Insights from the Franchise Recruitment & Support Benchmark Report
One of the biggest challenges facing most franchisors, is franchisee recruitment. Emerging franchisors typically have less well-known brands and do not have the full success story yet – franchisees who have started, thrived and ultimately sold their franchise businesses.
Even the most established franchisors have challenges – they are often looking to only recruit franchisees in certain regions where they have coverage gaps, so need a more targeted approached towards recruitment.
WorkBuzz and the British Franchise Association (BFA) teamed up to combine data from 90 franchisors to help benchmark franchisee recruitment, fee structures and support, learn these from one another and make smarter decisions. Participating franchises ranged in terms of investment level:
Less than £15k investment (16 franchisors)
£15k – £50k (26 franchisors)
£50k – £100k (21 franchisors)
£100k+ (27 franchisors)
Key recruitment headlines Overall franchisors most effective lead generation channels were their own website, followed by referrals and dedicated franchise recruitment websites.
On average franchisors generated 318 franchisee recruitment leads in 2021.
The most commonly used lead generation channels were franchisors’ own websites, social media and referrals.
Whilst it’s easier to measure leads generated online, almost half of franchisors still relied on franchise exhibitions and events, which often help to build brand awareness and trust with prospective franchisees.
Only 1 in 100 enquiries become franchisees.
Whilst the typical franchisor generated several hundred recruitment leads in 2021, 9 in 10 of these were ruled out during the initial stage and only 1.3% eventually went on to invest in their franchise opportunity.
Improve low conversion rates
This raises a question, how can franchisors improve this low conversion rate to accelerate their growth?
During a recent webinar, WorkBuzz and the BFA discussed this with industry experts. Suggestions included ensuring the recruitment process is franchisee centric, the right information is provided at the right stage and industry best practice is being followed.
Given it’s a huge personal decision to invest in a franchise and establish their own business, some potential franchisees may not be ready now to invest, but may be in the future.
Top franchisors nurture these opportunties over time and build trust, so when a candidate is ready, they are front of mind.
To receive a copy of the full report to help benchmark franchisee recruitment, fee structures and support, please email: email@example.com.