It’s a well- known fact, that when franchisors strategize their system growth, the major focus is placed on the amount and quality of their franchisee leads. However, if there isn’t a program in place to maximize the productivity of candidate leads the growth of the franchise network will be severely hampered. All the money and human resources invested in lead gen will be for naught if a franchisor doesn’t have the right program in place. Industry surveys and data continue to indicate that it requires from 1 to 1.5% of all total leads to produce one new franchisee sale. In other words, it takes 100 leads to complete one new franchise transaction. Obviously, it’s critical to maximize ROI on the leads franchisors pay for, which includes costs for PR, SEO programs, PPC and Ad Portals. It’s a waste of money to pay for leads and not have a complete franchise development program in place.
Franchise leads represent a significant cost to franchisors. To maximize the full potential of this investment it’s important that franchisors have a franchise development program and adhere to it.
When it comes to franchising, Murphy’s Law comes into play more often than desired. In many cases, a new franchise takes off slower than anticipated.
Before a prospective franchisee invests they must review the information disclosed in the Franchise Disclosure Documents.
In the franchise industry, franchisors can view comparisons and relationships between consumer satisfaction for the products or services a franchise offers.
In a recent study by the research team at Franchise Grade has indicated that 71% of franchise systems have 100 or fewer franchise units.
A good consumer experience is not a reason to invest in a franchise. It skews the decision-making process of a prospective franchisee from start to finish.