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

Onigilly Japanese Kitchen

Unlocking the Potential: How Much Can You Earn as an Onigilly Franchisee?

unlocking-the-potential-how-much-can-you-earn-as-an-onigilly-franchisee

Filta Environmental Kitchen Solutions

DeWitts Ignite New Chapter for Filta Environmental Kitchen Solutions in Reno 

Grease, Grit, and Growth: DeWitts Ignite New Chapter for Filta Environmental Kitchen Solutions in Reno, Nevada

grease-grit-and-growth-dewitts-ignite-new-chapter-for-filta-environmental-kitchen-solutions-in-reno-nevada

Layne's Chicken Fingers

Layne's Chicken Fingers-50 Unit-Wendy's-Franchisee-June-2025

Why This 50 Unit Wendy’s Franchisee Is Betting on Layne’s for His Next Big Move

wendys-franchisee-expands-with-laynes-chicken-fingers-texas

CapitalSpring

CapitalSpring’s Jim Balis Talks Growth, ROI and the Future of Fast Casual on “Rock My Restaurant”

capitalsprings-jim-balis-talks-growth-roi-and-the-future-of-fast-casual-on-rock-my-restaurant

Children's Lighthouse

Children’s Lighthouse Ramps Up Growth in First Half of 2025 With Strategic Expansions, Franchise Signings, and New Headquarters

childrens-lighthouse-ramps-up-growth-in-first-half-of-2025-with-strategic-expansions-franchise-signings-and-new-headquarters

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

What June’s Jobs Report Means for the Franchise Industry

what-junes-jobs-report-means-for-the-franchise-industry

Drone Delivery Takes Flight in QSR: The Future of Franchise Operations?

drone-delivery-takes-flight-in-qsr-the-future-of-franchise-operations

Chick-fil-A Tops Customer Satisfaction Rankings for 11th Year as Challenger Brands Gain Ground

chick-fil-a-tops-customer-satisfaction-rankings-for-11th-year-as-challenger-brands-gain-ground

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

Rising Jobless Claims Could Signal Challenges — and Opportunities — for Franchising

rising-jobless-claims-affect-franchising

Hardee’s Lawsuit Highlights the Risk of Going Off-Model in Franchising

hardees-franchise-lawsuit-paradigm-investment-group

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores - Agg - 1851 Franchise

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores

hooters-franchise-model-company-owned-closures

The Ultimate Guide to Selling Franchises: How To Create a Strong Incentive

how-to-build-strong-incentives-to-attract-prospective-franchisees

How Vishal Juneja Turned a Family Tradition Into a Paris Baguette Franchise

How Vishal Juneja Turned a Family Tradition Into a Paris Baguette Franchise Built on Heart and Community

paris-baguette-franchise-rockaway-new-jersey-vishal-junjea

petbar Franchise Costs, Fees, Profit and Data for 2025

petbar-franchise-deep-dive

Design with outline of three houses and people working on laptops within them

Top 10 Low-Cost Home-Based or Mobile Franchises for 2025

low-cost-home-based-mobile-franchises

Franchisee spotlight graphic with photo of Juan & Whitney Fernandez & family, BIGGBY COFFEE logo

From Chiropractic to Coffee: These BIGGBY® COFFEE Franchisees Are Brewing Something New in Troy, Ohio 

biggby-coffee-franchise-coming-to-troy-ohio

Perfecting the Franchise Sales Budget

MORE STORIES LIKE THIS