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Cost per franchise sale calculator for franchisors

Cost per franchise sale is everything you spend on recruitment in a year, divided by the franchises you signed. Add your numbers below and see how you compare with the 2026 industry averages.

Your last 12 months

Recruitment costs

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Results

Your result

Cost per franchise sale

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Total recruitment cost$—
Cost per lead—
Leads per signed franchise—
Enter your costs and franchises signed to compare with the 2026 average for your system size.

Averages: Franchise Update Media, 2026 AFDR (franchising.com, Sep 2026; sample size not disclosed). Under 25 units $14,795; 26 to 100 units $35,388; 501 to 1,000 units $11,000.

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How do you calculate cost per franchise sale?

Total recruitment cost ÷ franchises signed = cost per franchise sale

Use the same 12 months for both numbers. Include everything you spend to recruit: ad spend, agency and tool fees, broker fees, portal and listing costs, events, and if you want the full picture, your development team's time.

Why does it beat cost per lead?

A cheap lead that never signs is expensive. Cost per franchise sale is the number that tells you what growth actually costs, and it lets you compare brokers, portals and ads on the same terms.

Why is the 20-week lag a problem?

Franchise deals take about 20 weeks to close (Franchise Update Media, 2025 AFDR). Spend from this quarter signs next quarter. Look at cost per sale over 12 months, and track each lead from first click to signed agreement, or the number will swing for no real reason.

The averages are published benchmarks with an undisclosed sample. Your own tracked number is the one to manage.

From our insights

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Lead generation
What does it cost to sign a franchisee, not just get a lead?
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Questions franchisors ask

Cost per franchise sale FAQ

What is a good cost per franchise sale?

One below the average for your size and falling. The 2026 AFDR average is $14,795 for systems under 25 units and $35,388 for 26 to 100 units (Franchise Update Media, sample not disclosed).

Should broker fees count?

Yes. They're part of what it costs you to sign a franchisee. Track them by source so you can compare.

Do you store what I type?

No. The calculator runs in your browser; nothing is sent anywhere.

Can you get this number for us automatically?

Yes. Tracking from click to signed agreement, by source, is part of the system build. See pricing.

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I guess what we're trying to say is: book the damn call.

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