1851

Putting together a budget requires you to balance what you can afford against what you need or want to buy. The first step in creating a budget is to set a concrete, measurable goal for what you want to achieve in the next year. For example, your goal could be “to sell 10 more units.” Come December 31st, it is easy to evaluate whether you’ve hit that goal because it is specific and easily measurable.&nbsp; On the other hand, a goal like “to sell a lot of units” is subjective and thus harder to evaluate. If you struggle to identify a goal, you can start by setting a long-term goal and time-frame (such as having 100 units in 3 years) and then work backwards to calculate what you will need to do in the next year to be in position to hit your long-term goal.&nbsp;&nbsp;Once you’ve determined how many franchises you want to sell, you need to assign an assumed marketing cost per unit. You can do this in two principal ways:<ul><li>Divide your marketing budget from last year by how many units you sold. This method is likely to be most accurate unless something significant has changed in your business. Unfortunately, this option may be off-limits if you don’t have historical data to use (say, your brand is a new concept).</li><li>Use an average marketing cost per unit specific to your industry. <a href="https://go.franconnect.com/salesindex-01?submissionGuid=fa12c496-d6ad-4bac-8650-87d3bbbf3223&utm_source=1851franchise.com&utm_medium=article&utm_campaign=perfecting-the-franchise-sales-budget-2713841" target="_blank" rel="nofollow">FranConnect</a> offers a wealth of information on this in their Franchise Sales Index Report.</li></ul>Be realistic in what a reasonable marketing cost per unit (MCU) is — you won’t do yourself any favors by picking an artificially low number and then missing your goal as a result. If you’re expecting your MCU to plummet from previous years, you need to have concrete reasoning for that assumption or your whole budget will be thrown off.&nbsp;&nbsp;Once you’ve landed on a target number of units and your MCU, multiply the two to calculate your annual franchise development marketing budget. If the result is larger than you bargained for, you can do one of two things: (1) reallocate resources in your larger budget to make your FD marketing budget work; or (2) lower your goal. Reflect before adjusting the MCU since this tends to be wishful thinking rather than an executable plan for success.&nbsp;After you’ve finalized your budget number, the next step is to determine how you’ll get the most bang for your buck. What has worked well in previous years? What was a flop? Look at what you spent previous years’ budgets on and survey existing franchisees to see what moved the needle on their purchases. If you’re really at a loss with where to start, consider having a franchise assessment performed in order to give you the blueprint you need to maximize your budget. Once you have an idea of what you need, investigate whether an agency, freelancer or in-house employee will best fit your needs and collect bids so you have transparency into how far your money will go.

Perfecting the Franchise Sales Budget

1851 Franchise

 A rundown of the planning every franchisor must do to meet their franchise sales goals.

perfecting-the-franchise-sales-budget

HomeTeam Inspection Service

Photo of HomeTeam inspector in red polo and khaki pants, walking by branded vehicle

Real Estate Today: Behind the Drywall: The Truth About Home Inspections

purpose-of-home-inspection

Dog Training Elite

Dog Training Elite Franchise - DTE - National Service Dog Month - 1851 Franchise

Celebrating Service Dogs: Why Proper Training Changes Lives — And How Dog Training Elite Is Leading the Way

dog-training-elite-national-service-dog-month

Senior Care Authority

How This Senior Care Authority Franchisee Turned Love for His Grandparents Into a Lifelong Calling

how-this-senior-care-authority-franchisee-turned-love-for-his-grandparents-into-a-lifelong-calling

Hometown News: Like Father, Like Son — Family-Run Inspection Business Blends Generations of Expertise and a Keen Eye for Detail

father-son-home-inspection-franchise-florida

KLA Schools

KLA Schools of Beachwalk Hosts Admissions Kick-Off Celebration

kla-schools-of-beachwalk-hosts-admissions-kick-off-celebration

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 Development Website Builder

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

Potbelly to be Acquired by RaceTrac in $566 Million Deal 

racetrac-acquires-potbelly-in-566-million-deal

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities - 1851 Franchise Agg

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities 

health-care-hiring-slowdown-in-home-care-franchise-opportunities

Caribou Coffee Names Scott Kennedy CEO, Eyes Continued Growth

caribou-coffee-names-scott-kennedy-ceo-eyes-continued-growth

McDonald’s Launches New Extra Value Meals as Consumer Demand for Value Continues to Climb

mcdonalds-launches-extra-value-meals

Power Eats: Smoothie King Rolls Out Food Nationwide To Fuel Franchise Growth

smoothie-king-food-menu-power-eats

Technomic Releases Annual Ranking of the Top 15 Fast-Food Chains in the U.S.

technomic-releases-annual-ranking-of-the-top-15-fast-food-chains-in-the-us

AI Is Reshaping Franchising: $100 Billion Valuations and Hyper-Localized Advertising

ai-is-reshaping-franchising-100-billion-valuations-and-hyper-localized-advertising

Hely and Hiral Patel Bring Their Longtime Dream to Life With The Brass Tap

brass-tap-franchise-pasadena-maryland-hely-hiral-patel

1851 Keyword - The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

part-time-franchises-picking-the-right-model

DevHub - Meet the Supplier - 1851 Franchise

DevHub: Scalable Digital Marketing for Franchises and Multi-Location Brands

devhub-meet-the-supplier

Franchisee spotlight graphic with photo of Ricki Oberoi and Layne's Chicken Fingers logo

Multi-Unit Wendy’s Operator Signs 12-Unit Deal With Layne’s Chicken Fingers

ricki-oberoi-laynes-chicken-fingers-growth

Design with school-aged child standing on pencil with text "Education Franchises" and "<$500K"

Top Education Franchises Under $500K To Explore in 2025

top-education-franchises-under-500k

1851 Franchise Deep Dive graphic with Sparkle Squad logo

Sparkle Squad Franchise Costs, Fees, Profit and Data for 2025

franchise-deep-dive-sparkle-squad-franchise-costs-fees-profit-and-data

Perfecting the Franchise Sales Budget

MORE STORIES LIKE THIS