When you hear the words “franchise development planning,” it might sound complex. Overwhelming, even. But it’s the heartbeat of franchise growth — and what pumps through Hot Dish’s veins.
Think of it as setting your GPS: just like you need to know where you’re going, which turns to take and how long it’ll take to get there, you need to know what leads cost, how often they turn into sales and when a targeted ad budget might stretch further than broker fees.
Franchise lead generation budget planning is the key to squeezing more out of every one of your marketing dollars, staying up on industry trends and making real connections with potential franchisees that count.
Ready to map out your 2025 franchise lead generation marketing budget? Here’s the latest data and tips to guide you on your way.
The Starting Point: Industry Averages
Data from the 2025 Annual Franchise Development Report by Franchise Update Media gives a clear picture of industry averages for franchise development cost per lead (CPL) and franchise cost per sale (CPS), which have seen modest increases from last year. These benchmarks are helpful for franchisors in evaluating their budgets and determining realistic outcomes for growth in 2025:
- Industry average CPL 2025: $271
Industry average CPL 2024: $253 - Industry average CPS (non-broker) 2025: $13,757
Industry average CPS (non-broker) 2024: $11,639 - Industry average qualification rate: 20%
How Hot Dish Compares
At Hot Dish, we’re all about data that drives down costs — staying ahead of industry averages so our clients can get more out of their investment. As of September, our year-to-date metrics* are:
- Average CPL: $75
- Average CPQL (cost per qualified lead): $287
- Average Qualification rate: 31%
Our focus on high-quality, intent-driven leads ensures that every dollar spent works harder to drive franchise growth than the industry average. In fact, Hot Dish clients usually get three ads here for the cost of one at industry average.
“Our team is so dialed into understanding our client prospects that it’s almost second nature. We don’t just set campaigns and walk away; we use real-time learning to adjust and optimize for peak performance. It’s all about staying in the moment and ahead of the curve.” – Roman Sandler, Director of Media
The SMART Formula: The Secret to Budget Planning
In order to create a plan to reach this year’s goal, you’ll need to estimate the number of leads required to close a sale. Typically, it takes around 100 leads to secure one franchise deal. Data-based planning like this allows franchisors to structure achievable goals and maximize their return on investment (ROI).
By using the following data-based planning approach, you can create your own achievable goals:
- Determine lead volume: Multiply your target number of deals by 100 to find your required lead volume. For example, if your goal is to close 50 franchise deals, you’ll need approximately 5,000 leads. Also, note that if you’re aiming for 100 new units but expect existing franchisees to expand by 20 units, you can reduce your new target to 80 units.
- Calculate a CPL-based budget: Multiply your estimated lead volume by your CPL. With Hot Dish’s CPL of $75, a target of 5,000 leads translates to a budget of $375,000. Using the industry average of $271, that translates to $1,355,000 — which is definitely not chump change for most companies.
- Check feasibility: If the estimated cost is too high for your marketing budget, you can lower your unit goal to better match your budget.
Ad Spend Versus Broker Fees: Which is Better?
There is no right or wrong way to generate leads. Some brands thrive with paid advertising, others with brokers, or some find success with a combination of the two. However, it’s important to understand the differences in cost and effort required and what your brand has the appropriate resources to manage.
For example, paid advertising can generate a high volume of leads, which might overwhelm a team without the capacity to manage them. In contrast, brokers typically deliver fewer, but highly qualified, leads that are ready to buy, reducing the workload. The right choice depends on your brand’s time, resources, and ability to handle the leads effectively.
The 2025 report shows that broker fees approach $50,000 for a single cost per sale, whereas here at Hot Dish, our targeted digital ad campaigns deliver high-quality leads at a fraction of the cost. When deciding whether to work with a broker or an advertising partner, consider the following:
- Flexibility: Digital ad campaigns allow for fast adjustments based on real-time data, which means franchisors can adapt spending levels at any time.
- Measurability: Digital ad spend provides measurable results, leading to more informed campaign adjustments for greater success.
- Cost-effectiveness: You can control spending more effectively and leverage performance insights for better lead quality over time.
In short, digital advertising and broker deals complement each other by leveraging the strengths of both channels — digital advertising provides scalable, measurable media that reaches and attracts potential candidates in key markets, while brokers bring highly-qualified leads, valuable market insights and a personal connection to the process.
Your Partner for 2025 Growth
At Hot Dish, our metrics-based planning approach helps us set realistic goals for our clients and guide them in making smart budget and marketing moves. By grounding everything in solid, industry-backed data, we make it easier for you to understand your growth plan and make the most out of your ad spend.
Whether you’re looking to add a just a handful of franchisees or have even bigger goals, we’ve got the know-how to make it happen.
If you’re ready to plan your 2025 budget, reach out to us for help in creating your SMART, data-driven marketing plan that delivers.
*YTD-September 2024. Your results may differ. There is no assurance or guarantee that you will do as well.
