FranConnect’s seventh annual Franchise Sales Index quantified the impact of the pandemic on franchise development and pointed to a potential sales rebound.
HERNDON, Va. — April 27, 2021 — FranConnect released its 2021 Franchise Sales Index Report, based on real-world franchise-development activity from more than 600 customers ranging from micro-emerging brands to enterprise concepts.
Key Findings
- Lead generation declined significantly. Enterprise brands saw leads fall 36%, while Business Services experienced the largest industry decline.
- Total deals closed fell 28.8% year over year. Commercial & Residential Services and Retail Food were exceptions, with increases in deals per brand.
- Trade shows and conferences were the only lead source to increase slightly. The shift from in-person to virtual events did not eliminate interest in franchise opportunities.
- Franchise referral consultants were the largest source of deals.
- Sales-cycle time increased dramatically. Average days from inquiry to close more than doubled.
“While our data reveals that the franchise sales function overall took a big hit in 2020 because of the pandemic, franchise brands of all sizes continued their recruitment efforts and reported strong results despite the incredibly challenging environment,” said Keith Gerson, President of Franchise Operations for FranConnect.
Gerson said brands should prepare for a rebound by focusing on lead response, appointment setting, and disciplined follow-up as candidate demand returned.
The legacy download and custom-benchmark destinations associated with this historical report have been superseded. For current benchmark data, visit the Franchise Growth Benchmark.
About FranConnect
FranConnect provides franchise management software supporting development, operations, performance, and growth across multi-location brands.
