2016 AFDR kers, down slightly from last year’s 49 percent, 48 percent in 2013, and 44 percent in 2012. Of those who do use brokers, 86 percent used a broker firm that specializes in franchising (up from last year’s 78 percent) and 58 percent used an independent broker/consultant. n
CONVERT!
Pete Lindsey has a big word on his office wall: Convert. “You have to measure conversions, but a lot of people get too complicated,” he says. For him there are three conversions to watch: 1) lead to inquiry, 2) lead to discovery day, and 3) discovery day to contract. His approach is to give his sales team numbers to meet, then help them hit those numbers. “When your team realizes they can move conversion metrics, you have a really powerful team,” he says. “We goal set every year and move them up. It doesn’t work if people don’t know exactly what they’re responsible for.” And, he’s found, when someone on his team is struggling to meet their numbers, team members will rally around that person and ask what they can do to help.
• Mobile/smartphones. Franchisors who have not optimized their online presence for mobile devices (smartphones and tablets) are at a disadvantage when it comes to lead generation. More than half of Internet leads (51 percent) now come from smartphones alone, according to research conducted by Landmark Interactive this summer. These results, combined with Google reporting in October that mobile searches surpassed desktop searches, are a wake-up call for franchisors. The shift to mobile should surprise no one: more searches are conducted from mobile devices each year for everyday purposes, and prospects will shop for brands using the same tools and methods they use to find shoes or restaurants. In addition, not only are desktop searches declining, so are searches from tablets. Franchisors who do not tailor their online presence to meet prospects where they are—on their phones—deserve what they don’t get. “If you’re not mobile-optimized, you’re losing leads,” said Gardner. • Brokers. Franchisors love brokers. Franchisors hate brokers. Regardless, franchisors use brokers. Almost half (46 percent) of this year’s AFDR respondents said they use bro-
WHAT IS FRANCHISE DEVELOPMENT? “What I have learned over the years is that it’s not rocket science—it’s just attention to detail, and a mentality of honoring the fact that people are interested in investing in your brand,” says Paul Pickett. “And when you’re able to create a culture like that, it is very rewarding and easy to attend to your candidates in the way they want to be attended to.” Pickett takes his role seriously. “When I see people not attending to candidates, or not answering their questions, I think, ‘Are you looking at candidates as an honor to serve them?’” he says. “You’re there to help grow your brand. If you don’t believe in that, you might consider another career path,” he says. “It’s a commitment to doing the right thing for your potential candidates and for your brand.”
Broker specializing in franchising
Independent broker/ consultant
Received qualified applications from brokers in the past 12 months
85%
50%
Broker applications produced sales in the past 12 months
60%
40%
13.4%
8.5%
4
1.1
Average number of sales expected from applications provided by brokers in 2016
8.0
5.1
Average commission fee paid to brokers per single-unit franchise agreement signed
$11,963
$6,519
% of broker applications closed in the last 12 months Average number of franchise deals made with brokers in the past 12 months
Franchiseupdate I S S U E I V, 2 0 1 5
33