Budgeting for franchise growth is very brand- or category-specific and must take into account competition from brokers, advertising and all other parties aiming to attract the candidate’s attention.
A common approach to franchise budgeting is to consider the franchise fee as the cost of acquisition, but it is also crucial to understand the deal value, which is the expected royalty over a certain period.
The Growth Club recommends allocating a budget of $25,000 per deal on average, or considering a rolling budget. Remember, consistency in budgeting is crucial and turning off investments can lead to stagnation.
