2017 AFDR Highlights: Recruitment Budgets

This is the first in a series of highlights from the 2017 Annual Franchise Development Report (AFDR). The 2017 AFDR, unveiled in late September at the Franchise Leadership & Development Conference, is based on responses from 167 franchisors representing 60,989 units (51,789 franchised and 9,200 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 2017 AFDR. This week: Recruitment budgets.

Average budget plans for 2017 for franchise sales and recruitment (advertising and media expenses, not including brokers and employee compensation) among respondents was $181,510, with a median of $125,000. This is an increase from last year, when the corresponding numbers were $162,821 and $120,000. This could indicate more intense competition not only for quality candidates, but also higher internal costs stemming from salaries and commissions for the best salespeople.

Next week: Where the money goes, by category of spend. *Ordering Information The complete 2017 AFDR, with analysis and benchmarks, is available for $345.