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Personal Services Brands Franchise Sales ReportBenchmarks & Insights to Drive Growth

Selected data from theThe FranConnect Franchise Sales Index Report 2019

FRANCONNECT BY THE NUMBERS

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LEADER IN FRANCHISE INSIGHTS

FranConnect has more access to franchise data than any other company

in the world.

We are more than best-in-class franchise

performance management software.

We are also best practices in franchising.

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FRANCHISE SALES INDEX REPORT

Where & How We Derived our Metrics

• Represents franchise data from 554brands of which 160 represents Personal Services Brands.

• Covers the 2018 calendar year

• Leverages aggregated & anonymized data located within the FranConnect Franchise Sales Application

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A r e y o u a t t r a c t i n g q u a l i t y l e a d s w i t h t h e g re a t e s tl i ke l i h o o d of m o v i n g f o r w a rd i n y o u r s a l e s p ro c e s s att h e m o s t re a s o n a b l e c o s t - p e r - a c q u i s i t i o n ?

Personal Services

Part 1:Sales Lead Generation by Market Size

MARKET SIZE DEFINITIONS

Micro-emerging brands: 1-10 locations

Emerging brands: 11-75 locations (emerging can also include re-emerging

brands that have passed through a stagnant period and are once more

experience growth)

Mid-market brands: 76-200 locations

Enterprise brands: 200+ locations

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Franchise Sales Insights – Personal Services Brands

NUMBER OF BRANDS BY MARKET SIZEThe 2018 Franchise Sales Index Report provides valuable insights from organizations across 4 key market segments.

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CLOSED LEADS BY MARKET SIZE

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AVERAGE MONTHLY LEADS BY MARKET SIZECompared to the previous year, franchisors with 200+ locations saw an increase in the number of leads generated on a monthly basis.

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Part 2: Overview of Leads & Deals

A r e y o u u s i n g t h e r i g h t t o o l s t o c o n n e c t w i t h l e adsi n y o u r v e r t i c a l / i n d u s t r y?

Personal Services

TOP 10 LEADS BY STATE


LEADS BY SOURCEWebsites were the number one source for leads in 2018.

Top 5sources for

leads in 2018

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DEALS BY SOURCEWebsites were shown to generate the most deals in 2018.

Top 5 lead sources that generated

deals in 2018

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• Despite being among the Top 5 leads by source, Social Media does not appear in the Top 5 deals by source.


TOP 5 LEAD-TO-DEAL RATIOSBrokers have the highest conversion rate for leads that became deals.

• The average close rateof Personal Services Brands in 2018 is1.14%.

• Lead sources with the highest percentage of deal conversions primarily came from Brokers and Referrals.

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Part 3: PortalsA f r a n c h i s e s y s t e m s s t r a t e g y f o r p o r t a l l e a d s s h o u l dva r y w i t h m a t u r i t y a n d b r a n d a w a re n e s s .

Personal Services

PERCENTAGE OF LEADS BY PORTAL

Top 10portals

generating the most

leads

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DEALS BY PORTAL

Top 10portals that generated the most

sales

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Entrepreneur generated the most deals in 2018.


CONVERSION RATE BY PORTALHubSpot Opportunity provided the highest quality leads in 2018.

The key is to invest in Portals that are proven to close at/above your current closing averages.

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Part 4: BrokersB ro ke r s p ro v e d i n 2 0 1 8 t h a t t h e c a l i b e r o f l e a d sc o n v e r t a t s o m e of t h e h i g h e s t l e v e l s e a r n i n g t h e m ap l a c e i n m o s t b r a n d t o o l k i t s .

Personal Services

TOP 5 LEADS & DEALS BY BROKER

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LEAD TO DEAL RATES BY BROKER

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FranServe and IFPGprimarily serve the emerging brands

market.

Part 5: Initial ContactD o y o u k n o w h o w y o u r i n i t i a l r e s p o n s e t o l ea dsi m pa c t s y o u r s a l e s e f f e c t i v e n e s s ?

Personal Services

TOTAL LEAD-TO-DEAL TIME

Days from Inquiry to Close

• Improvements YOY saw averagedecrease from 236 days to 188 days

• The lead-to-deal time for franchisors in Enterprise market slightly increased in 2018.

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Personal Services Brands

DEAL PERCENTAGE BY RESPONSE TIME

Speed to the lead is no longer an option.

• On average, franchisors who made initial contact within 4 hours of receiving a lead closed 84.8% of all deals.

• Close rates significantly decline if initial contact is made after 4 hours.

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Personal Services Brands

Part 6: Funnel Management

D a t a s h o w s t h a t t h o s e t h a t e n t e r t h e t o p o f t h ef u n n e l n e v e r r e c e i v e a c a l l , a n d t h o s e t h a t d o areo f t e n c o n t a c t e d t o o l a t e .

Personal Services

Over 55% of Personal Services franchisors FAILED to make any initial contact with prospects.

Many franchisors complain about the lack of quality leads. Our data makes the formidable argument that issue is more likely the failure to follow-up.

PERCENTAGE OF LEADS THAT RECEIVED NO CALLS

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Poor data hygiene has a tremendous and negative impact on the accuracy and trustworthiness of your data.

ACTIVE & DUPLICATE LEADS

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T h e ke y t o a h i g h c l o s i n g r a t e i s t o a l i g n a n d e xe cu t ec o n t i n u o u s m a r ke t i n g a n d c o m m u n i c a t i o n a c t i v i t i e sa t e a c h s t a g e o f t h e s a l e s p ro c e s s .

Part 7:Nurturing Candidates to Closure

Personal Services

BRANDS WITH CAMPAIGNS BY STAGE

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LEAD DROP-OFF STAGELead drop-off’s on New Lead Status decreased from 63.3% in the previous year to nearly 56.6%.

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LEAD DROP-OFF REASON

No Responseincreased from 41.8% in the previous year to

51.1% in 2018.

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APPLICATIONS BY SOURCELeads generated from Websites had the highest application conversions then any other lead source.

Top 5Sources forleads whosubmittedapplications

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TOP 5 LEAD-TO-APPLICATION RATIOSBrokers generated the highest lead-to-application ratios in 2018.

Are you asking for too much

information to early in the sales process?

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