This is the first in a series of highlights from the 2018 Annual Franchise Development Report (AFDR). The 2018 AFDR, unveiled in mid-October at the annual Franchise Leadership & Development Conference, is based on responses from 142 franchisors representing 85,734 units (74,000 franchised and 11,734 company-owned).
Participants in the survey consisted of franchisors that completed an extensive online questionnaire. Responses were aggregated and analyzed to produce a detailed look into the recruitment and development practices, budgets, and strategies of a wide cross-section of franchisors. The data and accompanying commentary and analysis provide the basis of the 2018 AFDR. Ordering information is below. Conference attendees received a complimentary copy.
Recruitment budgets. Average 2018 media budget plans for franchise sales and recruitment (advertising and media expenses, not including brokers and employee compensation) among respondents was $202,462, with a median of $140,000. This is an increase from last year, where the corresponding numbers were $181,510 and $125,000 — although the average is comparable to 2014. This could reflect today’s heightened competitive environment for franchise brands vying to attract and sign the best candidates, and be a factor in this year’s increased spending on sales and recruitment. While the numbers are up, the average is about the same as 4 years ago, though the median cost is the highest in the past 5 years.
The complete 2018 AFDR, with analysis and benchmarks, is available for $350. For ordering information, call Sharon Wilkinson at 800-289-4232 x202, email sales@franchiseupdatemedia, or visit http://afdr.franchiseupdate.com.
A targeted, quarterly magazine that takes CEO's, VPs and Sales Executives to the cutting edge of franchise development.