013 median
chise Update Media Group’s annual Leadership & Develop- recruitment budgets are holding steady with those in 2012,
ment Conference. Things change from one year to the next, at $125,000. While median recruitment budgets for the past
in life and in franchising, and the AFDR provides franchise two years are above the $80,000 recorded in 2010 and 2011,
sales and development executives an annual benchmark of they are still below the $138,000 in 2008 and 2009. Average
best practices, along with a slew of other development-related recruitment budgets continued to rise, following a drop in
data and analysis.
2010 and 2011.
This year’s survey gathered data on sales and recruitment
practices from 106only franchise sales and lead generation
The franchisors representing 43,497 units
(34,566 franchised and 8,931 company-owned). Participants
benchmark report available in
consisted of franchisors who registered for the annual confer- franchising.
ence in Atlanta and filled out a lengthy survey online in advance. The responses—analyzed to provide an in-depth view
into the recruitment and development practices, budgets, only $299!
Order by 11/15/2012 for and
Order by January 1, 2013 the
strategies of a wide cross-section of franchisors—providefor only $299!
basis of the AFDR.
“Today performance is required. You’re out of the race unless you’re growing forward,” said Steve Olson, president of
Franchise Update Media Group, who presented the results
RE UP IN TODAY’S ECONOMY? about 350 franchise sales and developto a general session of
• Where the money goes. The distribution of development executives at the conference in early
ment spending has remained fairly steady
anchise Development Report is packed with
October, where the theme was “Winning
over the past 5 years or more. Internet
g data that can help your franchise system grow
the Race” (see page 38).
spending is projected to rise in 2013 to 46
Growth plans for 2013 among the 106
percent, returning to its historical levels
after falling to 40 percent in 2012. One
respondents target a total of 4,675 addirom more than 110 organizations actively
tional franchised units from 3,095 franlikely reason is the increase in quality
The thoroughly researched report spotlights the
chisees. That compares with 8,262 new
prospects from Internet sources, followuccess drivers that are sure to boost the octane
franchise units and 4,441 new franchisees
ing the consolidation of portals, as well as
last year (from 110 franchisors), and with
improved SEO on brand websites, better
3,850 new units trends, making
from 3,100 franchisees
designed franchising websites, and the
atching lead-generation and sales
in 2010 (from 126 franchisors).
continuing increase in buyers using the
And you can stay ahead of the curve with this report.
To hit those goals, says Olson, franInternet for researching brands. “In today’s environment, it’s all about generatchisors will have to provide a compeland lead generation data available in franchising!
ing applications from quality prospects,”
ling business opportunity, that features
ources
says Olson. “That’s the benchmark, not
strong unit economics, transparency in
ent costs
Item 19 (including costs, as well as sales
inquiries and leads. Especially with the
y categories and investment levels
numbers), and a supportive culture that
funding concerns in franchising today,
ding budgets and media plans
today’s quality buyers are looking for in
why waste your time?”
ales and marketing trends, costs, and budgets
totaling over 50,000 franchise units and 42 industry categories

SAVE $100!
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