Franchise Sales IndexHighlights of Key Findings

Thursday, May 18th, 2017

Presented by Keith Gerson, CFE

FranConnect, Inc

Why Is there a Need for the FranConnect/IFA Franchise Sales Index?-

-Franchisors are struggling in achieving their sales objectives

(survey results of 1,000+ franchisors indicates 46% fail to

achieve quotas)

-Close more franchise sales

-Establish appropriate sales processes and systems

-Improve Marketing ROI

-Increase closing rates for leads already in the database

-Establish brand credibility and rapport, and create a cadence

for advancing candidates through goals in the sales process

-You can’t change what you don’t acknowledge

-Establish accountability

Franconnect IFA Franchise Sales Index Report 2017 edition

• The Franchise Sales Index is compiled from the sales performance data – lead generation sources, conversion rates, sales cycle stage lengths, response times, etc.

• Data represents 485 franchise brands

• Segmented by comparable size, industry and maturity

• Aggregated & anonymized

• 30+ Critical Metrics

Four Major Components

Excerpt From Section OneIntegrated Sales Lead Generation

Percentage of Leads by Franchise Size

Excerpt From Section OneIntegrated Sales Lead Generation

Monthly Leads by Segment YOY

Excerpt From Section OneIntegrated Sales Lead Generation

Top 5 Lead Generators by Source

FranchiseGator49%

BizBuySell17%

FranchiseDirect14%

ExecutiveFranchises

13%

BizQuest6%

Excerpt From Section OneIntegrated Sales Lead Generation

Leads by Portal

Excerpt From Section OneIntegrated Sales Lead Generation

Deals by Source

Excerpt From Section OneIntegrated Sales Lead Generation

Lead to Deal Ratio by Source

Excerpt From Section OneIntegrated Sales Lead Generation

Lead to Deal Conversion Rate by Portal

3.0% 2.9%

2.3%

0.6%0.4%

0.6%

0%

1%

1%

2%

2%

3%

3%

4%

BizQuest FranchiseDirect

ExecutiveFranchises

BizBuySell FranchiseGator

Average

Excerpt From Section OneIntegrated Sales Lead Generation

Leads to Deal Conversion Rates by Broker

4.0% 3.9% 3.9%

2.8%2.3%

2.9%

0%

1%

1%

2%

2%

3%

3%

4%

4%

5%

5%

FranChoice BusinessAllaince Inc.

FranNet TheEntrepreneur's

Choice

InternationalFranchise

Professionals

Average

Excerpt From Section TwoEffective Lead Management

Average Response Time

Excerpt From Section TwoEffective Lead Management

Closing Effectiveness by Response Time

Excerpt From Section TwoEffective Lead Management

Percent of Leads that Received No Calls

Excerpt From Section TwoEffective Lead Management

Percent of Leads that Received No Activity

Excerpt From Section TwoEffective Lead Management

Percentage of Duplicate Leads

Excerpt From Section TwoEffective Lead Management

Top 10 Verticals for Duplicate Leads

Key InsightEffective Lead Management

How Many Leads to Generate a Sale?

Assuming a 1% closing rate

100 Leads = 1 Deal

50% Drop Off for No Call

200 Leads = 1 Deal

10% of Leads are Duplicates

220 Leads = 1 Deal

Excerpt from Section ThreeManaging Progress and Nurturing Relationships

Days in sales Status

Excerpt from Section ThreeManaging Progress and Nurturing Relationships

Campaigns by Stage & Grouping

2017 FranConect/IFA Franchise Sales Index

Available through

IFA on June 1st, 2017

* All FranConnect sales proceeds to benefit the Franchise Research & Education Foundation

To pre-order the Sales Index, please contact Greg Cook – gcook@franchise.org.