Highlights from the 2023 Annual Franchise Growth Report (AFDR) had been unveiled on the Franchise Management & Growth Convention (FLDC) in October.
Contributors consisted of franchisors that accomplished an in-depth questionnaire on-line. Responses had been aggregated and analyzed to provide an in depth look into the recruitment and growth practices, budgets, spending allocations, and techniques of a large cross-section of franchisors. The information and accompanying commentary and evaluation offered the premise for the 2023 AFDR.
A complete of 101 franchisors participated, representing 21,802 franchised items and a pair of,044 company-owned items. Regardless of predictions of a recessionary 12 months forward, members plan to open a complete of 1,725 new franchised items in 2023.
Highlights from the report had been introduced in an FLDC common session by Franchise Replace Media EVP and Chief Content material Officer Diane Phibbs and Wild Birds Limitless Chief Growth Officer Paul Pickett. Under is the primary in a collection of chosen highlights. All convention attendees acquired a complimentary copy of the 2023 AFDR.
General, 2023’s deliberate recruitment budgets fell YOY. It’s essential to notice, nevertheless, that 2022 was an outlier 12 months, with the best median and common recruitment budgets since 2015, as franchisors recharged their recruitment budgets after trimming them severely in 2021 in Yr 2 of Covid.
For reference, these 2022 recruitment budgets clocked in on the highest stage ever within the report’s historical past, averaging $261,543 with a median of $200,000. That compares with this 12 months’s common of $225,240 and median of $143,000.
Trying again a bit of additional, this 12 months’s numbers exceeded 2021’s Covid-depressed common of $174,770 and median of $120,000, and was pretty near 2020’s common of $215,173 and median of $150,000—pre-Covid planning numbers that represented a 7-year excessive on the time. For additional comparability, these figures in 2019 had been $186,818 (common) and $127,000 (median).
Subsequent time: 2022 Spend: Price range vs. Effectiveness