2015 AFDR Highlights: How Franchisors Are Using Brokers

2015 AFDR Highlights: How Franchisors Are Using Brokers


This newsletter continues to present highlights from the 2015 Annual Franchise Development Report (AFDR). The 2015 AFDR is based on responses from 139 franchisors representing 36,313 units (32,693 franchised and 3,620 company-owned). This week: how franchisors are using brokers.

  • Usage. About half (49 percent) of respondents in the 2015 AFDR reported that they use franchise broker networks (78 percent used broker firms and 74 percent used independent/local brokers or consultants). That compares with 48 percent in 2013, and 44 percent in 2012.
  • Cost. The average commission fee per deal in 2014 was $15,146 from broker firms, and $11,750 from independent brokers/consultants. However, in the experience of the panelists – top franchise sales pros – who discussed the findings at last fall’s Franchise Leadership & Development Conference in Atlanta, those numbers seemed unrealistically low. “I don’t know a single franchisor paying less than $25,000,” said Tom Wood, president and CEO at Floor Coverings International, unless they were in packages of five. “Just signing up with a broker isn’t enough,” added Art Coley, former president and CEO of AlphaGraphics. “Take them out to dinner. Make them understand what your brand is about.”
  • Investment level, sector matter. Brokers are not for everyone. They will perform better or worse depending on a brand’s investment level and the sector they operate in. On average, respondents expected to close 11.3 deals through broker firms and 8.3 deals through independent brokers/consultants in 2015.

How To Order

The complete 2015 AFDR, with analysis and benchmarks, is available for $199. New for 2015 is a 5-video package that includes videos of presentations from this year’s Leadership & Development Conference. The package, at $299, also includes the 2014 AFDR for comparing year-to-year survey results. For ordering information, call Sharon Wilkinson at 800-289-4232 x202, email sales@franchiseupdatemedia.com, or visit franchiseupdate.vizigy.com.

Published: April 20th, 2015

Share this Feature

Reader Reactions:

comments powered by Disqus
Golden Corral
ADVERTISE
SPONSORED CONTENT

Franchisor Topics »

Premium Services

Multi-Unit Franchising Conference Business Opportunity

Multi-Unit Franchising Conference
Make deals with the most powerful players in Multi-Unit Franchising. Our...

Best Franchisee of the World Business Opportunity

Best Franchisee of the World
Best Franchisee of the World will focus on the Franchisees, entrepreneurs...

Qiigo Inc. Business Opportunity

Qiigo Inc.
Qiigo unifies digital marketing for national brands and their locations,...

Direct Capital Franchise Group Business Opportunity

Direct Capital Franchise Group
Direct Capital, an established national direct franchise lender has...

FranchiseGrade.com Business Opportunity

FranchiseGrade.com
FranchiseGrade.com is the leader in competitive market research and...

Michael H. Seid & Associates Business Opportunity

Michael H. Seid & Associates
MSA provides domestic and international franchise advisory services to...

919 Marketing Business Opportunity

919 Marketing
919 Marketing Co. is a national content marketing, PR and social media...

Xivic Business Opportunity

Xivic
XIVIC IS YOUR FRANCHISE DIGITAL PARTNER. Empower your customers. Build...


Franchise Update Magazine

A targeted, quarterly magazine that takes CEO's, VPs and Sales Executives to the cutting edge of franchise development.

Subscribe to Franchise Update Sales Report

A Franchise Update Media Production
Franchise Update Media | P.O. Box 20547 // San Jose, CA 95160 // PH. (408) 402-5681
Copyright © 2001 - 2017. All Rights Reserved.

In Loving Memory Of Timothy Gardner (1987-2014)