Economic Considerations

FreeFranchiseExpo is designed to provide a cost effective resource to augment your current lead generation strategies. The most effective franchisors evaluate trends and uses a combination of cost effective lead generation resources. Attributes that have fueled the explosion of social media are designed into this virtual franchise expo and education resource. FreeFranchiseExpo provides a “Fixed” lead generation cost for budgetary planning for the entire year and generates better educated and quality leads while you sleep. Unlike some options – the franchisor decides what is presented, has a more level playing field to have their concept seen, and has greater ability to present more information and flexibility to update their message, videos, and other marketing materials. In addition, analytics are included to measure the economic success of that message and materials. No other method or venue provides the combination of ease of use, access, reach ability, interactivity, education and engagement capability of a virtual franchise expo. When one considers and compares ALL of the costs (Lead acquisition, lead to close ratios, labor) and finally the cost per deal amount, FreeFranchiseExpo is extremely affordable.

See bar graph comparisons below

Considering Brokers

The demand for franchise brokers (consultants, coaches, advisors, etc.) has skyrocketed in the last decade. They provide a good resource to screen candidates at a premium price that is rising much faster than many other marketing costs. Approximately 57% of franchisors use franchise brokers. As a result, many franchise broker groups now represent hundreds of franchises (some include business opportunities) – and adding more - making it even more difficult to have your brand represented or shown. Franchise brokers or consultants often show 3-5 of their best concepts to a prospect (increasing your competition). To compete for greater exposure, franchisors are responding by increasing the fees they pay or offer bonuses, trips or other incentives creating even greater competition and higher overall costs per deal. This rising demand has resulted in several brokerage groups now charging franchisors additional marketing, event and entry fees to gain greater exposure in addition to the broker fee itself, all creating a ever more expensive “Pay to Play” environment. The average broker fee in 2009 is reported to be $15,000 (40%-50% of license fee) however many are stating the more accurate fee is now around $18,000 - $20,000 to garner the attention of brokers.

Trade Shows

Trade Shows provide an interactive, on-site and visual environment for consumers to obtain information about franchising and see many different concepts in one place. However, they do have limitations and disadvantages for both consumers and franchisors. Consumers and franchisors find that they are infrequent (usually only on a weekend), often confined to larger metropolitan markets in hard to reach or undesirable downtown locations and therefore are not reasonably or conveniently accessed by a large section of the population when they desire. They can also be expensive, time consuming and undesirable when one considers travel, parking, entry fees, and interruption of one’s weekend plans. In a survey of those attending a virtual internet event – only 7% stated they would have attended the event if they had to attend in person due to inconvenience of going to the event. Many franchisors are finding that rural and smaller metropolitan markets are a “Gold Mine” of prospective franchisees that haven’t already been sifted. These markets often have less competition resulting in higher revenues, royalties, lower operating cost and higher franchise satisfaction and validation. Traditional franchise shows won’t go there but FreeFranchiseExpo does! Costs for the franchisors have increased as well. In addition to the cost of the booth, one often has to rent furniture, electrical, and other items and services. One also must add travel, mileage, airport parking, hotel, taxi, meals, tips and manning the booth and follow up labor costs per person. Finally there are literature, shipping, and follow up costs. Total costs are estimated to be between $10,000 and $15,000 (not counting labor costs) per major weekend event. Traffic is approximately 5000 for 200 exhibitors.

The Problem with Portals

The internet has been a very convenient resource for consumers and a source for volume leads for franchisors, franchise brokers and others. Consumers have enjoyed the ease of use but there has been very limited information on a particular franchise to really engage the consumer. For franchisors it was once a tremendous value as a new technology that attracted high quality candidates especially toward the end of the 20th century. During the 1990’s, many reported average lead to close ratios of approximately 4% (some much higher). Those numbers have significantly deteriorated in recent years as more are migrating to social media and better education resources - which Free Franchise Expo provides and What Consumers Want!