One of the questions that a prospective, new, or even existing franchisor will ask is: where will our franchise sales come from? There are a handful of sources, but at the top of the list is the Internet. According to the 2015 Annual Franchise Development Report (AFDR), the Internet accounts for 42 percent of sales. This figure has held consistent for the past three years.
Referrals are second on list with 30 percent of sales coming from this category. Referrals are a low cost by offering incentives to your franchisees and others within your organization to refer prospects. Referrals have held consistent over the past four years not varying for than one or two percent.
Franchise brokers make up the next highest group when talking about franchise sales. These sales professionals make up approximately 16 percent of activity. Brokers are third-party organizations that bring in qualified prospects ready to buy. This is effective, but comes at the expense of some high commissions.
The final two categories are print ads at 3 percent and other at 6 percent, meaning there is not a lot of thorough tracking being done by some franchisors. This number has fallen considerably from 20 percent in 2011.