--94eb2c11246c928b1c055f8d0fc6 Content-Type: text/plain; charset="UTF-8" Content-Transfer-Encoding: quoted-printable Tim Thank you for your questions. The average cost of client acquisition in 2016 was 12 - 14% of gross sales. We began a targeted marketing campaign with American Airlines at the tune of 50k per year. We ended that campaign this year. Most of the monies are spent on franchise brokers, franchise portals and print. I would suggest you hit the franchise shows in UK and work with Helen, who we marketed through for lead generation. You may spend more your first 2 - 3 years to build brand recognition, but cost should lower over time. Paul in Australia work the franchise portal and then worked exclusively with a franchise broker. The conversion from suspect (this is the step prior to coming a lead) to franchisee is 1.8% last year. We had a lot of leads from Franchise Gator and Franchise Opportunities. Both bought a lot of low quality leads and we more recently ended our contract. I do believe this number will increase. We will have less leads, but higher quality leads. Legal costs in the beginning are mainly to ensure you have a strong FDD. We utilize Carl Zwister in the US for UK agreement. He could direct you to some strong attorneys in the UK. The good news in UK is you do not have to disclose. You may want to out of good faith, but that cuts down on legal costs. Our costs are very minimal, unless there are changes of some type. On average, Matt charges about 300.00 - 500.00 to draw up papers. Again, very minimal costs. The majority of the cost will, as stated, creating the FDD and then doing yearly updates. We have to file documents for each state, whereas, you have one country, so costs will be in check. On support person can support an average of 30 - 35 sites. This includes bi-weekly calls and annual visits. The travel costs in UK will be minimal versus the US. On support person produces an average of 35 - 40M in gross revenue. Starting out, you and Steve should be able to grow the network without a support person. At HCA, Lily and Russell grew to 30 sites, with little outside resources. It was after this point that myself and Kathryn came on board. Please let me know if you have any further questions. I would be free to jump on a call with you on Wednesday. Thanks, Barbara On Fri, Dec 1, 2017 at 11:43 AM, Timothy Thomas wrote: > Hi Jennifer, > > I'm building a financial model and I have a few questions regarding > costs... > > Would you know the average franchise sale acquisition costs? As in how > many marketing dollars does it take to generate a lead or sale for that > matter? > > What is your conversion rate per lead? > > What are the typical legal costs (agreement drafting etc) per unit sale? > > What is the approximate franchise support cost per unit. I suppose it's > mostly salary of support person + travel, divided by the number of > units....how many franchisees can one support person handle. > > Thanks, > Tim > > On Fri,