5th edition of the industry benchmark provided franchise-sales insights during the pandemic.
HERNDON, Va. — June 9, 2020 — FranConnect announced the release of its 2020 Franchise Sales Index Report, a benchmark of franchise-development data intended to help operators understand the state of franchise sales and improve sales effectiveness.
The report analyzed anonymized and aggregated data from 597 franchise brands across nine vertical markets: Personal Services, Quick Service and Fast Casual Restaurants, Table/Full-Service Restaurants, Lodging, Retail Food, Retail Products & Services, Real Estate, Business Services, and Commercial & Residential Services.
“This year’s report confirms that there was already a notable decline in franchise sales leads before the pandemic, the result of a then full-employment economy,” said Keith Gerson, CFE, President of Franchise Operations at FranConnect. “What the pandemic has accomplished is to reveal the cracks that already existed in many franchise sales programs and systems.”
Key Findings
- Total average lead volume per brand fell 12% year over year.
- The overall lead-to-deal ratio decreased by 10% year over year.
- Franchise portals generated the most leads but ranked fourth in closed deals.
- Referrals and brokers produced stronger conversion rates than the prior year.
- 85% of leads that resulted in deals were contacted within the first four hours of inquiry, reinforcing the importance of speed-to-lead.
- Nearly three-quarters of leads failed to receive meaningful follow-up, exposing a major process gap across many organizations.
The original 69-page report was distributed through a legacy blog/download destination. For current franchise-growth benchmarking, visit the Franchise Growth Benchmark.
About FranConnect
FranConnect provides franchise management software supporting development, operations, performance, and growth across multi-location brands.
