1851

Growing a franchise requires careful planning, and one aspect of the development process is the franchisor determining how much they will spend to make a sale. Unfortunately, there isn’t exactly one right answer to “How much does it cost to sell a franchise?” Different franchisors leverage varying approaches, and the cost to sell will hinge mainly on existing resources and long-term goals.“We look at marketing, trade shows and hosting our potential candidates for our budgeting purposes,” explained&nbsp;<a href="https://www.linkedin.com/in/todd-haavind-40915564/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-goal-setting-part-1-how-much-does-it-cost-to-sell-a-franchise-2719902" target="_blank" rel="nofollow">Todd Haavind</a>, VP of franchise development at&nbsp;<a href="https://www.campbowwow.com/franchising?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-goal-setting-part-1-how-much-does-it-cost-to-sell-a-franchise-2719902" target="_blank" rel="nofollow">Camp Bow Wow</a>. “We base our marketing budget on the number of leads we want to acquire. In Camp Bow Wow, we look for about 3,000-plus leads per year and adjust the spending to the most productive lead sources. This may change during a year if we see a better or lower performance from any single type of lead source.”Haavind shared that looking for prospects who have shown interest in multi-unit ownership can be more efficient in the long-term rather than budgeting a “per-unit” marketing spend.&nbsp;As a franchisor builds out its strategy and budget, there are a few things to consider and practices to implement.<h4>Where Have Previous Sales Come From?</h4>Stay conscious of approaches that have worked in the past. If there is a certain expo that has been very fruitful in previous years or a current franchise owner that has expressed interest in obtaining additional units, there is no shame in taking a proven route!Building these sources into a budget and strategy ensures that the more trusty techniques are accounted for before branching out to additional approaches.<h4>Budget for Diversified Lead Sources</h4>While tried and true sources are great, they should not be a franchisor's only strategy. Working to identify and budget for diversified lead sources can provide a bit of cushion and create space for new, unexpected sources to shine.<h4>Be Open To Change</h4>“Review lead performance often to determine when a change is needed,” Haavind said.&nbsp;While there is something to be said for creating a plan and sticking with it, periodic performance reviews are a great way to stay in the loop and be conscious of when a change may be necessary. Try to find a healthy balance between adjusting a strategy too frequently and being so stubborn that there is no space to pivot.<h4>Be Transparent About What Type of Owner You’re Looking For</h4>Save time and money by simply being straightforward and realistic. Building a strategy and budget without a specific target or goal in mind is a poor practice to adopt.&nbsp;Rather, spending just a bit of time identifying a target franchise owner — including financial requirements, cultural fit and long-term goals — can lead to a much more informed development strategy. Instead of drawing in any and everyone, franchisors can dedicate their funds and efforts to prospects most likely to be a great fit for the franchise network.<h4>Consider Early Adoption of New Industry Trends</h4>“Try new ideas or industry trends to test if they may work for your concept,” Haavind added.Leaving a bit of space in the plan to embrace the most recent industry trends can help a franchisor determine whether a certain approach fits its concept. Test driving a trend while it's young can allow the franchisor to be one of the first adopters if it is a good fit, demonstrating innovation and leadership to prospects.

Franchise Goal Setting Part 1: How Much Does It Cost to Sell a Franchise

1851 Franchise

There is no one-size-fits-all answer, but there are steps to take to make the most of a franchise development strategy and budget.

franchise-goal-setting-part-1-how-much-does-it-cost-to-sell-a-franchise

Children's Lighthouse

Children’s Lighthouse Wraps Up Q1 With Two New Openings and Continued Industry Recognition

childrens-lighthouse-wraps-up-q1-with-two-new-openings-and-continued-industry-recognition

Happy Joe’s Franchising

Why Texas Is the Perfect State To Open a Happy Joe’s Franchise

why-texas-is-the-perfect-state-to-open-a-happy-joes-franchise

Seniors Helping Seniors®

Photo of two people, with white hair, sitting on couch, smiling at each other

Seniors Helping Seniors® In-Home Care Services Expands in Manassas and Fredericksburg, Virginia

seniors-helping-seniors-in-home-care-services-expands-in-manassas-and-fredericksburg-virginia

BooXkeeping

Tech-Driven Bookkeeping: How BooXkeeping Franchisees Are Embracing the Future

tech-driven-bookkeeping-how-booxkeeping-franchisees-are-embracing-the-future

Fitness Premier

Fitness Premier's State-of-the-Art Facilities and Multi-Discipline Approach Fuels Franchise Owner Success

fitness-premiers-state-of-the-art-facilities-and-multi-discipline-approach-fuels-franchise-owner-success

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Layoffs Surge to Pandemic-Era Highs, Opening Doors for Franchise Growth

layoffs-surge-to-pandemic-era-highs-opening-doors-for-franchise-growth

FAT Brands Becomes First Restaurant Franchise To Accept Bitcoin for Royalty Payments

fat-brands-becomes-first-restaurant-franchise-to-accept-bitcoin-for-royalty-payments

Yum! Brands CEO David Gibbs To Retire in 2026 After 36 Years With the Company

yum-brands-ceo-david-gibbs-to-retire-in-2026-after-36-years-with-the-company

Hooters Bankruptcy - Chapter 11 - April 2025 - 1851 Franchise

Hooters Files for Bankruptcy, Sells Restaurants to Franchisee Group

hooters-bankruptcy-chapter-11-april-2025

Fly Dance Fitness Expands With First Franchise Location in Georgia

fly-dance-fitness-franchise-expansion

Paris Baguette Ranks Among Top Franchises on Entrepreneur’s Franchise 500® for 2025 - 1851 Franchise

Paris Baguette Ranks Among Top Franchises on Entrepreneur’s Franchise 500® for 2025

paris-baguette-ranks-among-top-franchises-on-entrepreneurs-franchise-500-for-2025

1851 Agg - McDonald's Sales Decline Expansion Continues - 1851 Franchise

McDonald’s Franchisees Feel the Pressure as Sales Decline and Expansion Continues

mcdonalds-franchisees-feel-the-pressure-as-sales-decline-and-expansion-continues

Design with hundred dollar bill and orange "recession" banner across the middle

ABC News: Recession Risks Are Rising, Economists Say. Here’s What to Know.

recession-risks-impact-economy-franchise-world

Florida Franchisee Reflects on Success and Growth with Sylvan Learning

florida-franchisee-reflects-on-success-and-growth-with-sylvan-learning

Franchise Deep Dive: Studio Pilates Franchise Costs, Fees, Profit and Data

franchise-deep-dive-studio-pilates-franchise-costs-fees-profit-and-data

Military Veteran and Craft Beer Enthusiast to Bring Voodoo Brewing Co. to Toledo, Ohio

military-veteran-and-craft-beer-enthusiast-to-bring-voodoo-brewing-co-to-toledo-ohio

Franchise Goal Setting Part 1: How Much Does It Cost to Sell a Franchise

MORE STORIES LIKE THIS