FR ANCHISING TRENDS IN 2022
Franchise System Trends
FranConnect president Keith Gerson explores what new franchisees can expect from franchisors in 2022 and beyond, from the rise of the “experience officer” to increased use of tech BY KEITH GERSON, FRANCONNECT
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or a prospective franchisee, it’s important to carefully consider what franchise system will be a good fit with your background, business goals, and lifestyle. You also want to find a franchisor who is invested in driving franchise profitability, satisfaction, and longevity. How do you know what to look for in a potential franchisor? As a leader in franchise management performance systems with more than 40 years’ experience as a franchisor, I see several key trends that smart franchisors are taking on. Here’s what’s on the horizon for franchise systems in 2022 and beyond. Introducing the chief franchise experience officer (CFXO) The next few years will likely see franchisors introducing the role of a chief franchise experience officer (CFXO), the executive who wakes up every morning thinking, “how do we continually improve and deliver a better experience for our franchisees, and why is that important?” Harvard Business Review makes the case that every company should have a chief experience officer (CXO)—so why not a CFXO? The role of the CFXO isn’t too dissimilar to that of a chief customer officer. Specifically, the CFXO’s role is to engage the franchise organization in improving franchisee relationships, revenue, and profit. It’s also to create a persistent focus on the franchisee in the actions the franchisor takes to drive the organization to work together for optimum franchise experience delivery and to support and to serve as a change agent inside the franchise organization.
26 Canadian Franchise Association
One area in need of a CFXO’s focus is that it’s often the highest franchise revenue contributors that are the most unhappy. It’s not unusual to hear a long-term, high performer lamenting the fact that they pay the most money in royalties and put the least demands on a franchise system, but get less relevant support than new franchisees and average performers. The primary role of the CFXO will be to oversee every interaction that a franchisee has with the brand. This will be accomplished with tools like franchisee journey mapping, the process of creating a visual story of franchisees' interactions with the brand. This exercise helps franchisors step into their franchisee's shoes and see their business from the franchisee's perspective. A move towards tiered support Along with the introduction of CFXOs, it’s my belief that the franchisor of the future will evolve the present role of the franchise business consultant (aka operations manager, business coach, etc.) into the role of a highperformance coach that’s trained on understanding the principles of behavioral management, improving communications, conducting coaching analysis and problem resolution, building confidence, and conducting challenging discussions when needed. This evolved role will be that of a “franchise success coach” (FSC). The traditional franchise business consultant’s role is unique in that they wear multiple hats. They must understand the strategic initiatives of the franchisor to make sure these get deployed at the franchisee level. They also need to make the franchisee feel they’re there for them, to improve their business. The best franchise
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