How much to charge for your franchise convention.

Setting the right price for your franchise convention can feel like a balancing act. 

Charge too much, and you risk low attendance. Charge too little, and you might not cover costs or convey the value of the event. 

Here are the trends we’re seeing for franchise conventions, and recommendations for setting your own pricing.

What we’re seeing in the market for franchise convention pricing.

The majority of our franchise clients include their franchise convention pricing in the overall cost of operating a franchise. Less common is charging separately for the convention.

The approach here makes the convention less of a nice-to-have and more of a requirement for franchisees. They already paid for their ticket, so they should be more encouraged to attend.

The cost per ticket can range, but we typically see franchise convention tickets priced anywhere from $500 to $1,500 per person.

Plus, franchisees are expected to cover the cost of their flights and hotels. 

Sometimes these costs are rolled into the overall convention fee that franchisees pay annually, and sometimes franchisees pay these separately. An advantage to including these costs in the overall franchise fee is that they will be encouraged to stay at the hotel you choose, which will help not only improve the overall event experience but will also help you avoid attrition.

Factors influencing convention pricing.

Several factors determine how much you should charge for your franchise convention, but we recommend creating an overall budget and then breaking it down per-person to help you determine a general price per ticket.

1. Venue costs: The location and size of the venue can significantly impact your pricing. High-demand venues in central locations typically cost more but may attract more attendees.
2. Food & beverage costs: Food and beverage offerings are a major expense, and attendees often equate high-quality catering with a well-run event. You may consider having franchisees cover a meal or two on their own, or you may want to cover all meals. In this case, you’ll want to consider the per-person F&B cost.
3. Technology and tools: From registration software to event apps, these tools enhance the attendee experience but add to the overall cost.
4. Marketing and branding: Effective marketing ensures attendance but requires a budget for promotions, design, and materials.
5. Add-ons and perks: Offering extras like swag bags, VIP experiences, or networking receptions can increase costs but also justify a higher ticket price.
6. Event management: A/V production, event staff, pre-planning, etc. all factor into the overall cost of the event.

A pricing formula to get you started.

Here’s a simple formula to help you determine a baseline price per attendee:

Ticket price = [(Total expenses + Desired profit) - Sponsorship dollars] / Expected attendees

• Total expenses: Include all costs such as venue, catering, speakers, marketing, and logistics.
• Desired profit: Add a profit margin to cover unexpected costs or reinvest in your franchise.

• Sponsorship dollars: If you have sponsors or exhibitors at your event, subtract the expected sponsorship dollars from your expenses.

• Expected attendees: Use past data or industry benchmarks to estimate attendance.

For example, if your total expenses are $2,000,000, and you aim for a $100,000 profit, with a total sponsorship amount of $500,000 and an expected attendance of 1,000 people:

Ticket Price = [(1,500,000+100,000) - $500,000] / 1,000 = $1,100 per ticket

Addressing pricing challenges.

1. Balancing costs and affordability: One challenge is ensuring your ticket price is affordable for franchisees while covering costs. Consider offering early-bird discounts or group rates to boost initial registrations.
2. Conveying value: Higher ticket prices require clear communication of the convention’s value. Highlight keynote speakers, unique learning opportunities, and networking benefits in your marketing materials.
3. Unexpected costs: Build a contingency fund into your pricing to handle last-minute changes, such as increased AV costs or travel reimbursements for speakers.

Measuring success.

Unsure if your ticket prices are hitting the mark? Use these metrics to evaluate your pricing strategy:

• Full attendance: Did you meet or exceed your attendance goals?
• Positive feedback: Conduct post-event surveys to gauge attendee satisfaction and perceived value.
• Break-even or profit: Review financials to ensure you met your profit objectives.

Ready to get started? Let’s plan your next franchise convention together.