Franchise Update Magazine Issue IV, 2014 | Page 41

• Recruitment budgets. More than half (53 percent)
said their 2015 recruitment budget is higher than in 2014.
Fewer than 1 in 10 (7 percent) said their budget for 2015
will be lower. And 4 in 10 are budgeting the same amount
as they did this year.
• Where the money goes. Plans for allocation of their
2015 recruitment budgets remained stable. In fact, its distribution has been fairly consistent for the past 5 years, despite
all the excitement about social media. Internet spending by
respondents peaked in 2010 at 50 percent, gradually declining
in the ensuing years to 44 percent predicted for 2015 (it was
45 percent in 2014). Spending for trade shows at 16 percent
(same as 2014), print at 13 percent (15 percent in 2014), and
public relations at 12 percent (same as 2014) mirrors allocations by respondents in previous years.
• Top sales producers. The Internet—holding steady at
42 percent since 2012—continues to dominate as the numberone source for franchise sales. Referrals remained second at 30
percent, basically identical with the 3 previous years. Brokers,
at 16 percent, also held steady over the 5-year period. One encouraging sign: “Other,” at 6 percent, is about one-third of what
it was in 2010 and 2011, hopefully indicating that franchisors
are doing a better job of tracking where their sales come from.

• Top Internet sales producers. As noted, the Internet
accounted for about 4 of every 10 sales among respondents.
Breaking down Internet sales by category, the biggest change
from last year is the 50 percent decline in sales attributed to

SEO (24 percent in 2014, compared with 49 percent in 2014).
Sales from online ad portals, which fell significantly in 2013
(to 23 percent from 43 percent in 2012), bounced back to 35
percent in 2014. Possible reasons include better performance
by portal operators, better communication from and collaboration with franchise sales departments, and changes in how
prospects search for brands. Pay-per click, at 15 percent for
2014, more than doubled from 6 percent in 2013, reaching its
highest percentage in 5 years.

Grow Market Lead

from the preceding 2 years, the number of sales staff who
qualified experience on that first call fell by more than half
from 2012. As for presenting the next step, half (49 percent)
did, up from last year, but down from 2012.

• How multi-unit franchisees find new brands. It’s no
secret that for most franchisors, experienced multi-unit operators are the gold standard. Their track record of success, along
with their solid organization and infrastructure, makes them
a safe bet—and a good one. Where these savvy operators go
to look for new brands to expand their portfolio should be of
utmost importance to expansion-minded franchisors. Nearly
two-thirds (62 percent) said they attend t Ʌ