What Is A Typical ROI When Working With A Franchise Marketing Agency?

Any time you are spending money on advertising, it is important to have in mind some type of a Cost Per Sale and ROI.  This is especially important when asking yourself the question, “What Is A Typical ROI When Working With A Franchise Marketing Agency?”.

When it comes to franchise development marketing, it’s important to know up front what to expect for a Cost Per Sale.  And, it’s also important to have a general idea of what the Cost Per Sale is typically like for Franchise Agencies versus Franchise Broker Networks, as many franchisors engage the services of both.

Our main focus here at Lead PPC is franchise leads and franchise lead generation.

 

Franchise Broker Network Cost Per Sale:

In order to best understand the Cost Per Sale (CPS) of working with a Franchise Marketing Agency, it’s best to put that amount in the context of the baseline CPS of engaging with a Franchise Broker Network.  In general, it costs between around $22,000-$40,000 per sale in fees when working with a Franchise Broker Network.  This typically includes:

1. Monthly Subscription Fee
2. Yearly Convention Fee
3. Franchise Sales Commission

 

Franchise Ad Agency Cost Per Sale:

Within the industry, typically it costs around $13,000 per sale via PPC (Google Ads + Meta Ads).  Our own company’s track record is between about $7,000-$12,000 per sale depending on the investment amount, response time, and how good the actual franchise opportunity is.  So, in general working with a Franchise Advertising Agency is going to be about 1/3 – 1/2 the cost of working with Franchise Broker Networks.

 

Pro Tip: Use 1 Franchise Marketing Agency + 1-3 Franchise Broker Networks:

Having been doing this for over 13 years now, one of the most common setups that we see with successful franchisors is when they engage a Franchise Marketing Agency such as ourselves here at Lead PPC plus engage with 1-3 Franchise Broker Networks such as IFPG, Franserve, and TES.

 

Need Help?

If you need help testing Google and/or Facebook ads for your franchise, please fill out our Contact Us form. We would be glad to help.

 

General Information On Marketing Agencies:

Investing in a franchise marketing agency can be a game-changing decision for your business. However, to make an informed decision, it’s essential to understand what a typical return on investment (ROI) looks like when working with such an agency.

To set the stage, let’s first define what a franchise marketing agency is. Essentially, this is an agency that specializes in supporting franchise businesses with their marketing efforts. They’re experts in the franchise model and understand the delicate balance between promoting the overall brand and supporting individual franchisees.

Now, on to the main question at hand: what is a typical ROI when working with a franchise marketing agency? The answer, of course, depends on various factors, including the size and type of your franchise, the strategies implemented, and the level of expertise of the agency. However, generally, franchise businesses can expect an ROI in the range of 2:1 to 10:1. This means that for every dollar you invest in a marketing agency, you can expect to get back between two to ten dollars in return.

Let’s break that down a bit. If you’re pulling in a 2:1 ROI, that’s considered break-even. You’re getting back your investment, but not making a significant profit. However, an ROI of 5:1 is considered strong for most businesses. This is a good benchmark for franchises to aim for. Anything above this indicates an excellent return.

Remember that these are general ranges. The specific ROI you can expect can vary widely based on factors we mentioned earlier. So, it’s crucial to have open conversations with potential agencies about your business goals and what kind of ROI you can realistically expect.

It’s also important to note that ROI is not just about dollars and cents. Working with a franchise marketing agency can bring other types of returns. For example, you can benefit from their expertise in the franchising industry, get access to tested and proven marketing strategies, and have more time to focus on other areas of your business. These are intangible returns, but they’re just as valuable, if not more so.

In conclusion, working with a franchise marketing agency can bring significant ROI, both in terms of revenue and other less tangible benefits. However, it’s essential to have clear expectations and open communications to ensure a successful partnership. Remember, the success of your franchise is a team effort, and a good franchise marketing agency should be an integral part of your team.

 

Need Help?

If you would like to speak with us about potentially having us help drive quality franchise leads for your franchise please fill out our Contact Us form.

We are a boutique franchise marketing agency / franchise ad agency that specializes in franchise marketing and franchise advertising via PPC (Google Ads + Meta Ads).

Additionally, if you need help with franchise sales or with finding a solid franchise broker, we would be more than happy to share our opinions with you on the subject.  Thanks!