2015 AFDR Highlights: Top Franchise Sales Producers
In the following months, FUSR will present highlights from the 2015 Annual Franchise Development Report (AFDR). The report is based on responses from 139 franchisors representing 36,313 units (32,693 franchised and 3,620 company-owned). This week: Top Sales Producers and Top Internet Sales Producers.
- Top sales producers. The Internet - holding steady at 42 percent since 2012 - continues to dominate as the number-one source for franchise sales. Referrals remained second at 30 percent, basically identical with the three 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. 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 2013). 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 in 2014, more than doubled from 6 percent in 2013, reaching its highest percentage in 5 years.
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