1851

1851 Franchise CEO&nbsp;<a href="https://www.linkedin.com/in/powills?utm_source=1851franchise.com&utm_medium=article&utm_campaign=1851-growth-club-how-do-you-budget-for-franchise-growth-2723815" target="_blank" rel="nofollow">Nick Powills</a> provides&nbsp;<a href="https://www.youtube.com/watch?v=ef4aftFHiVk&utm_source=1851franchise.com&utm_medium=article&utm_campaign=1851-growth-club-how-do-you-budget-for-franchise-growth-2723815" target="_blank" rel="nofollow">The 1851 Growth Club</a> as a resource to members of the franchise broker community, providing them with the tools they need to support their clients. One particularly tricky obstacle all members of this community need to face is deciphering a budget for franchise growth. Powills understands this particular hurdle well and has helpful advice to help you tackle this challenge head-on.&nbsp; &nbsp;Budgeting for franchise growth is a complex undertaking that is dependent on various factors; namely, the brand and your given industry. While it may seem tempting to simply select a desired budget based on what you are comfortable spending, you will be faced with fierce competition. Many sources will be vying for a potential business buyer’s attention. Powills explained that you need to consider “all the broker networks that are trying to get in front of the candidate, and then you need to consider all of the advertising that was created, costing perhaps millions of dollars, to get that candidate into the brand you're competing against.” This will help you understand just how critical your budget is.Powills recommends two ways of looking at your budget.&nbsp;The first option is to consider “your franchise fee as your cost of acquisition,” explained Powills.&nbsp;“If you have a $30 thousand franchise fee, you need to be willing to spend $30 thousand to strike a deal with a franchisee.”The second option is to “figure out what your deal value is,” advised Powills. “The way to do that is to consider what you expect to pull in from royalty over one, two or three years as a benchmark, and ask yourself if you would be willing to spend all that for lead generation.”While Powills stresses the importance of understanding and pinning down your budget, he concedes that “if you haven't defined the&nbsp;<a href="https://www.youtube.com/watch?v=uJLg1GMPRgc&amp%3Blist=PLYoYh1wSeGsTqBrKtJH101pFoV4qlvpGc&amp%3Bindex=15&utm_source=1851franchise.com&utm_medium=article&utm_campaign=1851-growth-club-how-do-you-budget-for-franchise-growth-2723815" target="_blank" rel="nofollow">‘why you, why now’</a> of your business, the budget ends up being irrelevant, which is why the budget has to come last in this process.”&nbsp;Have a clear understanding of your brand’s message before you can deliver it. And as a general rule, Powills advised brands to spend $25K per deal. While this seems like a massive investment, the returns can be tremendous.&nbsp;If you are confident that you will reach a certain dollar amount, you should use that number to guide your growth budget. Consider this scenario: You are a franchisor who has decided to spend $10K per deal. You anticipate earning around $50K in first-year royalties from a new franchisee. Over five years, this amounts to $250K. If someone offered you $250K in cash right now, how much would you be willing to part with in exchange? Surely, more than, say, $10K. If you know there is a pathway to $250K, you need to adjust your spending accordingly to ensure you get there and make the most of the opportunity.&nbsp;As a way of budgeting more securely, Powills recommended that you build rolling budgets into your plan, so as you encounter more success, you build up your budget. Franchising can get expensive, so you need to continuously consider and reconsider your spending.&nbsp;“When you are thinking of your budget for next year, I would recommend three things: one, set some cash aside; two, create a rolling budget mindset, so that every time you close a deal you put more money back in the budget; and three, do not turn off the faucet,” he said. “Keep your momentum going.”&nbsp;Think of franchise growth as a locomotive; if it halts or hesitates, it takes a great deal of time and effort to regain momentum.&nbsp;To find out more, click&nbsp;<a href="https://www.youtube.com/watch?v=TJyBCbSPDRg&amp%3Blist=PLYoYh1wSeGsTqBrKtJH101pFoV4qlvpGc&amp%3Bindex=15&utm_source=1851franchise.com&utm_medium=article&utm_campaign=1851-growth-club-how-do-you-budget-for-franchise-growth-2723815" target="_blank" rel="nofollow">here.&nbsp;</a>

1851 Growth Club: How Do You Budget for Franchise Growth?

1851 Franchise

1851 Growth Club CEO Nick Powills provides advice on how much money to invest to ensure your returns and growth are tremendous. 

This brand page has been paid for by 1851. Content within this page that is paid will showcase a Sponsored icon. This means the brand has engaged 1851 FRANCHISE to write the content. Content without the Sponsored Icon is aggregated media placements the brand earned. Questions can be sent to editorial@1851franchise.com

1851-growth-club-how-do-you-budget-for-franchise-growth

Sola Salons

Sola Salons Targets Chicago for Strategic Franchise Growth

sola-salons-targets-chicago-for-strategic-franchise-growth

Melting Pot

Photo of Melting Pot white chocolate fondue

How Melting Pot Franchisees Drive Year-Round Success Through Strategic Promotions and Local Marketing

melting-pot-franchise-year-round-success

Crust Pizza Co.

Crust Pizza Co. - Technology Piece - CTO Nick Fontenot - May 2025 - 1851 Franchise

Crust Pizza Co. Builds the Future of Franchising With Tech-First Strategy

crust-pizza-co-technology-nick-fontenot-cto

Paris Baguette

Paris Baguette’s Recipe for Expansion: Leadership, Community and A Vision for 1,000 Cafés by 2030

paris-baguettes-recipe-for-expansion-leadership-community-and-a-vision-for-1000-cafes-by-2030

Seniors Helping Seniors®

Franchisee Spotlight with Billy and Anita Clark and Seniors Helping Seniors

Heart and Purpose: Couple Launch Seniors Helping Seniors® Franchise in Northern Arizona

heart-and-purpose-couple-launch-seniors-helping-seniors-franchise-in-northern-arizona

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

DoorDash Expansion Could Reshape Delivery and Operations for Franchise Brands - 1851 Franchise

DoorDash Expansion Could Reshape Delivery and Operations for Franchise Brands

doordash-acquistions-deliveroo-sevenrooms

Crumbl Franchise Investment - TSG Consumer Partners -  1851 Franchise

TSG Consumer Partners Takes Minority Stake in Crumbl, Signaling Franchise Growth Potential

crumbl-franchise-investment-tsg-consumer

Yum Brands Reports Strong Q1 Results with Big Boost from Taco Bell

yum-brands-reports-strong-q1-results-with-big-boost-from-taco-bell

QSR: McDonald’s Gains Momentum With Chicken Innovation, Value Deals and Franchisee Support

mcdonalds-franchise-recovery-chicken-strategy-value-deals-2025

The Future of Franchising: Trends and Predictions for 2025 and Beyond

the-future-of-franchising-trends-and-predictions-for-2025-and-beyond

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

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

Restaurant Business: Crumbl Cools Its Expansion, Refocuses on Profitability

restaurant-business-crumbl-cools-its-expansion-refocuses-on-profitability

Franchisee spotlight image with Randy and Sandy Craft, Children's Lighthouse logo on blue background

The Crafts’ Successful Journey from New Parents to Children’s Lighthouse Franchisees

the-crafts-successful-journey-from-new-parents-to-childrens-lighthouse-franchisees

Franchisee spotlight image with photo of Robert Trujillo and UWRG logo on blue background

How Robert Trujillo Expanded His Construction Business With UWRG

how-robert-trujillo-expanded-his-construction-business-with-uwrg

District Taco Franchise Costs, Fees, Profit and Data for 2025

franchise-deep-dive-district-tacos-franchise-costs-fees-profit-and-data

The Ultimate Guide to Selling Franchises: Building Your Brand’s Growth Machine

ultimate-guide-to-selling-franchises

1851 Growth Club: How Do You Budget for Franchise Growth?

MORE STORIES LIKE THIS