2019 AFDR Highlights: Recruitment Budgets

This is the first in a series of highlights from the 2019 Annual Franchise Development Report (AFDR). The 2019 AFDR, unveiled in late October at the 20th annual Franchise Leadership & Development Conference, is based on responses from 109 franchisors representing 34,058 units (26,838 franchised and 7,220 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 2019 AFDR. Ordering information is below.

Conference attendees received a complimentary copy. Recruitment budgets: Average 2019 budget plans for franchise sales and recruitment (advertising and media expenses, not including brokers and employee compensation) among respondents was $186,818, with a median of $127,000. This is a decrease from last year, where the corresponding numbers were $202,462 and $140,000.

While the budget numbers are down, they remain well within the range of planned spending during the previous 5 years. Recruitment Budgets 2019 2018 2017 2016 2015 2014 Average $186,818 $202,462 $181,510 $162,821 $166,693 $201,817 Median $127,000 $140,000 $125,000 $120,000 $100,000 $120,000 Next time: Where the money goes, by category. Ordering Information The complete 2019 AFDR, with analysis and benchmarks, is available for $350.