This year’s Mystery Shop tested franchise recruitment fundamentals, uncovering what works, what’s slipping, and where brands can improve.
The STAR Awards spotlight franchisors whose creativity, responsiveness, and digital strategy redefine how brands attract and engage franchise candidates.
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Balancing Data and the Human Touch in Franchise Development
For the Q4 issue of Franchise Update magazine, we dove headfirst into franchise development, the lifeblood of franchising. It’s what fuels growth, drives profitability, and builds lasting value.
Frandev is also about people. Success requires the right franchisees, relationships, and support systems. In an increasingly competitive marketplace, franchise development has become both an art and a science powered by data, driven by innovation, and sustained by human connection.
That balance was on full display at the recent Franchise Leadership & Development Conference (FLDC), which drew more than 500 attendees to Atlanta. This year’s sessions focused on issues crucial to franchising, including profitability, AI-driven lead generation, and the evolving metrics of success. Keynote speakers inspired those in attendance to look at their roles from different perspectives. In addition, a packed Exhibit Hall provided plenty of networking opportunities.
The FLDC is where the latest Annual Franchise Development Report (AFDR) is introduced each year. The report indicated that development professionals are returning to fundamentals. Referrals continue to deliver the highest conversion rates while local events, direct marketing, and other traditional outreach methods are gaining renewed traction. And it’s no surprise that artificial intelligence (AI) is reshaping development strategy. With 52% of brands already using AI to personalize communication and streamline recruitment, we’re seeing a high-tech, high-touch era of growth.
The results of the 2025 Mystery Shop were also revealed. This year’s study found that while text responsiveness and recruiter availability are improving, many brands still falter in the fundamentals, including follow-up calls or listing phone numbers on their websites.
The announcement of this year’s STAR Awards was saved for the conference’s final evening. The awards celebrate the top performers in franchise recruitment and development, and they honor excellence in frandev websites, lead form submissions, and responsiveness. The event is also a platform to recognize winners of the Franchise Innovation Awards, which spotlight creative strategies in lead generation, onboarding, PR, and franchisee profitability.
In this issue, you can learn more about these stories and read our expert columnists’ takes on AI, private equity, sales team hiring, and of course, frandev.
Franchise development sits at the heart of every thriving brand. It’s the force behind expansion, profitability, and enduring value. In today’s fast-changing market, successful franchise development requires leveraging technology and analytics while staying rooted in authenticity and human connection.
Kerry Pipes
KERRY PIPES Executive Editor
SOLVING BACKYARD PROBLEMS
Founder’s frustration inspires Puddle Pools
Written by TIM KOCH
Now and then, a brand comes along that makes you wonder how no one thought of it sooner. Puddle Pools is one of those brands. The brand has taken something most homeowners and property managers view as a headache (pool and spa maintenance) and turned it into a polished, scalable business with staying power.
From the moment we met the leadership team, it was clear to me that this was more than just a good idea. It was a personal story backed by serious business know-how and ready to make a splash in both U.S. and Canadian markets.
NECESSITY
Puddle Pools started with a pool owner who couldn’t get decent service. Mark Amery, the company’s founder and CEO, had just moved into a home with a pool. He didn’t know the first thing about balancing chemicals, but with five kids, there was no room for guesswork.
He started calling around for help. Company after company didn’t answer, turned him away, or made it clear they weren’t interested. Finally, Mark came across a servicer who agreed to stop by on his way home from a camping trip. He arrived with one flip-flop on, ripped jean shorts, and a tank top. Mark recalls thinking, “Friendly guy but not exactly the picture of professionalism I expected for pool service.”
That was the lightbulb moment for Mark. If the market standard was unreliable and unprofessional, there had to be room for something better with dependable scheduling, trained techs, and a customer-first approach.
Puddle Pools launched in 2018 with a model built for scale from day one. Mandatory daily and weekly recurring service created predictable revenue and long-term relationships. The goal was to take a fragmented, inconsistent in-
dustry and bring it into the modern age with professional branding, reliable techs, and systems that could grow continually.
DIFFERENT AND SCALABLE
One of the first things you notice about Puddle Pools from an operational viewpoint is how straightforward it is to run. You can start with one tech and one truck, keep overhead low, and scale from there with very low initial risk.
Puddle Pools serves both residential and commercial clients, including homeowners, HOAs, apartment complexes, and hotels. The dual focus expands the brand’s customer base and provides stability across all market cycles.
Revenue is recurring on a weekly or bi-weekly basis, so franchisees aren’t constantly chasing new business. Because business runs year-round, the brand has a major advantage over seasonal service models.
On the support side, Puddle Pools has its own in-house marketing team and call center. Franchise owners are never asked to juggle customer calls or figure out advertising on their own. Instead, it’s all handled by a leadership team that’s been together for more than 13 years and has successfully launched four other home service brands, reinforcing their credibility.
The business model is highly flexible and can be managed entirely from a franchisee’s phone— no office space required. With the ability to run the business remotely while a technician handles the work, it’s an attractive option for executive and semi-absentee owners looking for a scalable, low-barrier investment.
In the U.S., when you think of a pool franchise, you immediately think of southern markets like California, Texas, Arizona, and Florida. However, remember that Puddle Pools started in Canada, where they made sure their franchise partners had
opportunities year-round. The farther north you go, the less competition, so northern franchisees are thriving as well.
GROWTH STRATEGY
Mark has been working in home services for years. He started and sold his own pest control company before meeting franchising legend Jim Treliving. That experience and exposure to franchising stuck with him, and when it came time to grow, he knew it was his next move.
Puddle Pools began franchising in Canada in 2023, closing the year with 13 territories. The following year, the brand entered the U.S. through Franchise FastLane’s CarPool program, which provided the structure and back-end support to refine its systems and scale quickly.
By the end of year two, it had grown to 39 territories, and as of February this year, it was already at 47. After recently transitioning to our more growth-centered FastLane program, the brand has kept momentum high while staying focused on supporting a strategically growing franchise system.
Our team at Franchise Fastlane has worked alongside the brand to grow intentionally, not senselessly, supporting everything from vetting candidates to navigating legal requirements and fine-tuning the development process. It’s a partnership that shows what’s possible when the right concept meets the right growth strategy.
Puddle Pools proves that even in industries that seem set in their ways, there’s room for a brand that does things better. Its personal origin story, proven systems, and simple yet scalable model have positioned the brand as a leader in an underserved market.
We look for brands with strong leadership, a clear vision, and the ability to grow without losing what makes them special. Puddle Pools checks every box. The future is bright, the markets are wide open, and the systems are ready for what’s ahead. We’re proud to be in the company’s corner as it makes waves in pool and spa care—one perfectly balanced pool at a time.
Tim Koch is president & COO at Franchise FastLane, the franchise sales organization for Puddle Pools.
Teresa Johnson
“There’s no manual or training required; we simply lead by example.”
Inspired by Franchisees Color Me Mine leader puts people first
Written by KERRY PIPES
TERESA JOHNSON CEO
Company: Color Me Mine
Units/Brands: 130-plus
Age: 59
Years in franchising: 15
Years in current position: 4
When Teresa Johnson talks about her role as CEO of Color Me Mine, she doesn’t start with numbers or market share. She starts with people. “My leadership is inspired by our franchisees,” she says. “They remind me daily that leadership is about service.”
It’s a perspective that comes naturally. Before taking the helm four years ago, Johnson spent more than 15 years as a multi-unit franchisee herself. She knows what it’s like to juggle staffing challenges, manage the daily grind of operations, and still find the energy to focus on growth. That lived experience colors the way she leads with empathy, collaboration, and a genuine respect for the people on the front lines of the brand.
When the pandemic hit, Johnson’s instincts were put to the test. Studios closed, uncertainty loomed, and the future felt unsure. Instead of standing still,
she and her team pivoted fast, rolling out at-home pottery kits, adding online ordering, and giving families ways to stay creative even in isolation. She leaned into transparency and decisive action, keeping franchisees informed and connected. The crisis confirmed what she already believed: Resilience and flexibility are lifelines of leadership.
Johnson’s approach is about empowerment, not micromanagement. She equips her team with tools and support and then steps aside, so they can shine. Her leadership bench blends seasoned franchise veterans with creative thinkers, a mix that keeps the brand grounded while pushing it forward. Together, they’ve invested in a new POS system, beefed up digital marketing, and integrated AI to help franchisees personalize outreach and streamline social media. For Johnson, success can be measured in adoption rates, efficiency gains, and healthy unit-level economics.
For Johnson, culture isn’t written in a handbook; it’s lived every day. “The way we treat each other and honor our franchisees is the culture,” she says. That respect cascades from the home office to studio teams and, ultimately, to the families painting pottery pieces together on a Saturday afternoon. The magic of Color Me Mine is as much about belonging as it is about art.
As she looks to scale, Johnson is determined to grow without losing the qualities that made the brand special in the first place. She says that every move from supply chain efficiencies to training programs is designed to strengthen franchisee success.
For her, the payoff isn’t just expansion. It’s hearing a franchisee talk about how Color Me Mine has impacted their life. She appreciates hearing parents share how painting together has become a family tradition. Those stories affirm why she leads. She’s not just building a bigger brand; she’s building a franchise family where creativity, opportunity, and connection come together with every brushstroke.
LEADERSHIP
What is your role as CEO? My role is to set the vision, remove barriers for our franchisees, and ensure that we’re building a culture of creativity, profitability, and belonging. I focus on growth strategies, franchisee support, and making sure Color Me Mine continues to be a relevant, inspiring brand for families and communities.
How has Covid-19 affected the way you have led your brand? Covid-19 reinforced that leadership requires flexibility and empathy. We pivoted quickly, launching at-home pottery kits, online ordering, and new ways for customers to stay creative at home. That period taught all of us the value of transparent communication and quick decision-making.
REIMAGINING FRANCHISE EXPOS
They can still be part of a multichannel recruitment strategy
Written by ANDREW SEID
The franchise expo booth stands ready with professionally designed banners, branded materials, and team members prepared with their best pitches. Yet as the doors open, the energy feels different from what it did a decade ago. Fewer prospects walk the aisles. Those who do often seem less committed, more distracted, and armed with information they’ve gathered online. For many franchisors, the return on investment from franchise sales expos has diminished, leading some to question whether these events belong in modern recruitment strategies.
Franchise sales expos are not what they once were. In an era when prospective franchisees can research opportunities from their living rooms, attend virtual discovery days, and connect directly with franchisors through social media, the urgency of in-person events has waned. The qualified, motivated prospects who once filled expo halls now represent a smaller, more selective audience. The cost per qualified lead has increased, and conversion rates have often declined.
However, dismissing franchise expos entirely would be a mistake. These events can serve valuable purposes when integrated thoughtfully into a broader, multichannel recruitment strategy. The key lies in recalibrating expectations and reimagining how to extract value from the expo experience.
MODERN EXPO ATTENDEES
Today’s franchise expo attendee differs from their predecessor. Nowadays, some are looking to start their discovery process and haven’t spent much time evaluating concepts. They have not made a list of targets to seek out. The other group has explored multiple concepts online before deciding to attend an event. Rather than browsing for inspiration, this group arrives with specific questions for brands.
This shift demands an evolution in how franchisors approach expos. The old playbook of casting wide nets and collecting business cards no longer delivers results. Franchisors must focus on quality interactions, strategic positioning, and creating memorable experiences that differentiate their brand.
EVENT PREPARATION
Success at franchise expos now begins weeks before the event. Franchisors should leverage the expo’s promotional channels to build awareness in advance. Many events provide attendee lists or promotional opportunities that allow exhibitors to reach prospects before they arrive. Smart franchisors send personalized invitations to targeted prospects in their pipeline, offering time slots for conversations.
This early outreach transforms the expo from cold lead generation into a relationship-building opportunity. When a prospect you’ve been nurturing through your digital marketing funnel agrees to meet, the conversation starts from a position of familiarity and trust rather than from scratch. The expo becomes a strategic touchpoint in an existing journey.
REDEFINING SUCCESS
If you’re attending an expo expecting to collect hundreds of leads and sign multiple franchise agreements, disappointment is likely. Alternative success metrics better reflect the modern expo’s role.
Prioritize relationship deepening over new lead volume. Meeting face-to-face with prospects in your pipeline can accelerate their decision-making process in ways that email and phone calls cannot. The personal connection, the ability to read body language, and the opportunity for extended conversation create momentum that justifies the investment.
Your professional presence, the quality of your booth design, and how your team presents itself all contribute to brand perception. Prospects who aren’t ready to commit may remember you months later. Competing franchisors and potential partners notice how you show up, creating networking opportunities beyond direct franchisee recruitment.
Conversations with prospects reveal valuable insights about concerns and objections, and they can reveal what competitors offer. Observing competitor booths and strategies provides intelligence that can refine your recruitment approach.
ON-SITE EFFECTIVENESS
Booth positioning and team training become critical. Rather than engaging everyone, empower your team to qualify prospects quickly and focus on meaningful conversations. Develop a tiered ap -
proach: brief interactions for casual browsers, midlength discussions for interested prospects, and extended, private conversations for serious candidates. Using tablets or apps to capture detailed prospect information, schedule follow-up calls, and immediately enter leads into your CRM ensures nothing falls through the cracks. Some franchisors use appointment-based models, blocking out their schedule for prearranged meetings while leaving room for walk-ups.
Going beyond the standard sales conversation sets you apart. Consider hosting small group presentations at your booth, offering refreshments that encourage prospects to linger, or providing valuable takeaway materials that prospects will use.
FOLLOW-UP
The expo represents one touchpoint. The days and weeks following determine whether the investment pays off. Immediate, personalized follow-up is essential. Every prospect you spoke with should receive customized communication within 48 hours, referencing your conversation and outlining next steps.
Segment your follow-up based on prospect readiness. Those showing serious interest might receive an invitation to a discovery day or a call with your franchise development team. Others might enter a nurture sequence with valuable content delivered over time. Even prospects who seemed unqualified deserve a professional follow-up that leaves the door open.
THE VERDICT
Franchise sales expos will never again be the recruitment powerhouse they were. Franchisors who approach them with outdated expectations will be frustrated. The real value is for franchisors who treat events as relationship accelerators, brand-building opportunities, and strategic touchpoints within a multichannel recruitment process.
Successful franchisors today don’t rely on expos to carry their recruitment efforts. They integrate expo participation within comprehensive programs that include digital marketing, content creation, social media engagement, and relationship nurturing. Within this context, expos can justify their place in your budget if you approach them with clear objectives, appropriate expectations, and a commitment to maximizing every opportunity.
Andrew Seid is senior consultant at MSA Worldwide. Contact him at aseid@msaworldwide.com or 860-604-9189.
Describe your leadership style: I’d describe it as people first and empowering. I believe in equipping my team with the tools they need and then stepping aside so that they can shine.
What has inspired your leadership style? My leadership has been shaped by my mentors, my own experiences as a multi-unit franchisee, and the success of those I serve. But most of all, it’s inspired by our franchisees themselves.
What is your biggest leadership challenge? Balancing big-picture strategy with the very real, day-to-day challenges of small business owners. Franchisees want both innovation and stability, and it’s my job to provide both.
How do you transmit your culture from your office to frontline employees? It starts with our home office team. There’s no manual or training required; we simply lead by example. When our franchisees experience that support and respect, they pass it along to their teams and guests.
How can a CEO help their CMO develop and grow? It starts with making sure they completely understand the business model, ideal customer, and franchisee needs. Then, they need space to be creative while ensuring they’re connected to the business strategy. A CMO thrives when they have permission to take risks but also the resources to measure and refine.
Where is the best place to prepare for leadership: an MBA school or OTJ? Both. The MBA gives structure; on-the-job experience teaches resilience and adaptability. For me, rolling up my sleeves in a pottery studio taught lessons that no classroom could.
Are tough decisions best taken by one person? How do you make tough decisions? Collaboration matters, but ultimately, the CEO carries the weight. I gather input, evaluate the risks, and then move decisively. Waffling is worse than a wrong decision.
Do you want to be liked or respected? Respected. But I believe if you lead with integrity and compassion, you can be both.
Advice to CEO wannabes: Learn your business inside and out. Surround yourself with smart people. And never underestimate the value of listening.
MANAGEMENT
Describe your management style: Collaborative, direct, and accountability driven. What does your management team look like? It’s a mix of seasoned franchise veterans and creative thinkers. We’ve got expertise in operations, marketing, technology, and supply chain. They are balanced with a strong field support team. How does your management team help you lead? They keep me grounded in what’s happening from day to day, and they challenge me to think differently. Together, we cover both tactical execution and long-term vision.
Favorite management gurus: Do you read management books? Yes. Jim Collins’ Good to Great, Simon Sinek’s Leaders Eat Last, and Matthew Kelly’s The Dream Manager have all been influential.
What makes you say, “Yes, now that’s why I do what I do!”? When I hear stories of families creating memories in our studios or when franchisees tell me this business has changed their lives. That’s the “why.”
OPERATIONS
What trends are you seeing with consumer spending habits in your stores? Families are prioritizing experiences over things. Even in tight economies, parents and grandparents invest in creative, memory-making activities.
How is the economy driving consumer behavior in your system? Rising costs mean guests want value. They want to know that a visit to one of our studios gives them more than just a product. It’s about connection and creativity.
What are you expecting from your market in the next 12 months? Continued steady demand for experiences, growth in kids’ events, and renewed interest in group and corporate gatherings.
Are your franchisees bullish or bearish about growth and adding additional units? Cautiously bullish. Many are reinvesting in remodels or second units because they see opportunity in their markets.
Are commodity/supply costs any cause for concern in your system? Sure. We have seen rising costs in supplies, and those costs are being passed on to consumers as with other markets. We continue to offset with scaled buying power and supply chain efficiencies.
In what ways are political/global issues impacting the market and your brand? Consumer confidence is sensitive to politics and global events, but our category, creative experiences, tends to be more resilient than others.
TECHNOLOGY
How much influence does your IT department have on your brand? Significant. Technology is no longer a back-office function; it’s core to our customer and franchisee experience.
How have your company’s tech tools changed over the past five years? We are launching our proprietary POS system before the end of 2025. We also have improved online booking and expanded digital marketing tools.
How does technology influence your decisions? Technology provides data, and data drives decisions from product mix to marketing spend to customer engagement.
Are you using AI? How? Yes. AI is helping us personalize marketing, forecast supply needs, and even assist franchisees in social media content creation.
How do you measure your ROI on technology investments? Adoption rates, time saved, improved guest experience, and sales growth.
How did/do you create a culture where use of technology advancements is welcome and used? By involving franchisees early, showing how it benefits them, and making training accessible. Change is easier when people feel ownership.
PERSONAL
What time do you like to be at your desk? I’m an early starter and usually at my desk by 7:30 a.m. Exercise in the morning? Wine with lunch? Exercise when I can and wine only after hours.
Do you socialize with your team after work/ outside the office? Occasionally. Since most of the team is remote, we can’t always get together. We make a point to have an all-team, in-person meeting annually.
Last two books read: Unreasonable Hospitality by Will Guidara and Outliers by Malcolm Gladwell. What technology do you take on the road? Laptop, phone, and plenty of portable chargers. How do you relax/balance life and work? Travel, time with family, and outdoor activities.
Favorite vacation destination(s): Europe and the Florida panhandle.
Favorite occasions to send employees notes: Birthdays and above-and-beyond moments.
Favorite company product/service: Our seasonal pottery collections. They keep the brand fresh and exciting for families year-round.
BOTTOM LINE
What are your long-term goals for the company? To continue growing worldwide, expand our digital tools, and ensure that Color Me Mine is always the go-to place for creative experiences.
How has the economy changed your goals for your company? It has reinforced the importance of resilience, diversification, and smart growth strategies.
Where can capital be found these days? Private equity, SBA loans, and reinvestment from successful franchisees.
How do you measure success? Through franchisee profitability, franchisee gross sales, franchisee equity value, and the strength of our culture.
What has been your greatest success? Seeing long-term franchisees thrive and celebrating anniversaries of 20-plus years. Longevity is the ultimate proof of concept.
Any regrets? Not really. Every challenge has shaped us. If anything, I’d say I wish I’d trusted my instincts sooner in some decisions. What can we expect from your company in the next 12 to 18 months? New studio openings, product innovation, enhanced digital marketing, and a continued focus on franchisee support and profitability. Grow to 300 units by 2030.
Jerry Pugh
“My job is to remove obstacles, so great people can do great work.”
“Heart and Backbone”
CEO builds the next era of Workout Anytime
Written by KERRY PIPES
JERRY PUGH
CEO
Company: Workout Anytime
Units: 190-plus
Age: 54
Years in Franchising: 8
Years in Current Position: Since 2024
For Jerry Pugh, leadership isn’t about titles or hierarchy. It’s about clarity, accountability, and the courage to make decisions that elevate everyone around him. As CEO and majority owner of Workout Anytime, Pugh is steering one of the nation’s fastest-growing fitness brands into its next chapter. The stakes are high in the $45 billion-plus fitness club industry.
Pugh’s journey to the corner office is rooted in experience on the front lines. Before becoming CEO, he led one of Workout Anytime’s most successful multi-unit franchise groups, earning the Franchisee of the Year title four times. He knows firsthand what franchisees need to succeed and how corporate decisions ripple through an entire system. “I see myself as both the vision setter and the accountability partner for our system,” he says. “My job is to remove obstacles, so great people can do great work.”
That people-first mindset was tested during the pandemic. “The pandemic forced every leader to lead with empathy and clarity,” Pugh recalls. “It reminded me that relationships and communication are everything.” Under his leadership, Workout Anytime emerged more mission driven, adaptable, and focused on what members value most: health as a lifestyle, not a luxury.
Pugh leads with a blend of entrepreneurial spirit and operational discipline. He describes his challenge as “balancing speed with scalability.” One of his long-term goals is to grow from 200 to 400 locations. “Growth without structure is chaos,” he says. He wants to preserve the brand’s entrepreneurial spirit while building the strong systems needed to sustain it.
Culture, he insists, “can’t be emailed. It has to be modeled.” That’s why the brand prioritizes clear communication, consistent standards, and leading by example at every level from corporate teams to club managers. Field support and brand standards are key to bringing that culture to life.
Pugh says he believes in impact. “When I see franchisees thriving, adding clubs, and changing lives in their communities,” he says, “that’s the ultimate ROI for any franchisor.”
LEADERSHIP
What is your role as CEO? As CEO of Workout Anytime, my role is to set the strategic direction for our brand, build alignment between the franchisor and franchisee network, and ensure we deliver consistent value to our members. It’s about driving growth while never losing sight of the operators who make our brand great.
How has Covid-19 affected the way you have led your brand? We had to make quick, tough calls to support franchisees, pivot in marketing, and rethink how we deliver fitness. It strengthened our resolve to be a brand built for real people. We’re resilient, local, and mission driven.
Describe your leadership style: I lead with transparency, accountability, and purpose. I believe in empowering others through clarity, not control. I’ve been inspired by my time in the trenches as a multi-unit franchisee before becoming CEO. Working side by side with my teams taught me what leadership really looks like: listening first, acting decisively, and never asking anyone to do something you wouldn’t do yourself.
What has inspired your leadership style? Balancing speed with scalability. Growth without structure is chaos. My challenge is to maintain our entrepreneurial spirit while ensuring we have systems strong enough to support 400-plus clubs.
How do you transmit your culture from your office to frontline employees? We focus on communication, consistent standards, and leading by example from corporate teams to club managers. Our field support and brand standards teams play big roles in carrying that culture forward every day. How can a CEO help their CMO develop and grow? By giving them space to lead and the data to make smart decisions. I believe in collaboration between marketing and operations, ensuring our CMO’s creativity is anchored in measurable impact.
Where is the best place to prepare for leadership: an MBA school or OTJ? There’s no substitute for being on the floor and on the job. Leadership is learned through people, pressure, and performance. School teaches strategy; the field teaches judgment.
Are tough decisions best taken by one person? How do you make tough decisions? The decision may rest with one person, but the input should never come from one. I surround myself with strong leaders, listen hard, weigh the data, and then move quickly. Once the call is made, I stand by it.
Do you want to be liked or respected? Respected. Leadership isn’t a popularity contest. I value being fair and consistent even when the answer isn’t easy.
Advice to CEO wannabes: Earn trust before you seek a title. Be obsessed with results, but never forget that business is built on relationships. And when the time comes, lead with both heart and backbone.
MANAGEMENT
Describe your management style: Hands-on but not heavy-handed. I set clear expectations and then empower my leaders to deliver results their way. Accountability and trust go hand in hand. What does your management team look like? We have an experienced executive team spanning finance, operations, administration, and brand standards. Each brings deep franchise experience and a shared commitment to our mission of helping people reach their fitness goals through accessible, convenient clubs.
How does your management team help you lead? They give me truth without filters. We challenge each other, align quickly, and keep franchisee success at the center of every discussion.
Favorite management gurus: Do you read management books? I’m a fan of Jim Collins’ Good to Great and Patrick Lencioni’s The Advantage. Both reinforce that clarity, discipline, and culture separate good companies from lasting ones.
OPERATIONS
What trends are you seeing with consumer spending habits in your stores? Members are more selective but willing to invest in quality and convenience. We’ve seen growth in premium memberships and wellness amenities such as red light therapy and hydromassage. It’s proof that people value health as a lifestyle, not a luxury.
How is the economy driving consumer behavior in your system? Economic pressure has made consumers prioritize value and experience. Our 24/7 model, affordable tiers, and strong community connection position us well.
What are you expecting from your market in the next 12 months? We expect continued momentum in fitness and wellness spending, especially in smaller and mid-size markets. Our expansion strategy is built around communities where big-box brands can’t connect like we can.
Are commodity/supply costs any cause for concern in your system? We've leveraged scale and vendor partnerships to stabilize pricing. Our equipment and flooring contracts have been restructured to protect franchisees’ bottom lines.
In what ways are political/global issues impacting the market and your brand? Economic uncertainty always filters down to the franchise level, but fitness remains a resilient category. People don’t stop caring about their health, and we make it accessible regardless of what’s happening globally.
TECHNOLOGY
How much influence does your IT department have on your brand? Technology drives nearly every part of our business from member experience to performance analytics. Our IT team ensures we’re equipped to make data-driven decisions at every level.
How have your company’s tech tools changed over the past five years? We’ve evolved from basic systems to integrated platforms that track KPIs, retention, and member engagement across the network. The focus is on actionable data, not just dashboards.
How does technology influence your decisions? It informs everything from site selection to marketing. Data helps us replace opinion with insight, leading to better franchisee outcomes.
Are you using AI? How? Yes, primarily in predictive analytics and member engagement tools. We’re using AI to identify at-risk members, optimize marketing campaigns, and streamline support responses to franchisees.
How do you measure your ROI on technology investments? By tracking adoption, impact, and efficiency. Every tool must save time, reduce cost, or grow revenue. If it doesn’t, we pivot.
How did/do you create a culture where use of technology advancements is welcome and used? We make it practical, not theoretical. When franchisees and staff see technology improving real outcomes (member growth, lead response time, and profitability), adoption follows naturally.
PERSONAL
What time do you like to be at your desk? If I’m working from home, I’m at my desk by 8 a.m. and usually on calls even earlier. When I’m in the office, I’m typically at my desk by 9 a.m.
Exercise in the morning? Wine with lunch? No. I exercise in the evening. Wine with lunch? Never. I need a clear head to lead.
Do you socialize with your team after work/ outside the office? Occasionally. I believe relationships matter, but boundaries help keep respect intact. Last two books read: Dare to Lead by Brené Brown and No Rules Rules by Reed Hastings. What technology do you take on the road? Just my laptop and iPhone. That’s all I need to stay connected and get work done from anywhere.
How do you relax/balance life and work? Time with family, travel, and unplugging when I can. I’ve learned that leadership endurance depends on personal balance.
Favorite vacation destination(s): The Florida Keys. Close enough to escape, far enough to reset. Favorite occasions to send employees notes: After a big win or when they’ve stepped up in a tough situation. Recognition matters most when it’s earned, not expected.
Favorite company product/service: Our Premium Suites. They capture what our brand stands for: accessible luxury and high-value wellness.
BOTTOM LINE
What are your long-term goals for the company? To grow Workout Anytime from 200 to 400 locations while deepening our franchisee support and enhancing brand standards. Sustainable, scalable growth is our North Star.
How has the economy changed your goals for your company? It’s made us sharper. We’ve streamlined operations, focused on ROI-driven initiatives, and doubled down on technology and support systems that strengthen unit-level economics. Where can capital be found these days? Smart capital follows performance. With our model and consistent returns, we continue to attract lenders and partners who see the value of our growth trajectory. How do you measure success? When franchisees are profitable, members are satisfied, and our brand equity is growing. That’s success. It’s the alignment of purpose and performance.
What has been your greatest success? Transforming from the largest franchisee to the CEO and majority owner of the entire Workout Anytime system. It’s proof of what’s possible when you believe in the brand you serve.
Any regrets? Only that I didn’t start sooner. Every challenge has been a lesson, and those lessons have built the leader I am today.
What can we expect from your company in the next 12 to 18 months? Major growth, new franchise openings, expanded corporate locations, and the rollout of our next-generation technology and member-experience platform. We’re building the next era of Workout Anytime. We’re bigger, smarter, and stronger together.
“Franchise Means Local” New campaign focuses on stories that matter
Written by MATT HALLER
When people hear the word “franchise,” a majority still picture big fast-food chains, corporate headquarters, or impersonal national brands. Those of us in franchising know how far that is from the truth. It’s an image that we need to replace. With the launch of IFA’s “Franchise Means Local” campaign this fall, we have a unique opportunity to reframe how the public, policymakers, and media see franchising. We’re investing in telling the stories of local franchisees who are making a difference in their communities every day.
Facts and data matter—no question. Franchised businesses employ nearly 9 million Americans and generate hundreds of billions in economic output. It’s an impressive impact that reinforces the power of the franchise model on a national scale. But numbers alone don’t move hearts or cut through assumptions or biases—storytelling does.
When we share real stories of franchise owners (people in your community, your neighbor, a local veteran, a female entrepreneur, someone who grew up in your town), we allow audiences to see themselves in those narratives. They stop seeing a franchise as a faceless brand and start seeing real people
making meaningful contributions. That shift in perception is the core goal of the campaign. To see the first videos, visit www.franchise.org and search for “Franchise Means Local.”
One of the powers of local narratives is that they anchor franchising not in abstraction, but in place. A franchise is not just a name on a storefront. It’s someone’s livelihood, someone’s property taxes, someone’s charitable giving, and someone’s job for a neighbor. This campaign highlights how franchise owners invest in their communities by sponsoring local events, hiring and sourcing locally, supporting nonprofits, and returning their profits to the areas that raised them.
When we position franchising as inherently local, we reclaim the narrative. We say, “Yes, franchises have a familiar brand, but that doesn’t erase the fact that each location is a small business run by individuals who live, lead, and care where they operate.”
One of the biggest myths we face is that franchising equals big business. That misconception is damaging not only for public perception, but also for policymaking. If legislators think we’re
just corporate giants, they may be more comfortable subjecting franchise businesses to unfair rules such as blanket regulation without nuance or understanding. That’s why we must replace myth with narrative, focusing on the real-life stories of small business owners in communities across America.
As IFA has sought to take advantage of the political climate to go on offense to protect the business, this campaign is another tool to tell our stories to those who need to hear them most. Franchise operators are real people, and decisions made in Washington, D.C., or their state capitals can make or break their businesses. Whether the “Franchise Means Local” campaign is delivered to elected officials at any level of government, customers in your hometown, or even skeptics of a brand at scale, this awareness push is designed to give voice and visibility to the authentic local impact of franchise owners. It lets us shape the narrative on terms that resonate broadly.
“Franchise Means Local” isn’t just a slogan. It’s a call to change how we depict the franchise model. It’s also what we want others to understand about the model’s power and the people behind the business. This is only the beginning of our storytelling efforts, and we want every person in franchising to spread the message that behind every brand name is a person, a family, and a community. And when people understand that, perceptions change. Let’s remind America that “Franchise Means Local.”
Matt Haller is president and CEO of the International Franchise Association.
FROM VISION TO REALITY
The story behind Morrow Hill’s occupier services
Written by JONATHAN HILL
When Chris Morrow and I started Morrow Hill, our focus was simple: real estate. We built our reputation on helping franchise brands find the right locations to grow. But over time, I noticed a pattern. I’d sit across from a new franchisee who had just signed a lease, and almost every time, the same question would come up: “What happens now?”
That question stuck with me. Signing the lease was just one part of the journey, and what followed—space planning, permitting, coordinating contractors—was often more overwhelming than finding the site itself. Franchisees were left to piece together a dozen moving parts on their own. For many, it meant delays, blown budgets, and a stressful start.
Franchisors felt it, too. They wanted their brands to expand smoothly, but without a single partner to manage the process, consistency and predictability were hard to achieve. One late opening or poorly executed build-out could damage credibility and momentum.
We knew there had to be a better way. That’s why we created Occupier Services, not as a new revenue stream, but as a solution to a problem we’d seen over and over again. Our goal was to take franchisees from lease signing to opening day with one team, one process, and one vision.
Occupier Services begins with our Hyper Intelligent Site Evaluation using Matterport® technology. We visit the location, take detailed measurements, analyze feasibility, review local codes, and provide a full site evaluation report. Then we move into Space Planning, creating layouts that balance brand standards with the unique needs of each location. Finally, we oversee Project Management, using our Vision Track® platform to handle timelines, budgets, and vendor coordination from start to finish.
It’s not just about managing tasks. It’s about giving franchisors peace of mind and giving franchisees the confidence that their opening will be on time and on budget.
We built this service by listening—to franchisors who wanted consistency, to franchisees who were overwhelmed, and to our own instincts that there had to be a better way.
We’ve always believed real estate is just the beginning. Occupier Services ensures what happens next is just as strong as the transaction itself.
Jonathan Hill is co-founder of Morrow Hill.
Franchise leaders tell their stories to Congress at IFA’s 2025 Advocacy Summit
Written by KERRY PIPES
When more than 400 franchisees, franchisors, and suppliers gathered in Washington, D.C., this September for the International Franchise Association’s (IFA) 2025 Advocacy Summit, the energy was palpable. The three-day event at the Hilton Washington DC National Mall The Wharf wasn’t just another conference; it was a rallying cry for the future of franchising.
At its core, the Summit highlighted a simple truth: If the franchise community doesn’t tell its story to policymakers, how will government leaders ever understand the business? With the newly introduced American Franchise Act (AFA), a bipartisan bill designed to codify the joint-employer standard, on the table, the stakes have never been higher.
IFA Chair Mary Kennedy Thompson set the tone in her welcome remarks: “Power is not power if you don’t know you have the power. Franchising is a powerful constituency and the voice on Main Street.”
The duality of franchising as both entrepreneurial grit and national economic engine echoed throughout the event. From small franchise owners to multi-unit operators, attendees carried a unified message that franchising provides a proven path to the American Dream. But without regulatory clarity, especially around the joint-employer rule, that path is threatened.
The AFA represents stability. With seven Democrats and seven Republicans signing on at the bill’s introduction, the bipartisan bill aims to put an end to the regulatory ping-pong that has plagued the industry for the past decade. As Thompson reminded the audience, uncertainty is the real enemy: “The thing that hurts business the most is not bad news but the unknown. We want them to quit changing the rules.”
The Summit blended policy discussions with personal narratives in an intentional strategy to help attendees sharpen their message before heading to Capitol Hill to meet with their elected officials on the last day of the event.
One of the first to speak to attendees was Scott Jennings, a CNN commentator and longtime political strategist. He began by addressing the Charlie Kirk assassination, noting that Kirk was “about building, not tearing down,” and then cautioned that the West’s norms of free speech, civil discourse, and open debate are under attack. Jennings framed Kirk’s assassination as a stark reminder that America was founded on speaking and debating. He said recommitting to those principles is essential now more than ever.
Jennings then turned to the matter of advocacy and the AFA, noting the important role of franchising in America. “Franchising is part of everyday life. It combines the strength of national brands with the sweat equity of local owners. That independence deserves protection,” he said in reference to the AFA as a critical way to restore stability.
Jennings also gave practical advice: Lawmakers respond to personal stories. “When people describe their business and what they do, politicians want to know,” he said. “They place a lot of value on your opinion. Walk tall, be confident, because you all carry a big stick.”
A gathering momentum and excitement for the AFA carried through every session. IFA President & CEO Matt Haller delivered a progress report on the association’s 2025 Roadmap for Franchise Growth, which includes codifying a joint-employer standard that protects franchisee independence, preserving a pro-franchisee tax code achieved earlier this year, and stopping burdensome regulation. He cued up a new video created to demonstrate the importance of franchising and why it needs protection.
Day 2
The second day of the summit kicked off with a keynote by U.S. Secretary of Labor Lori ChavezDeRemer. She underscored her commitment to fighting for the American worker and explained how the Department of Labor is providing clarity and consistency for both employers and employees by issuing guidance and removing restrictions that harm businesses. She outlined priorities such as eliminating taxes on tips and overtime, making estate tax exemptions permanent, increasing the child tax credit, and leveraging tariffs to create more opportunities for American businesses. She also emphasized the importance of expanding apprenticeships and trade jobs as part of her vision to strengthen the workforce beyond traditional four-year college pathways. Ultimately, she said, her goal is to position the U.S. as the dominant global economic leader, reminding attendees that “the Department of Labor has your back.”
Next, IFA’s Erica Farage, senior vice president, advocacy and political affairs, interviewed Kevin Yoder, former U.S. congressman from Kansas and
now with Venture Government Strategies, a consulting and advocacy firm. She asked what attendees need to know before meeting with members of Congress and their staff. While highlighting the new AFA, he stressed punctuality and clear introductions when explaining the joint-employer rule to lawmakers.
“Don’t assume they are tracking the jointemployer rule. Explain how the rule impacts business. Mention the AFA that was just introduced last week,” he said. Yoder noted that many meetings will be with staffers, who are influential, so attendees should collect cards and follow up promptly. He encouraged ongoing engagement by thanking lawmakers, inviting them to visit businesses, and building lasting relationships beyond Washington.
In a “fireside chat,” Haider Murtaza, IFA’s senior director, federal government relations, spoke with Reps. Hillary Scholten, D-Mich., and Don Davis, D-N.C., about Democratic priorities and franchising’s role in shaping policy.
Scholten emphasized the need for a clear, consistent joint-employer standard, calling it common sense. She outlined Democratic goals such as reclaiming congressional authority over tariffs, pursuing permitting reform, and advancing immigration policies that balance border security with pathways to opportunity. She stressed her pragmatic, constituent-first approach and the importance of bipartisan problem-solving.
Davis, the first Democrat to co-sponsor the AFA, highlighted the central role franchises play in rural America, describing them as vital gathering spaces that strengthen communities. “Bojangles is just as powerful as a good golf course,” he quipped. On bipartisan cooperation, Davis pointed to progress in areas like defense, cryptocurrency regulation, and the Farm Bill.
Both leaders agreed that the AFA is essential to creating stability for franchise owners nationwide.
The next speaker was Kelly Loeffler, Small Business Administration (SBA) administrator, who has deep roots in small business. She noted her background on a five-generation family farm and in her father’s trucking company. She described her approach as getting government out of the way so that entrepreneurs can thrive. A key early move was reinstating the SBA’s franchise directory within her first 100 days. She called the resource essential for banks and franchisees, adding that it has already led to more loans and streamlined access to SBA programs like the 504 loan. Loeffler also highlighted efforts to restore lending standards to stabilize the system, roll out the upcoming Made in America Finance Act, and provide a supplier list to strengthen domestic business. On tax policy, she has supported restoring expiring provisions like the 199A pass-through deduction and bonus depreciation to give businesses predictability. Looking ahead, she pointed to workforce challenges as the biggest issue
facing Main Street. She assured attendees that this administration is listening and actively supporting small businesses.
Kansas Senator Roger Marshall sat for a candid Q&A with IFA Chief Advocacy Officer Michael Layman. A Republican, Marshall underscored his deep support for franchising, calling it a $9 billion driver of Kansas’ GDP and a proven pathway to the American Dream, particularly for veterans, women, and minorities. On the pressing issue of the joint-employer standard, Marshall highlighted the instability caused by frequent changes across administrations and courts, saying the AFA is essential to create certainty. He urged attendees to “make the sell” on Capitol Hill by sharing their personal stories with lawmakers. “Don’t walk out tomorrow without getting the commitment to co-sponsor this bill,” he said. “No bill will get to the finish line without bipartisan support.”
Marshall also spoke about the broader probusiness legislative agenda, describing potential reforms, including expanded tax write-offs, doubled estate tax limits, and bonus depreciation, saying they could be highly consequential for small business owners. Turning to the Senate outlook, he noted looming budget battles and the need for a balanced approach to keep the government open. Finally, Marshall addressed workforce shortages, rising healthcare costs, and his push for a Transparency Bill to reduce medical expenses, reinforcing his focus on practical solutions for small business owners.
Codie Sanchez, co-owner of ResiBrands, a multi-platform franchise, and founder and CEO of Contrarian Thinking, wrapped up the day with a Q&A led by Haller. Sanchez highlighted franchising’s power to boost business success, noting it offers a stronger path than going solo. She emphasized the industry’s collective strength, saying
franchising thrives when owners work together to support the many, not just the one. Sanchez stressed culture over systems, encouraging transparency, collaboration, and resilience. On the topic of advocacy, she urged franchisees to share emotional, personal stories with lawmakers to make an impact. “Bring them a picture,” she said. “Tell them your story. Tell a story about someone who found success in franchising.”
Day 3
On the morning of the final day before attendees headed to Capitol Hill, they got one more round of advocacy pointers, beginning with U.S. Rep. Kevin Hern, R-Okla., who has been a successful McDonald’s franchisee. He shared his personal journey from operating restaurants in Arkansas and Oklahoma to serving in Congress. Drawing on his experience, he stressed that many lawmakers debate issues they don’t fully understand, making it critical for franchisees to tell their own stories.
Hern, who had just introduced the AFA in the House the previous week, highlighted the bill as a historic opportunity to finally codify the franchisorfranchisee relationship and provide lasting clarity. He urged unity across franchising, noting that a bipartisan approach strengthens the entire industry. “No matter what brand you are with,” he said, “we should all pull on the same rope. It’s good for the industry overall.”
Beyond the speeches and fireside chats, the Summit prepared attendees for the real work: walking the halls of Congress. Advocacy experts coached franchise leaders on how to introduce themselves, frame their stories, and follow up with staffers who often drive legislative priorities.
Franchising is an industry that represents 3% of U.S. GDP and employs millions, but it often flies under the radar in policy debates. That’s why the annual Advocacy Summit is critical. It creates a visible, vocal reminder on Capitol Hill that franchising is more than logos and storefronts. It’s local ownership, job creation, and generational opportunity.
The passage of the AFA could secure the future of that opportunity by locking in a predictable regulatory environment. For franchisees, that means more training, growth, and freedom to operate as true independent businesses. For franchisors, it means stability to invest in innovation and brand building.
As attendees fanned out across the Capitol for meetings with their representatives, the message was clear: Franchising doesn’t just want a seat at the table; it deserves it. The Summit was about defending the model and affirming its role as one of the most accessible and resilient pathways to the American Dream. Or as Thompson put it, “We’re here to win, protect, promote, and enhance franchising. It matters what we’re doing. And it matters that our voices are heard.”
Multi-Unit Franchisee
Rob Branca on Advocacy, Bipartisanship, and the Local Face of Franchising
Written by KERRY PIPES
When franchisees from across the country gathered in Washington, D.C., for the 2025 IFA Advocacy Summit in mid-September, there was a mood of determination buoyed by optimism. Among those leading the charge was Rob Branca, a longtime multi-unit, multistate Dunkin’ franchisee and IFA board member. He has been a consistent voice for the industry on Capitol Hill.
For Branca, this year’s Summit reinforced a central truth: Effective advocacy is less about one big meeting and more about persistence. “It requires repetition and persistence to succeed at advocacy,” he says. “Even though we may have a good meeting, it doesn’t mean whatever bill you’re working on will pass.”
Few issues have impacted the franchise landscape more over the past decade than the joint-employer standard. With the rule changing four times in ten years, Branca argues that small business owners have been left without the stability they need to operate confidently.
“You can’t coach your franchisees on the best way to comply if you don’t know what the rule is,” he says. For him, codifying a permanent standard is not just about protecting franchisors and franchisees; it’s about creating clarity for everyone in the ecosystem, including employees, suppliers, contractors, and customers. “Make the rule permanent, and we’ll follow it,” he says.
One of the things that stood out at this year’s Summit, Branca notes, was a refreshing spirit of working together across party lines.
“Members of Congress understand that people want bipartisanship,” he says. The American Franchise Act’s (AFA) bipartisan support was a clear highlight, proving that when partisanship is stripped away, policymakers can focus on the substance of legislation.
“It was nice to be able to thank both sides of the aisle for their efforts on behalf of franchising,” Branca says of the group’s time on the Hill. He believes that continued bipartisan engagement is critical to the future of the industry.
Branca says much of advocacy boils down to education and often reeducation. With frequent turnover in Washington, new members of Congress and their staff members must continually be introduced to the fundamentals of franchising.
“Most members of Congress don’t understand franchising,” Branca says. “And even after we explain it, new people come in, and we need to explain it again. It’s a continuing education process.”
That education also involves dispelling a common misconception that franchisees are simply extensions of massive corporations.
“We’re not part of a big publicly traded McDonald’s corporation,” Branca says. “We’re a small business owner in our town. We support our Little League, donate to the food bank, and run a family business.”
Branca says that one of the most effective strategies to help cut through the barriers is putting a local face on the issues. That’s why, he says, franchisees should invite their lawmakers to visit their locations, meet employees, and see firsthand what it takes to run the business.
“It’s very impactful for them,” he says. “Members of Congress want to hear from the person in their district, the local taxpayer, the local employer, the local philanthropist. You’re putting a face to the name of the local business. It’s not Dunkin’; it’s Rob and his family business.”
Beyond his own role, Branca finds joy in watching first-time attendees at the Summit catch what he calls “Potomac Fever.” Seeing new advocates realize they can walk into public buildings and speak directly with their lawmakers, he says, is both inspiring and vital to sustaining the movement.
He also praised the IFA for its leadership in organizing the Summit. But, he says, the event is only the beginning. “There’s more that can be done—and is being done—throughout the year,” he says.
Branca says advocacy is never a one-and-done effort. It’s about persistence, personal engagement, and ensuring that policymakers understand the unique role of franchisees as local business owners.
Without that constant effort, he warned, franchising risks being swept into broad legislation designed for giant corporations. “If we don’t explain how a piece of legislation will affect us, then no one else will do it for us,” he says. “It’s incumbent upon us to do it.”
At the 2025 IFA Advocacy Summit, Branca and hundreds of others once again made sure franchising had a voice on Capitol Hill. It’s the sound of a voice rooted in local communities but amplified through collective, bipartisan advocacy.
How do you balance corporate-level campaigns with franchisee-driven, grassroots marketing efforts?
ERIN WALTER
Chief Marketing Officer
Freddy’s Frozen Custard & Steakburgers
Balancing corporate-level marketing campaigns with local initiatives isn’t about dividing responsibilities. It’s about alignment to achieve a shared goal of delivering the same, welcoming guest experience across every restaurant. While our national team sets the brand vision and creative direction, our franchisees are truly the heartbeat of the story. They know their communities best to build upon the local relationships and connections that make Freddy’s feel personal. When we stay in sync by communicating openly and sharing a consistent message, we’re able to bring the Freddy’s story to life across every market we serve.
Playing a critical role in finding this balance is our director of local store marketing, who serves as the bridge between franchisees and named agencies of record to ensure the plans and strategies align so that local efforts properly complement national campaigns. This structure allows operators to understand how national campaigns can be localized, and vice versa, while continuously driving restaurant-level results.
A key component as we work to maintain strategic alignment is the marketing spend across our franchisees. Our team reviews franchisee marketing budgets on a quarterly basis, sharing guidance on optimizing spend. Starting next year, we’ll go even deeper by reviewing each franchisee’s marketing spend through regular consultative visits. The goal behind this is to give us a more meaningful, faceto-face conversation about local opportunities and return on investment.
Looking ahead to 2026, we’re exploring platforms that can streamline the media-buying process for franchisees. This aims to help our local owners activate high-quality initiatives efficiently, maintaining consistency with our brand’s voice without losing that local hometown touch.
From an agency standpoint, we build our nationallevel campaigns with local activation in mind. When we develop creative spots, such as our recent “This is the Good Stuff” campaign, we intentionally leave room for our local agencies to complement the storytelling. That flexibility keeps our brand’s experience cohesive yet authentic to each market.
Successful and effective marketing campaigns from the corporate team to our franchisees require constant communication to keep us all connected. We regularly share our marketing strategies through quarterly local store marketing calls. This is where we exchange best practices, highlight success stories, and collaborate on upcoming initiatives. These conversations build trust and transparency, empowering franchisees to feel invested in both the process and the outcome.
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In franchising, the real magic happens when global branding meets local storytelling.
In franchising, the real magic happens when global branding meets local storytelling. At Shoot 360, one of my top priorities is building that balance by pairing the power of a unified worldwide brand with the authenticity of franchisee-driven, grassroots marketing.
With fewer than 100 locations right now but hypergrowth on the horizon, hyperlocal isn’t just important. It’s essential. Every country, city, and community has its own voice, and our role at the corporate level is to create the framework and resources that empower franchisees to connect authentically in their markets.
That work starts with a strong brand strategy. At the global level, we are building a marketing ecosystem to support the key areas of brand, attraction, conversion, and partners. This foundation ensures that everything we create (national campaigns, partnering with NBA and WNBA athletes, and social media posts) carries the same brand promise while equipping franchisees with tools they can use locally.
One of the most important initiatives we’re building inside that marketing ecosystem blends the power of digital with the impact of grassroots. On the digital side, we’re developing platforms to help franchisees strengthen their presence across social media, SEO, business listings, and reviews, giving them the visibility today’s customers expect.
At the same time, we’re investing in grassroots support, equipping franchisees with playbooks and field guidance to engage directly with schools, clubs, and community organizations. When these two forces work together, franchisees benefit from the scale and professionalism of a franchise brand and the authenticity of a local business deeply rooted in its community.
Every franchisee should benefit from the scale and professionalism of global campaigns while still telling stories that resonate on a local level. By blending corporate resources with communitydriven energy, we’re building a marketing system that ensures Shoot 360 feels both powerful and personal everywhere we show up.
Our goal is to build a franchise system where every location has the tools and support to succeed so that everyone gets a shot to grow, compete, and be part of something bigger.
Chief Marketing Officer
JAMIE ESLINGER
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We build national campaigns that grow brand recognition, and those campaigns are adapted and used locally so that clubs can connect with their local audiences.
KRISTINE FAUPEL
VP of Marketing
Ace Pickleball Club
Our approach to marketing at Ace Pickleball Club is all about collaboration and teamwork. We build national campaigns that grow brand recognition, and those campaigns are adapted and used locally so that clubs can connect with their local audiences.
At the corporate level, we focus on the big national picture. That means building awareness, driving credibility, and forming partnerships that put us in front of the right audiences. A great example is the recent addition of DoorDash as a title sponsor of our National Championship Series. This will allow us to bring tangible value to our members and improve the experience at our clubs with exclusive perks, like food and gear delivered straight to their local club.
The series has been a huge success story for us. It gives members a chance to compete locally throughout the year with the top qualifiers facing off at the national championship for a share of a $250,000 prize pool. It’s helping position Ace Pickleball Club as a true player in the athletic space, not just a place to play recreationally. The series has created an incredible sense of community, competition, and pride for our members.
We also give our franchisees the power to bring that same energy to their local markets. We provide creative templates, marketing playbooks, and national assets that they can adapt for local events. We make sure they have the flexibility to market in ways that feel authentic to their audience.
The secret is communication and alignment. We share ideas and feedback constantly so that everyone feels supported and connected to the bigger vision. National campaigns build momentum, and local owners turn that energy into personal relationships with members.
Ultimately, our goal is to keep Ace Pickleball Club growing nationally across strategic markets in a way that still feels neighborhood driven.
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Ready to take your franchise to the next level? Contact us today and let’s discuss how Gbbis can help you achieve your goals.
I’ve never thought about corporate versus franchisee marketing as an ‘either/or.’ It’s not a competition; it’s a partnership, just like everything in franchising.
ASHLEY MITCHELL
Chief Marketing Officer
ZorAbility
VP of Marketing
East Coast Wings + Grill
Chief Marketing Officer
Sammy’s Sliders
I’ve never thought about corporate versus franchisee marketing as an “either/or.” It’s not a competition; it’s a partnership, just like everything in franchising. Both matter, and when you get them working together, that’s when the real magic happens.
Brand campaigns are the megaphone. They give the brand consistency, scale, and credibility. Big initiatives, including national media buys, digital pushes, and seasonal promotions, set the tone and create that umbrella of awareness. Guests see the brand as something familiar and trusted before they even walk through the doors. Without that baseline recognition, local marketing must work ten times harder.
But grassroots? That’s where the brand feels real. Franchisees live in their communities. They know which school needs a fundraiser, which team plays on Friday nights, and where people gather on weekends. When they sponsor the Little League, host a spirit night, or show up at the community festival, it creates a personal connection no brand campaign could ever replicate. That’s how loyalty gets built. It’s not just transactions, but relationships. People buy from people, not logos.
The key is alignment. The franchise support team must make it easy for franchisees to plug into the big picture without losing their local voice. That means creating flexible tool kits, simple-to-use assets, and
clear brand guardrails so that franchisees can execute quickly but still stay on brand. For example, we might launch a system-wide campaign around a new initiative, but we’ll also hand franchisees readyto-use social ideas, outreach tools, and in-store assets so that they can bring it to life in their markets. And here’s the piece a lot of brands miss: listening. Franchisees are closest to the guest. Their insights—what’s hitting and what’s missing—are gold. I remind our East Coast Wings + Grill franchisees all the time: We’ll never know their market as well as they do. The flow of information has to go both ways. The more they share about their community, the better we can support them with tools and strategies that actually work. We marry our team’s marketing expertise with their local knowledge to create the recipe that fits.
It’s not about drawing hard lines between “corporate” and “franchisee.” Brand campaigns light the spark, and franchisee marketing fans the flame. That balance is what turns a brand into a community staple and drives real growth.
The SL Franchise Group Advantage
The SL Franchise Group Advantage
Finding the right team of franchise professionals to help ensure the success of your organization can be a challenge. Supported by the strength and resources of a national professional services firm, SL Franchise Group provides our clients with a full suite of franchise consulting solutions to develop, manage and grow their enterprise – all in one place.
Finding the right team of franchise professionals to help ensure the success of your organization can be a challenge. Supported by the strength and resources of a national professional services firm, SL Franchise Group provides our clients with a full suite of franchise consulting solutions to develop, manage and grow their enterprise – all in one place.
Your True & Trusted Strategic Partner
Your True & Trusted Strategic Partner
SL Franchise Group offers the most experienced and accomplished franchise consultants and advisors in the industry. Our prominent in-house team of franchise strategists, marketing, sales, and operations leaders work directly with you to build and grow your franchise system.
SL Franchise Group offers the most experienced and accomplished franchise consultants and advisors in the industry. Our prominent in-house team of franchise strategists, marketing, sales, and operations leaders work directly with you to build and grow your franchise system.
Atlanta
Atlanta
3565 Piedmont Rd NE (678) 456-5157
3565 Piedmont Rd NE (678) 456-5157
Los
Los Angeles
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“Emotionally Unforgettable”
Take 5 Oil Change CMO trusts the customers and the numbers
Written by KERRY PIPES
At a time when brand loyalty can vanish with a single click, few marketing leaders have consistently cracked the code on building emotional resonance and measurable results quite like Take 5 Oil Change CMO Doug Zarkin. With more than two decades of retail marketing experience, Zarkin has brought a blend of creative intuition and operational discipline to each brand he’s touched. Sure, he’s a marketer, but he’s also a brand architect, a team builder, and a champion for customer-first thinking.
Before joining Take 5 earlier this year, Zarkin was most recently the global chief brand officer at MPR Brands. He was a driving force behind the relaunch of the Good Feet brand, which grew to more than 300 locations and more than $700 million in revenue. Before that, he spent a decade behind the wheel at Pearle Vision as CMO, helping the brand earn a spot on Entrepreneur’s Top 100 Franchises list. He’s also held senior roles at other household names, including Victoria’s Secret and Avon Products. Along the way, his work has garnered Effies, Clios, and an Adweek Constellation Award.
Now, Zarkin is helping lead the marketing charge at Take 5 Oil Change, where his mission is to take the company from being “functionally famous to emotionally unforgettable.” He approaches marketing with a blend of strategic clarity and human-centered insight. His process begins with listening to understand what guests truly want, identifying pain points, and uncovering unmet needs. From there, he sets priorities and executes with a mindset rooted in clarity, accountability, and flexibility.
It’s necessary to craft a vision that endures through change, anchoring strategies in purpose over performance while staying curious and adaptable, says Zarkin. He measures success through business results, guest feedback, and brand perception, emphasizing that experience must consistently outweigh the price. That’s why one of his goals is to move Take 5 out of the “friend zone” by creating memorable, emotionally resonant moments that go beyond transactional loyalty.
As Zarkin says, “KPIs like store traffic matter but so does how people feel after interacting with our brand.”
Describe your role as CMO. My role is to help Take 5 evolve from being functionally famous to emotionally unforgettable. I’m here to connect the dots between guest experience, brand storytelling, and operational excellence because when those pieces line up, marketing stops being a department and starts being the growth engine of the business. What’s the most challenging part of being a CMO today? The toughest part is balancing scale with soul. Data, technology, and growth targets are all table stakes, but the real challenge is making sure every guest feels like they’re the only guest. Relevance has to come with a human touch. Otherwise, you’re just another logo shouting into the void. How has Covid impacted the way you have led your brand’s marketing efforts? Covid-19 reminded us that business is personal. At Pearle Vision, we doubled down on empathy and transparency, meeting people where they were, not where we wanted them to be. The lesson that carried forward for me is simple: Empathy isn’t a tactic; it’s a leadership principle.
What are the three most important keys to being an effective CMO leader today?
1. Craft a vision that holds steady when the winds shift.
2. Anchor strategy in purpose, not just performance.
3. Bring your notebook, not just your playbook, because curiosity and adaptability will take you further than certainty ever will. How do you prepare a marketing plan and execute the strategies? It starts with listening. What do our guests want? What frustrates them? What’s the unmet need no one else is serving? From there, we set clear priorities that serve both
the business and the brand. Execution is about clarity, accountability, and agility. Talk often, measure everything, adjust without ego.
How do you measure marketing results and effectiveness? We look at a healthy mix of business performance, customer feedback, and brand perception. If the experience consistently outweighs the price—a principle I call the “Brand Value Equation”—we’re doing our job well.
Discuss your core consumer marketing strategies and objectives. Our objective is to move Take 5 out of the “friend zone.” Familiar is fine, but unforgettable is how you win. That means creating moments that surprise and delight, investing in relevance over repetition, and building a brand that earns an emotional spot in people’s lives.
How do you go about creating a customercentric marketing and brand philosophy? By “thinking human” in every decision. I ask myself, “If I were the guest, how would this feel?” Marketing isn’t about campaigns; it’s about trust. We earn that one guest, one transaction, one smile at a time.
Describe your marketing team and the role each of them plays. Our team is a blend of storytellers, strategists, and franchisee champions. What makes them special isn’t just talent; it’s mindset. They’re empowered to challenge, elevate, and make the work sharper. We may sit in different chairs, but we row in the same direction.
Why is it so important for the marketing department to have a personal touch when it comes to helping the brand connect with franchise prospects? Because franchisees aren’t just buying a business. They’re buying into a belief system. It has to be obvious that this is more than a brand we advertise; it’s a brand we live. That authenticity shows up in every interaction.
How does this help your franchise sales and development effort? When prospects see our values in action, they stop seeing themselves as operators and start seeing themselves as partners. That’s the foundation of long-term success.
What ways/tools do you rely on to do this? We lean on a mix of transparency tools, dashboards, training modules, and onboarding systems as well as good old-fashioned face time. Technology scales, but personal connection seals the deal.
Do today’s prospects expect more from the franchise marketing department? What, and how do you provide it? Absolutely. They expect transparency, tailored support, and a road map to profitability and purpose. We deliver by being accessible, building robust onboarding, and keeping the conversation two-way. It’s not a broadcast but a dialogue. How is today’s consumer and marketing data helping you fine-tune your marketing initiatives? Data gives us patterns; our job is to find the people behind them. We use insights to refine messaging, timing, and media not just to reach more people, but to resonate more deeply.
Describe the evolving role of social media in your brand’s marketing efforts. Social isn’t just media anymore. It’s where reputation is built in real time. We use it to educate, engage, and amplify our stay-in-your-car convenience. But we’re also leaning into user-generated content because the most powerful voice for our brand is our guest’s, not ours.
How do you work with other internal departments, and does technology help? Marketing doesn’t work in isolation. We’re joined at the hip with operations, IT, and customer service. Tech helps us align faster, share insights, and stay nimble. But the real unlock is cultural: We solve problems together, not in silos.
Which technology tools are most valuable to you and why? CRM and data visualization platforms are critical. They connect the dots between who we’re reaching, how they’re responding, and where we need to pivot. Without that, you’re just guessing with a bigger budget.
How do you stay on top of changing technology? I always stay curious by reading, networking, and testing new tools through pilot programs before scaling. If something helps us serve and reach customers better, we adopt and adapt.
How do you manage costs and budgets for the marketing department? I approach marketing investment with the same discipline that applies to operations: Every dollar must have a purpose. We are focused on balancing national storytelling with local precision, ensuring that spend drives measurable impact on awareness and customer traffic. We use data to guide decisions, but creativity and cultural relevance remain at the core.
Do you see vendors as business partners? Why/why not? The best vendors aren’t vendors at all. They’re extensions of our team. If they challenge us, elevate the work, and share our ambition, then it’s a true partnership. That’s where the magic happens.
How have marketing strategies/tools changed over the past decade? How have you adapted? The shift has been from mass communication to personalized engagement. I’ve leaned into both sides of the coin—the art and the science, data plus heart—to keep brands from getting stuck in the “friend zone.”
How is your marketing/branding strategy developed, and how does it flow through the system? We start with clarity at the top—who we’re for, why we matter—then cascade that down into national, field, and digital marketing. The flow is less waterfall, more flywheel: learn, apply, share, repeat. What advice would you offer to aspiring CMO executives? Lead with heart and data. One without the other is half a strategy. Get out from behind your desk, keep a notebook in hand, and always “think human.” And remember: Your customer’s perspective is your North Star. Ignore it at your own risk.
STEP AWAY FROM THE BOT
AI won’t build your brand for you (yet)
Written by JACK MONSON
It doesn’t matter how you use AI for franchise development. What does matter is how your candidates are using AI.
AI has drastically changed how franchisors market their brands and opportunities. And a bit of it is actually helping. Unfortunately, much is not.
It’s time to move up from AI parlor tricks, cool apps, and funny videos to sharing your unified message with the potential franchisees who will become successful owners.
Stop creating AI content AI was not used in the creation of this article.
It’s a sad state of marketing affairs when I feel that I must say that. But the amount of AI slop is growing exponentially. Every day, we see more blogs, LinkedIn posts, and articles “written” using ChatGPT and other programs.
Some media outlets are reporting that the growing number of press releases and media pitches made by AI and executed via AI from some PR firms are causing journalists to ignore news from some franchise brands.
I also now start each of my Social Geek and Franchise News podcasts with the disclaimer that AI was not used in the creation of the podcast. It’s a bit of a jab, but I do want people who are giving me a few minutes of their time to know that the voices they are about to hear are real franchise pros, entrepreneurs, and thought leaders. I want people to know that they are about to engage with people. Also, all AI-generated voices on podcasts are awful and sound cheap. People are still better.
And look where all of this cheap AI content is heading: You can create your AI content, and I’ll have my bots, assistants, and notetakers consume it. We will both see great metrics. And no one’s business grew by one cent.
Maybe we need to put the AI content genie back in the bottle until we’re evolved enough to use it responsibly.
Focus on candidates
Make sure your content is being seen and heard by the candidates you want.
I’m speaking with franchisors about this every day. It’s the number one topic of conversation in franchise marketing. Never mind the faux experts
and snake oil salesmen who want to tell you about a cool app.
All of your owned content needs to be clear and concise. You want unified messaging about your brand and your franchise opportunities. A few places to update as soon as possible:
• Your frandev website
• Your brand’s podcast/your CEO’s podcast
• Your brand’s Wikipedia page
Your goal is to be the number one answer when candidates ask questions on their favorite AI engine or app.
Organic social media
While owned media and earned media (think PR) are critical for feeding the large language models (LLM), your shared media on social channels is becoming more important every day. This is especially true as the cost of running ads about your franchise opportunities is becoming drastically more expensive.
The 2026 Annual Franchise Development Report (AFDR) shows that the costs for paid ads on Meta, Google, and others have more than doubled in the past three years. The average cost per lead is now $351, and franchisors must plan on spending more than $17,000 in ads for each closed franchise deal.
Paid search and social ads are still effective in driving sales, accounting for a combined 34% of franchise deals. That number will surely decline in the coming weeks and months as ads continue to increase in cost while not feeding the LLMs like organic channels.
The most important social channel today, as we go to press, is Reddit. While many of us faded away from Reddit over the past few years, it’s time to fade back in. There are now 97 million daily active users. More importantly, it’s now the top source for citations by all AI programs. See you soon on Reddit!
Jack Monson is the chief growth officer of franchise marketing agency Thunderly and has been working with franchise brands in marketing for more than 15 years. He is also the chair of the IFA’s Marketing & Innovation Committee and the host of Social Geek, the most popular franchise podcast.
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Franchise Leadership & Development Conference
FLDC 25
FRANCHISE UPDATE MEDIA • INTERNATIONAL FRANCHISE ASSOCIATION
Invest in You
FLDC inspires franchise leaders to grow personally and professionally
Written by KERRY PIPES
The 2025 Franchise Leadership & Development Conference (FLDC) returned to Atlanta’s InterContinental Buckhead in mid-October. This year, more than 530 attendees convened for three dynamic days of insight, connection, and collaboration. It was the first FLDC held since the official merger of Franchise Update Media and the International Franchise Association this past summer.
The theme, “Invest in You,” set the tone for sessions that challenged attendees to rethink franchise sales and development leadership, adapt to shifting consumer expectations, and leverage emerging technologies, particularly artificial intelligence (AI) to navigate an evolving business landscape. The message was clear: Long-term franchise success begins with personal and professional growth.
Throughout the conference, packed sessions reflected the hunger for actionable ideas. CEOs, development executives, and industry experts shared strategies to improve franchisee profitability, build resilient systems, and drive smarter lead generation through data and technology. Keynotes and panel discussions explored everything from AI applications and unit economics to leadership development and advocacy efforts shaping the future of the franchise model.
Beyond the content, the FLDC once again lived up to its reputation as one of the franchise industry’s premier networking events. The Exhibit Hall
and Networking Lounge overflowed with energy as attendees met with peers, explored innovative products and services, and forged new partnerships. Conversations extended well beyond the meeting rooms, spilling into hallways and evening receptions that kept the buzz going late into the night.
More than 90 sponsors powered this year’s event, underscoring the depth of support from across the franchise ecosystem. Unleashed Brands and AnswerConnect led as Platinum Sponsors, and Hot Dish Advertising, Leasecake, BoeFly, Franchise Ninja, and BizBuySell served as Gold Sponsors. ApplePie Capital and Ignite Visibility hosted the annual STAR Awards reception, celebrating excellence and innovation in franchise development.
This year’s conference offered an expansive lineup of workshops, keynotes, and executive summits across multiple tracks: Franchisee Growth, Lead Generation, and Professional Development. Attendees engaged in sessions covering every stage of the franchise life cycle. Topics included mapping the franchisee journey, streamlining the opening process, developing leadership skills, optimizing lead generation with AI, and managing sales teams in challenging times. Workshops emphasized actionable strategies, real-world examples, and peer collaboration to drive growth and operational excellence.
High-level sessions, including the General Sessions, CEO Summit, and CDO Summit, brought together top franchise leaders to address profitability, legislative changes, and the strategic use of AI across franchise systems.
Keynote speakers Morris Morrison, an inspirational disruption expert, and Ben Whiting, a culture and communication strategist, delivered dynamic, motivational presentations focused on resilience, leadership, and creating limitless organizational cultures. Events such as the First-Time Attendee Meet & Greet and the STAR Awards dinner celebrated collaboration and achievement across the franchise community. The conference concluded with a reflective Professional Growth Planning Workshop that empowered attendees to turn insights into action.
This year’s FLDC combined quality content, inspiration, and strategy to help equip franchise leaders to thrive in an evolving business landscape.
The Franchise Update Media editorial team was on site for the conference and covered several sessions. Here’s a look at a few of this year’s FLDC sessions.
From Franchise Development to the Corner Office
Written by KERRY PIPES
Making the leap from franchise development to the C-suite was the focus of a session at the 2025 FLDC. Shawn Caric, vice president of franchise development for Smoothie King, moderated a session called “CEO Q&A: Growth Path Through Franchise Development.” It featured Sean Fitzgerald, president of TruBlue Home Service Ally, and Kristen Pechacek, president and CEO of MassageLuXe.
Both leaders shared personal insights on their journeys and what it takes to move from development to executive leadership. Fitzgerald, a veteran of BrightStar Care, Wireless Zone/Verizon Wireless, and Fyzical Therapy & Balance Centers, said the key is finding purpose over prestige. “Go where you can contribute,” he said. “I felt I could make a difference and have the license to make decisions” at TrueBlue Home Service Ally.
Pechacek emphasized courage and growth. “When you look at something [C-suite], it may seem overwhelming,” she said. “But don’t be afraid to go after it.” She added that cross-functional learning prepared her for leadership. “I was
already doing some of the things when I was in frandev,” she said. “Learning other departments, like operations, helped me become well rounded.”
Fitzgerald agreed: “Be curious about how marketing works, how frandev works, what it takes to be a successful franchisee.” Both noted that relationships are at the heart of franchising. “A franchise development person already has relationships with the franchisees,” Pechacek said, “and that’s a great skill to have in the C-suite.”
Leadership also brings weight. “People’s financial lives are at stake,” Pechacek said. Fitzgerald admitted, “I still have imposter syndrome … but my focus is on keeping the brand growing.”
Their closing advice:
• Pechacek: “Face it until you make it. You will get there.”
• Fitzgerald: “Be curious and tenacious. Always grow, develop, and learn.”
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Exit Strategies for Franchisees: Building a Path to Smooth Transitions
Written by KEVIN BEHAN
At the 2025 FLDC, industry leaders shared best practices for one of franchising’s most overlooked topics: exit strategies.
Moderated by Doug Flaig, CEO of Stratus Building Solutions, the session featured Mike Cline, CDO of Alliance Franchise Brands, Michael Lassen, VP, franchise sales for Steak ’n Shake, Paige Robinson Dosch, VP franchise resales for Unleashed Brands, and Abhi Patro, director, franchising for Firehouse Subs. Together, they outlined how proactive planning and transparency lead to smoother ownership transitions.
Cline opened by emphasizing early communication. “We want our franchisees to let us know ahead of time that they’re considering an exit,” he said. “That allows us to plan and support them properly.” Robinson Dosch agreed, noting that franchisors must make the process easy to navigate. “Use technology and collaboration tools to make it easy to share and submit information,” she said.
Patro reminded attendees that every resale involves multiple parties and timelines. “You’re not selling groceries; you’re
selling a business. It takes time to do it right,” he said. He urged brands to build broker, lender, and legal networks to move deals efficiently.
Lassen stressed the importance of education and clean financials. “We promote that constantly, especially if you plan to exit in two or three years,” he said, warning franchisees not to “take their foot off the gas” once they decide to sell. “You have to sprint to the finish.” he said.
Transparency was a recurring theme. “Transparency protects everyone,” said Patro, recalling deals derailed by undisclosed buyer issues. Robinson Dosch added, “Sometimes, closure is the right option. It’s better to protect the brand’s long-term health.”
As Flaig concluded, successful exits aren’t just transactions; they’re about protecting the brand, preserving relationships, and setting the stage for continued growth.
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Finding the right franchise prospects is a top priority but far from easy. At the 2025 FLDC, a panel of franchise professionals explored how to attract quality candidates in a changing market.
Moderator Jayson Pearl, president of ServiceScore, set the stage: “Our topic is around lead engagement, identifying and profiling the right target for the brand. How do we reach them? And how do we engage and convert them?” Panelists included Bert Lane, vice president of franchise sales for Zaxbys, Paul Pickett, COO and executive vice president of Wild Birds Unlimited, and Gage Hagedorn, director of business development and growth for Pearle Vision.
Lane emphasized defining the ideal prospect before engagement. He recalled flying a team to California to meet a multi-unit operator with 80 restaurants because he was considering converting to Zaxbys. After visiting the operator’s neglected stores, Lane knew the deal was off. “If they had entered the market the way they were running their current portfolio, we would have never been able to go back into Southern California because it would have scarred the brand,” he said. “And so the cost to go out there? Priceless.”
Hagedorn said franchise marketing has evolved from broadcast to conversation. “People want to be contacted and receive the information very quickly,” he said. AI automation now plays a growing role, delivering quick responses and freeing teams to do more personalized follow-up.
Pickett tackled the issue of unresponsive prospects. “If you ghost me, I’ll go crazy, and I will hunt you down like a dog,” he joked. Still, empathy guides his approach. “It’s a big deal to make a decision to put a lot of money into something,” he said. His team never calls contacts “dead,” only “not right now.” As he explained, “I don’t hate dead leads campaigns. I hate when people call them dead leads. It makes me crazy. It’s just not the right time.”
Development Specialists Share Franchise Sales Advice
Written by M. SCOTT MORRIS
During the “Franchise Sales Basics” breakout session at the 2025 FLDC, experienced development leaders shared practical tips for driving franchise growth. Moderator Albert Hermans, CDO of Floor Coverings International, led a discussion with Ed Yancey, vice president of franchise development at Burn Boot Camp, Ryan Granby, manager of franchise sales at Wingstop, Philip Watson, vice president of global development at Phenix Salon Suites, and Brandon Mangual, vice president of franchise development at Batteries Plus.
Yancey stressed setting clear expectations from the start, aiming for a 90-day end-to-end process. “I like for my sales team to kind of lead that journey and set the expectation and create a sense of urgency,” he said. Early qualification is critical: Candidates submit applications and financials before advancing, saving the team from “burning a lot of time and oxygen, he said. Discovery day, Yancey added, is “the bow on the package.”
Granby front-loads the process with qualification, verifying background, liquidity, and experience early. “What we focus on at the beginning stages is really qualifying and kind of weaning out ones who do not qualify,” he said. Finance teams handle verification, streamlining the process.
Watson of Phenix Salon Suites prioritizes capital readiness over résumés. “If they have the capital, they’ve probably done something right in their business careers,” he said. However, candidates seeking purely passive investments aren’t the right fit. He also pushes for commitment: “Pay the franchise fee, and we’ll put you with ApplePie (Capital). If you can’t get prequalified, I’ll give you the fee back.”
Mangual focuses on speed to lead. An AI assistant instantly texts prospects and books meetings, achieving a 90% booking rate even after hours. Batteries Plus tracks every stage to identify bottlenecks and maintain momentum. “We don’t sell the end result,” he said. “We sell the very next step.”
Experts Share How AI Is Transforming Franchise Development
Written by KERRY PIPES
At the 2025 FLDC, artificial intelligence (AI) once again took center stage. In a breakout session, “AI and Technology Unlock the Next Generation of Franchise Leads,” Samantha Tacca, senior manager, franchise marketing and development for Hand & Stone Massage and Facial Spa, served as session moderator. Michael Ackley, senior director, franchise development and marketing for Huddle House and Perkins, Loren Eckart, founder of Vision Growth Labs, and Joe Malmuth, CDO of Batteries Plus, explored how AI and data-driven tools are reshaping franchise lead generation. Finding leads is hard, but finding the right leads is even harder. “One way of increasing lead generation is through generative optimization,” Tacca said, “and then using AI to tailor every step of that lead’s experience.” Eckart described generative optimization (GEO) as vital to modern search. “You want your brand to be part of the solution AI finds,” he said, noting that clean, structured Q&A-style content helps brands surface in AI search results.
Ackley added that GEO now drives visibility and credibility. “It’s no longer about rankings; it’s about brand authority,” he said. “When someone searches ‘best restaurant investment under $250K,’ you want to be the relevant, authoritative answer.”
Malmuth distinguished reactive and proactive AI. Reactive tools automate tasks; proactive ones predict behavior and personalize outreach. “Proactive AI is the future,” he said. “As more players enter the market, costs will come down, and capabilities will expand.”
Still, Malmuth warned of AI’s risks and urged franchisors to involve legal teams from the start. “You can’t afford not to use AI,” he said, noting that Batteries Plus shortened its lead-to-close process to just 10 weeks and even uses AI to create personalized video greetings for prospects.
The session ended on a call to action. “Franchising is for the masses,” Tacca said, “but AI helps us personalize the experience.” Malmuth added, “AI can’t feed itself; it needs your creativity.”
2025 FLDC Conference Numbers
By Investment Level
Franchisor
Profiles by Title
By Number of Units
By System-Wide Gross Sales
the 2026 Annual Franchise Development Report
Written by HELEN BOND
t a time of artificial intelligence and digital everything, the most successful franchisors are finding that the modern path to growth is paved with a mix of cutting-edge tools and a renewed focus on timeless, human connection.
The shift toward a high-tech, high-touch strategy for finding and signing quality franchisee partners was one of the central findings of Franchise Update Media’s 2026 Annual Franchise Development Report (AFDR), the industry’s long-standing benchmark for tracking lead-generation and recruitment trends.
In October, Franchise Update Media’s Diane Phibbs, vice president of content and marketing, and Tim Courtney, vice president of franchise development for PuroClean, took to the stage at the Franchise Leadership & Development Conference (FLDC) to present key findings of the 2026 AFDR.
The session—part data reveal and part call to action—offered a candid look at how franchise development is evolving as brands work to balance trusted partnerships with new technology and redefine what success means in a changing landscape.
Recruitment Budgets
“The good news is we’ve seen budgets definitely increase over the past 10 years with just a leveling off in the past couple of years,” Phibbs said.
When it comes to spending, the trend is optimistic. Of those who have set a recruitment budget, more than half (55%) are planning to increase franchise development spending in 2026.
marketInG spend effectIveness
With budgets remaining largely unchanged, franchisors are relying on proven methods to reach and sign high-quality franchisees.
old-school tactIcs
For the second year running, the AFDR report looked at different ways franchisors reach prospective franchisees. Direct marketing, local events, and other forms of personalized, traditional outreach are yielding strong recruitment results.
BudGets flat, IntentIons hIGh
Starting with the big picture: Budgets are tight.
The 2026 AFDR survey of franchisors found recruitment spending flat with little real growth since 2022. The average franchise development budget sits near $278,000 with the median around $225,000. The numbers reflect advertising spend alone, not salaries or overhead.
Digital marketing remains the core of franchise recruitment, accounting for roughly 29% of total spend and achieving a 20% close rate. Franchise development websites claim 10% of spending and an even higher return, closing 22% of their leads by serving as a vital hub for candidate information and due diligence.
The most powerful engine for growth isn’t a sophisticated algorithm; it’s a happy franchisee. Referral programs, which account for just 6% of the budget, deliver a 30% lead-to-close ratio, outperforming all other channels.
“Referrals are the best thing that we can get from our franchise owners out there,” Courtney said.
“RefeRRals aRe the best thing that we can get fRom ouR fRanchise owneRs out theRe.”
“We are starting to see what we call, ‘what’s old is new,’ or good old-fashioned franchise development,” Courtney said.
Phibbs tied the change to a broader cultural shift among consumers. She encouraged attendees to consider how past recruitment tactics may help propel a recruitment program’s future success.
“People like that personal touch, that interconnection,” Phibbs said. “Those same philosophies apply to franchise development, and the number of people using them has basically doubled since last year.”
Respondents highlighted the following successful recruitment programs:
• Targeted, custom direct marketing to candidates (50%)
• Text messaging (38%)
• Involvement in associations (35%)
• Sponsored content (35%)
• Custom local events (25%)
• Community outreach/engagement (18%)
• Other (3%)
Tracking Cost Per Lead & Sale
cost and conversIon
Despite a wealth of data available to franchisors, the AFDR continues to uncover that only about half of franchisors track fundamental metrics such as cost per lead or cost per sale.
In 2025, 58% of respondents reported tracking their cost per lead, up from 56% in 2024, while fewer than half (49%) monitored cost per sale.
During the AFDR presentation at FLDC, Courtney asked the audience for a show of hands on who tracks these key numbers. To those who didn’t raise their hands, he advised, “Please talk to someone who has their hand up and see how you can apply this to your budgeting process. Remember: We are feeding success and starving failure.”
The need for discipline is becoming more critical and costly. The average cost per lead has risen to $351, up from $271 in 2024. The price to secure each new franchisee jumped from $13,757 in 2024 to $17,550 in 2025. Those numbers are driven by inflation and an industry-wide push for higherquality leads.
“If you’re getting smart and really accurate about your lead-generation programs, and you’re reaching your target audience with your messaging, sometimes, it costs a little bit more to get that person,” Phibbs noted. “If you’ve got a good lead and it moves forward, and you close the deal, then it’s money well spent. “
sales closInG ratIos
Tracking conversion rates across the sales funnel can offer insight into the effectiveness of your franchise development team. The survey reports the following sales ratios in 2025:
• Leads to sales. 2%, a slight decrease from 2.3% in 2024 but up from 1.8% in 2023
• Qualified leads to sales. 12%, up from 10% in 2024 and a dip from 13% in 2023
• Applications to sales. 32%, up from 28% in 2024 and 31% in 2023
• Discovery days to sales. 75%, up from 65% in 2024 and 73% in 2023.
“You really need, as a development person, to figure out when people are entering your process and where they are exiting in your process,” Courtney said. “If you’re really managing your funnel this deeply, you’ll find that you can fix things, correct things, or move on.”
lonG road to a deal
The report underscores that franchise sales for many brands are a marathon, not a sprint. The average journey from initial lead to signed agreement has stretched to 24 weeks, which Courtney suggested is a lagging indicator of economic indecision. Phibbs advised franchisors to consider front-loading 2026 budgets to generate leads and move them through the sales funnel earlier to combat the slowdown.
“theRe’s a place foR Relevant goals, accomplished goals, oR achievable goals veRsus Reaching foR the staRs and then saying, ‘oh, we didn’t quite hit it.’”
Brokers and Balance
Brokers continue to play a significant role in franchise development. Of the franchisors surveyed, 52% use brokers. That statistic has remained steady over the past five years.
Among those who use brokers, 70% secured a sale through a broker in the past year with an overall close rate of 16%. Most of those deals come from service brands and midrange investments between $100,001 and $250,000.
Success comes at a cost. Given that the average broker-sourced lead costs $4,057, the presentation highlighted the need for a strategic approach. The key is to find the sweet spot, Courtney advised, urging brands to define the ideal number of deals they want to flow from this channel. Franchise development teams that find the right balance continue to add significant value.
realIstIc Goals
Franchisors were asked to share input on goal setting. Only about 30% of those queried reported outperforming their 2025 franchise recruiting goals, a modest figure at first glance. But, as Phibbs pointed out, there’s more to the story. The data suggest that brands setting data-informed, realistic targets are delivering stronger results than brands that don’t. The study found that 71% of brands that reported lower goals exceeded their targets.
“There’s a place for relevant goals, accomplished goals, or achievable goals versus reaching for the stars and then saying, ‘Oh, we didn’t quite hit it,’” Phibbs said.
High-performing franchisors who exceeded their goals reported an average cost per lead of $343 (nonbroker). Cost per sale (nonbroker) was $13,332.
“Of course, they are doing more deals, so hopefully, that’s going to drive their cost per acquisition down,” Courtney said.
aI arrIves
The 2026 AFDR introduces a new benchmark to measure the arrival of artificial intelligence (AI) in franchise development, revealing an industry in the early stages of actively testing its potential.
Adoption is rapidly emerging—52% of brands are already using AI tools—but confidence is lagging. Roughly a quarter of leaders feel “very confident” in their use of the technology. Brands are primarily deploying AI to improve efficiency, handle initial contact tasks, and streamline the sales process. The most common uses are:
• Email personalization (59%)
• AI chatbots (44%)
• Market analysis (44%)
• Candidate screening (9%)
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Challenge #3: Many leads are just window shopping.
Challenge #4: Even the best leads get busy or forget. Leads who are unqualified or not ready can swamp you with manual chasing, when you should be focusing on the hottest hand raisers.
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The obstacles to broader and more effective use of AI include a lack of skilled personnel, high implementation costs, and data concerns. “I think every organization is really trying to figure out how to make it work,” said Courtney, adding that leaders need to be convinced that AI can be used both securely and efficiently.
For now, the technology’s bottom-line impact remains an open question. A decisive 68% of brands say it’s “too soon to tell” if AI is driving more deals. Yet, franchisors are realizing the benefits of an AI-powered platform on the overall recruiting experience. Among them:
• 28% reported improved candidate satisfaction.
• 40% cited enhanced personalization in the sales process.
• 58% credited the integration of AI with a streamlined sales process.
• 35% noted increased candidate engagement.
• 23% found greater efficiency in resolving questions and issues raised by candidates.
Clearly, this is a time of substantial technological changes with new possibilities and challenges. Phibbs framed this year’s data as a crucial baseline as AI evolves over the coming years. “We’ll continue to build on this,” Phibbs said, “[and] to learn more about what franchisors are doing with these programs.”
Brands Using AI
AI Challenges
AI Usage/Benefits
Get the full 2026 report
For nearly 15 years, Franchise Update Media’s AFDR has been the industry’s definitive source for franchise growth, setting the standard for data and strategy.
The 2026 AFDR pulls back the curtain once again, uncovering the latest trends and best practices in lead generation and recruitment. Built from an in-depth survey of franchisors and expert analysis, the report digs into spending, budgets, and business outlook to deliver a clear snapshot of how leading brands are investing, adapting, and planning for what’s next. This year’s edition also features a new section on the emerging and transformative role of AI and machine learning in franchise development.
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All Franchise Leadership & Development Conference attendees received a complimentary copy of the 2026 AFDR. To order your own, visit afdr.franchiseupdate.com
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STAR Awards recognize leaders in franchise recruitment
Written by KEVIN BEHAN
From startups to legacy brands, franchisors want to find the right people to grow their systems. The 2025 STAR Awards put franchise recruitment and lead-generation efforts to the test and celebrated the brands that stand out from the rest.
The awards were announced at Franchise Update Media and the International Franchise Association’s Franchise Leadership & Development Conference in Atlanta in October. While the techniques and strategies varied among the category winners, each franchisor attempted to make the recruitment process easy and convenient for candidates.
Top franchisors were honored for their excellence in Franchise Development Website and Online Lead Form Submission & Follow-Up. Awards were given for five different investment levels: up to $100,000, $101,000 to $250,000, $251,000 to $500,000, $501,000 to $1 million, and more than $1 million. In the event of a tie, winners were selected based on their responses to telephone calls from potential prospects.
Awards were also given for Overall Best Franchise Development Website, Overall Best Online Lead Form Submission, Most Responsive Brand, and Runner-Up Most Responsive Brand. BrightStar Care was named the Most Responsive Brand and won the award for Overall Best Online Lead Form Submission & Follow-Up. PJ’s Coffee of New Orleans won for Runner-Up Most Responsive Brand and Best Franchise Development Website in the $501,000 to $1 million range. Tropical Smoothie Cafe took home the title for Overall Best Franchise Development Website.
Winners of the Franchise Innovation Awards for Franchise Development were also announced at the event. The four categories were: Most Innovative Onboarding Program, Most Innovative Lead Generation Program or Platform, Innovation in Support of Franchisee Profitability & Validation, and Most Innovative PR or Social Media Campaign.
Here is a look at each category winner and thoughts from executives about their successful franchise development strategies.
Most Responsive Brand BrightStar Care
Shelly Sun Berkowitz Founder & CEO BrightStar Care
BrightStar Care won the top overall STAR Award for Most Responsive Brand. The recognition was based on the results combined by mystery shoppers, who pose as ideal candidates and contact franchisors through company websites. The mystery shoppers contacted more than 100 brands. Each franchise was evaluated with a list of standard criteria. See page 52 for more about the 2025 Mystery Shop. Shelly Sun Berkowitz, BrightStar Care’s founder and CEO, says the brand immediately connects with a candidate following an inquiry and has a personal interaction with the prospect within hours. She credits Ruth Chavez, senior manager of franchise development, with guiding candidates through the sales process by personally contacting each lead.
“This award means we have a process that is treating our prospects the way we want all brand stakeholders to be treated,” Berkowitz says. “We care about our clients and our caregivers and want to deliver the highest quality care. This commitment to our customer experience also shows in how we are treating our franchise prospects, who will be the ones providing the higher standard of care in their communities. We are beginning our journey by showing what excellence looks like and what our expectations are of ourselves and of our franchisees.”
Runner-Up Most Responsive Brand
PJ’s Coffee of New Orleans
Lory Schwartz
Franchise Development Manager
PJ’s Coffee of New Orleans
After a franchise candidate contacts PJ’s Coffee of New Orleans, they receive a text, email, and phone call within 24 hours. The company also has multiple other points of outreach. Franchise Development Coordinator Lindsay Lambert responds to each prospect inquiry.
“This award confirms for our team that we are putting our best foot forward and presenting our opportunity with accuracy and excitement,” says Lory Schwartz, franchise development manager. “We are honored that so many individuals wish to learn more about our brand, and we take their interest seriously. We appreciate being recognized by our franchise peers as they know how hard we all work to create opportunities to share what we do.”
Overall Best Franchise Development Website
Tropical Smoothie Cafe
Cheryl Fletcher Chief Development Officer
Tropical Smoothie Cafe
Tropical Smoothie Cafe sought to create a website that authentically reflected the brand while clearly communicating the franchise opportunity to an audience of sophisticated candidates. Beyond being a lead-generation tool, the site is designed to educate prospects about Tropical Smoothie’s brand story, highlight the simplicity of the business model, and showcase the brand’s strong national momentum. By aligning design, messaging, and functionality, the site gives candidates an idea of what joining the system feels like from the first interaction while attracting experienced operators and business-minded investors.
The website features bold visuals, vibrant storytelling, and intuitive navigation to share the Tropical
STAR Awards
Smoothie Cafe brand story. Its clean, mobileoptimized design supports SEO-rich content while franchisee voices and authentic storytelling provide a transparent look into the ownership experience. Key features include content tailored to multi-unit prospects, a structured discovery journey, and personalized tools for candidate convenience.
“This recognition reflects the thoughtful strategy, creative excellence, and measurable impact behind the site,” says Cheryl Fletcher, chief development officer.
“Rather than treating it as a functional asset, the team approached it as a core driver of franchise development, merging best-in-class user experience, storytelling, and brand consistency. The site communicates who Tropical Smoothie Cafe is and what makes the opportunity unique, helping the right prospects feel confident and inspired to take the next step. This strategic and emotionally resonant approach sets it apart in a competitive category.”
Fletcher says that since its launch, the site has driven high-quality traffic and strong engagement, exceeding industry benchmarks for conversion performance. Prospects arrive informed and aligned with the brand, leading to conversations early in the process and a short education curve. The website has become a core asset to support national growth goals and positioned the brand as a strong, scalable investment to help build meaningful connections with future franchisees.
Overall Best Online Lead Form Submission & Follow-Up
BrightStar Care
Shelly Sun Berkowitz Founder & CEO BrightStar Care
Leaders at BrightStar Care believe some of the key features of the brand’s franchise website are the transparency about territory availability, franchisee testimonials, and unit economics, so a franchise prospect can conduct their due diligence before deciding to engage. The site highlights the characteristics of the brand’s most successful franchisees to help a candidate assess their fit before proceeding. Prospects can then contact BrightStar via phone or engage with an online AI chatbot to ask questions. BrightStar keeps a phone number on its site to help retain a personal touch for prospects who want to discuss a franchise opportunity directly with a representative.
Shelly Sun Berkowitz, BrightStar Care’s founder and CEO, says the lead conversion to application has increased with candidates having greater access
to information and a chat AI tool to make it easy to engage. She says making the phone an option accommodates candidates who want a “do it for me” approach. For those who prefer a “do it yourself” method, BrightStar offers comprehensive information on the website and automated tools to allow a candidate to book an appointment without having to get on a call until they are ready.
“Growing the brand with culturally aligned franchisees is critical,” Berkowitz says. “Prompt, personalized follow-up helps us maximize connectivity and create a great first impression as we evaluate franchise prospects to join our brand.”
Best Franchise Development Website (up to $100,000)
Snapology (Unleashed Brands)
Abby Fogel VP of Brand Management
& Communications
Unleashed Brands
Unleashed Brands sought to build a franchise development website for Snapology to attract, educate, and convert qualified prospects by telling the brand story in a way that feels inspiring and approachable. The team wanted to highlight both the business model and the mission, showing the effect franchise owners can have on their communities. Every page was created to guide candidates in the process, help them find what they need, understand the investment, and take the next step toward ownership.
The website balances creativity and performance with a clean design, strong visuals, and clear messaging that walks users through the discovery journey. Candidates can explore start-up costs, training and support, available territories, and how to get started. The site blends brand storytelling with a smart conversion strategy.
Abby Fogel, VP of brand management and communications for Unleashed Brands, says Snapology has seen significant improvements in both lead quantity and quality. The brand experienced a large increase in total leads from 625 in 2023 to 2,684 in 2024, and it generated more than 1,100 leads through September 2025. The qualified lead ratio rose from 7.2 to 10.9%, a sign that the brand is connecting with candidates who are aligned with the brand and prepared to take the next step.
Fogel added that in the first year after the relaunch, the conversion rate improved, rising from 1.49% in 2023 to 5.87% in 2024. She says these results confirm that the website is effectively attracting the right prospects and converting them into meaningful franchise opportunities.
“The Snapology website delivers measurable results and reflects best practices in franchise development marketing,” Fogel says. “It effectively communicates who we are and what we stand for while producing strong performance outcomes. The site also demonstrates a thoughtful approach to user experience, ensuring that content and design work together to support the candidate journey.”
Best Franchise Development Website
($101,000 to $250,000)
Hungry Howie’s
Steve Clough
Vice President of Franchise Development
Hungry Howie’s
Hungry Howie’s launched its new franchise development website in December 2024 with the intention of becoming more SEO friendly. The brand’s goal was to increase the site’s functionality and include blogs and videos to help drive leads.
“We wanted to make sure the content we are putting on the site was relevant for people who are researching franchises,” says Steve Clough, Hungry Howie’s vice president of franchise development. “Visually, it is a pretty, eye-catching site. There are pictures of storefronts and designs but also the food. Our franchise is 53 years old, and people need to understand it is a successful brand that has withstood the test of time.”
Clough says the new website reduced the amount of text and relied on images and headlines as the key messages. Hungry Howie’s has seen the amount of organic search traffic double under the new site with an increase in visitors continuing to trend upward. The changes to the website have also helped streamline leads and reduce the number of unsuccessful leads the brand receives.
Best Franchise Development Website
($251,000 to $500,000)
Mighty Auto Parts
Lamar Russo Director of Franchise Development
Mighty Auto Parts
“Without the AI capabilities a year ago, responses were disjointed, and candidates didn’t have the most favorable first impression of the brand.”
Mighty Auto Parts created a franchise development website specifically dedicated to potential franchisees. Leadership wanted the site to clearly articulate the brand’s unique business model, which is wholesale only, exclusively B2B, preventive maintenance, and product focused. The goal was to make it easy for candidates to understand the opportunity, assess fit, and move forward with the next steps. The site emphasizes Mighty’s wholesale structure, the stability of the automotive aftermarket, and its franchise benefits, such as income potential, a balanced lifestyle, and brand legacy.
The website is designed with clear audience segmentation, beginning with a “Who are you?” navigation that allows visitors (car dealerships, wholesale distributors, quick service and tire dealers, or entrepreneurs) to immediately self-identify and access content tailored to their needs. From the start, the site communicates a strong value proposition by emphasizing that the franchise model is wholesale only, setting it apart from retail auto-parts concepts and helping candidates quickly grasp how the business operates. The website also provides transparent steps to ownership through a clearly defined seven-step process, guiding prospects from their first conversation with a home-office representative to the signing of a franchise agreement.
“Our website allows potential candidates to quickly grasp how our franchise operates, what sets it apart, and whether it’s the right fit for them,” says Lamar Russo, director of franchise development for Mighty Auto Parts. “At the same time, it strengthens our brand storytelling and credibility by showcasing our history dating back to 1963, emphasizing our core values, highlighting key performance metrics, and featuring authentic testimonials that build trust and legitimacy. Those are all crucial elements in effective franchise recruitment.”
Russo says the franchise has seen a significant increase in the quality of inquiries since launching the new website. By tailoring the site to the brand’s ideal investor segments and incorporating investment qualification data into the inquiry form, the company has received more relevant and serious prospects in the funnel while unqualified contacts have decreased. Features such as clear steps to ownership, transparent process details, and key performance metrics have improved conversion from inquiry to application as candidates arrive informed and prepared to move forward.
Best Franchise Development Website
($501,000 to $1 million)
PJ’s Coffee of New Orleans
Lory
Schwartz
Franchise Development Manager
PJ’s Coffee of New Orleans
PJ’s Coffee of New Orleans created a website that combined information about franchise ownership with clear and concise messaging about who the company is as a brand with its New Orleans roots. That includes the typical statistics for ownership and the frequently asked questions that all candidates expect to see along with the story of PJ’s craftsmanship and the hospitality the brand provides.
“Our site clearly and concisely defines our value proposition as a franchise business model while also allowing the end user to feel as though they have experienced the flavor, the environment, and the people that make us special,” says Lory Schwartz, PJ’s Coffee franchise development manager.
Schwartz says candidates who inquire often express their personal feelings of connection to the brand based on what they have seen on the website. She also says that many who have never been in a PJ’s café shared how the design and colors spoke to them and how the commitment to craftsmanship appealed to their senses.
Best Franchise Development Website
(more than $1 million)
Goldfish Swim School
Patty Crowe Director of Franchising
Goldfish Swim School
For the second straight year, Goldfish Swim School won the STAR Award for the best franchise development website more than $1 million. The site provides clear and transparent information about a franchise opportunity with the brand. It lists the Six Golden Steps to Ownership, which includes investment ranges and information about training and support so that candidates can self-qualify and confidently move forward in the process.
“Because the site combines clarity and credibility, it publicly displays the investment requirements, a disciplined ownership process, and comprehensive support while reinforcing brand purpose and safety education,” says Patty Crowe, director of franchising. “That blend of transparency (hard numbers/process), operational readiness (training and tools), and mission resonates with serious, well-capitalized candidates.”
Crowe says Goldfish has seen stronger, better-qualified inquiries since the site’s launch. Candidates arrive having reviewed the investment ranges, the six steps, and the training and support, which makes early conversations substantive and efficient.
Online Lead Form Submission & Follow-Up (up to $100,000)
Touching Hearts at Home
Glenn Leingang VP of Franchise Development Touching Hearts
at Home
Touching Hearts at Home places an intentional effort on quickly responding to candidate inquiries by calling them the same day of the initial inquiry. The franchise has implemented technology upgrades into its franchise development process and has been able to quickly speak with interested candidates.
“We captured their attention enough for them to fill out a form, and we must reach them before they move on to the next thing,” says Glenn Leingang, VP of franchise development. “The most shocking part is that the candidate will often thank us for responding so fast.”
Leingang says the franchise has seen a 12% increase in scheduling introductory calls with candidates. He also added that Touching Hearts at Home is having a record-breaking year in franchise development. It has awarded 21 franchises in the year since implementing this system after not awarding a franchise in the previous four years.
“Growing the brand with culturally aligned franch isees is critical. Prompt, personalized follow-up helps us maximize connectivity and create a great first impression as we evaluate franchise prospects to join our brand.”
Online Lead Form Submission & Follow-Up ($101,000 to $250,000) Comfort Keepers
Scott Oaks Vice President of Franchise Development Comfort Keepers
Scott Oaks, vice president of franchise development for Comfort Keepers, says the brand tried to balance both technology and the human touch in how it responded to candidate inquiries. The brand set up an AI scheduler to immediately respond to a candidate via text, and a representative with Comfort Keepers will also follow up directly with a call.
“We felt it was important to incorporate tech and human interaction as part of the experience and not have one replace the other,” Oaks says. “Our candidates can be Gen Xers or older millennials, and they don’t necessarily want to interact with a chatbot. Candidates can schedule a call via the text thread and then speak with someone directly.”
Oaks says the contact rate with positive leads has more than doubled. Without the AI capabilities a year ago, responses were disjointed, and candidates didn’t have the most favorable first impression of the brand. He says candidates now have a much higher standard of what they should expect should they become franchisees with Comfort Keepers.
Online Lead Form Submission & Follow-Up
($251,000 to $500,000)
Marco’s Pizza
Gerardo Flores Chief Development Officer
Marco’s Pizza
Marco’s Pizza online lead form incorporates financial and market-based qualifiers that align with its strategic growth plan. That allows the development team to immediately understand a candidate’s investment capability, desired market, and relevant experience. With that information, the brand can prioritize high-potential candidates in markets where it is actively expanding. On the back end, the process triggers an immediate acknowledgment and initiates a timely follow-up call, ensuring prospects experience a hands-on, consultative connection from the start.
Gerardo Flores, Marco’s Pizza chief development officer, says the lead-qualification rate continues to climb year over year. Not only are more leads generated, but the company is attracting aligned, serious candidates from the start. This has translated into productive initial calls, fast movement through the pipeline, and strong conversion rates. He says the company has also seen improved engagement from prospects who appreciate the clarity and responsiveness of the process.
“This approach has empowered our sales team to work smarter, not harder,” Flores says. “By capturing key information up front, our team can tailor conversations to each candidate and focus on those who are both financially and operationally prepared to grow with Marco’s. As a result, we are spending less time on unqualified leads and more time building relationships with the right operators in the right markets. That efficiency not only accelerates development, but also strengthens the overall quality of our franchise network, fueling long-term, strategic growth.”
Online Lead Form Submission & Follow-Up ($501,000 to $1,000,000) Pinch A Penny
“Our process is to call, email, and text three times each from a real person and not our automated process until we place their info into our drip program,” says Adam Heflin, Pinch A Penny director of franchise development. “So, each lead will receive a minimum of 12 contacts within eight days between our lead screener and our automated emails and texts.”
Heflin says the brand has received positive feedback from candidates about its communication. He added that the process is consistent with Pinch A Penny’s business operations with all candidates and franchise owners.
Online Lead Form Submission & Follow-Up (more than $1 million)
Celebree School
Kimberly Wolff VP of Franchise Development Celebree School
Celebree School has two business development representatives who quickly reply to inbound inquiries with a phone call. It also has built-in custom workflows using a FranConnect CRM platform to automate responses to inbound inquiries via email with engaging content, videos, and useful information. The franchise uses an auto scheduler, which allows candidates to set up an initial call at a time convenient for them.
“We know that the faster we can connect with a candidate, start the discovery journey off with an exceptional experience, and deliver on that experience at every step, the more likely we are to convert that candidate to a franchise owner,” says Kimberly Wolff, Celebree School VP of franchise development.
Wolff says having multiple touchpoints at different times of the day and through different types of contact has improved initial call results. She added that the brand’s connection KPIs and the number of introductory calls booked as a result remain above target.
Adam Heflin Director of Franchise Development Pinch A Penny
Guided by the belief that people do not want to complete a long inquiry form in the initial stages of researching a business, Pinch A Penny made its lead form as concise as possible. It then attempts to contact any lead received within 24 hours.
INNOVATION AWARDS WINNERS
Franchise Update Media’s Innovation Awards honor franchisors who find new ways to cut costs, save time, engage customers, and recruit franchisees. Most award winners were recognized in June. Franchise Development winners were announced at FLDC in October and are listed below.
Most Innovative Onboarding Program: Shipley Do-Nuts
Jonathan Massey Vice President of Franchise Recruiting Shipley Do-Nuts
Shipley Do-Nuts’ onboarding effectively begins at discovery day when the brand shows candidates a day in the life of a franchise owner. Shipley gives candidates an opportunity to experience an early-morning shift by making and kneading the dough, working with customers, and getting an overview of the brand’s management tools.
The company provides its new franchisees with a comprehensive onboarding experience from the time a candidate signs the franchise agreement to when they open their first location. Shipley DoNuts offers support with site selection and lease negotiation, design and architecture, permitting, and construction project management. It also includes a six-week operator training course with “Do-Nut University” at corporate headquarters in Houston. In addition, Shipley provides field training support for the first three new store openings and creates a custom marketing plan for each location.
The company connects franchisees with its real estate, construction, and new store opening teams, conducts site tours, and holds weekly calls with franchisees to project manage the process. Jonathan Massey, vice president of franchise recruiting, says the onboarding process gives new franchisees knowledge and confidence. It has reduced the number of days between signing and opening and improved new store opening performance by 10% over the past two years.
Most Innovative Lead Generation Program or Platform
Cousins Maine Lobster
Sabin Lomac Co-Founder
Cousins Maine Lobster
Cousins Maine Lobster embarks on a road show to take its food trucks to various markets to meet
potential franchise prospects. This model reimagines franchise development as an event-driven, community-based experience rather than a digital-only pipeline. It gives candidates a front-row seat to the brand and motivates them to meet the Cousins’ team.
The events combine in-person energy with strategic PR and digital campaigns in each market. The result is a powerful mix that builds excitement, credibility, and connection with the brand. Instead of a transactional process, the road show is memorable and relational, which ultimately drives high-quality leads and strong franchisee commitment.
“Since launching the road show, we’ve seen tangible success across the markets we’ve entered from high turnout and strong press coverage in key growth regions,” says Sabin Lomac, co-founder of Cousins Maine Lobster. “Each road show creates a ripple effect by building local awareness, driving digital lead flow, and fostering meaningful face time between our team and prospects. It’s also helped enhance the validation process as candidates leave with a deeper emotional connection to the brand.”
Lomac says the road shows help build brand exposure in new markets so that local awareness and excitement are established by the time franchisees launch. It has become a powerful way to scale franchise development while staying authentic to the brand’s identity. The program deepened community engagement, boosted visibility in key regions, and improved both the quality and conversion rate of leads.
Innovation in Support of Franchisee Profitability & Validation Empower Brands
Cristin Smith Senior Director of Revenue Operations Empower Brands
Empower Brands recently launched the Empower Partner Information Connection (EPIC) portal, a new technology platform that gives franchise consultants real-time access to everything they need to help candidates explore business ownership opportunities with the brand. EPIC provides territory availability and brand information and allows consultants to register candidates directly in one central location. EPIC brings together multiple brands and data sources under one system and saves consultants time, helps them serve their clients, and creates an efficient and transparent process.
“EPIC embodies what innovation in franchising is all about by using technology to make the process smarter and more supportive,” says Cristin Smith, senior director of revenue operations for Empower
Brands. “By giving consultants and candidates instant, accurate access to information, we’re helping everyone make better, faster decisions that lead to stronger franchisee outcomes.”
Since EPIC launched, Smith says the brand has seen an increase in how quickly and effectively consultants can engage. The portal has helped improve communication, speed up lead follow-up, and increase the number of qualified candidates entering the system. Internally, it has given the development team better visibility into activity across all of Empower’s brands and markets, helping the team focus on where to make the most impact.
Most Innovative PR or Social Media Campaign
Capriotti’s Sandwich Shop
Julia Ledford
Senior Director of Franchise Development
Capriotti’s Sandwich Shop
Capriotti’s Sandwich Shop produced a testimonial video with franchisee Tom Donovan about his experience as an owner with the brand. Donovan offered a glowing endorsement of the quality of food, support, business model, and positive culture Capriotti’s provides. He also shared his overall satisfaction with being a franchisee. The video was featured on the Capriotti’s website and email drip campaigns.
“Each day, we are all finding new ways to solve long-standing challenges,” says Julia Ledford, senior director of franchise development. “Being able to think outside the box and consistently create new content helps us stand out in the very crowded franchise world. Prospects have access to so much more information these days, and they do a large portion of their research before ever reaching out with an inquiry.”
Ledford says many of the new leads she speaks with on initial phone calls say the testimonial video resonated with them. She says emotional connection and relatability often come before financial details early in the journey when franchise candidates are first evaluating their options. Hearing from franchisees who share similar motivations or life experiences makes the opportunity feel attainable and authentic.
Awards
2025 STAR Award Winners
Most Responsive Brand
BrightStar Care
Runner-Up Most Responsive Brand
PJ’s Coffee of New Orleans
Overall Best Franchise Development Website Tropical Smoothie Cafe
Overall Best Online Lead Form Submission & Follow-Up BrightStar Care
Franchise Development Website
Snapology (Unleashed Brands), up to $100,000
Hungry Howie’s, $101,000 to $250,000
Mighty Auto Parts, $251,000 to $500,000
PJ’s Coffee of New Orleans, $501,000 to $1 million
Goldfish Swim School, more than $1 million
Online Lead Form Submission & Follow-Up
Touching Hearts at Home, up to $100,000
Comfort Keepers, $101,000 to $250,000
Marco’s Pizza, $251,000 to $500,000
Pinch A Penny, $501,000 to $1 million
Celebree School, more than $1 million
2025 Franchise Innovation Awards for Franchise Development Winners
Most Innovative Onboarding Program
Shipley Do-Nuts
Most Innovative Lead Generation Program or Platform
Cousins Maine Lobster
Innovation in Support of Franchisee Profitability & Validation
Empower Brands
Most Innovative PR or Social Media Campaign
Capriotti’s Sandwich Shop
Report dives into franchise development do’s and don’ts
Written by M. Scott Morris
When the business environment is uncertain—who could deny that this year?—it’s more important than ever to get the details right.
Franchise Update Media’s annual Mystery Shop provides a scorecard for franchise development teams. It’s a revealing snapshot of how well brands are connecting with the people who could become their newest franchisees. The best performers were celebrated in October during the 2025 STAR Awards at the Franchise Leadership & Development Conference in Atlanta. See page 44 for the winners.
Since 2019, Jayson Pearl, president of ServiceScore, and his team have researched online form submissions and telephone responses. “I always think of it as a diagnostic,” he says. “It’s a real objective check on the health of their inquiry process.”
This was Adam Redd’s first year to participate. As director of franchise development for Celebree School, Redd says that reviewing the quality of franchise development websites was a learning opportunity. “I really enjoyed the process,” he says. “It forced me to look at things from a different perspective, and I learned a lot about how companies present themselves to candidates online.”
Read on to see how well the participating companies handled the important details of franchise development.
Online form submission
For roughly six weeks in August, a fictional character named Mario Jordan was submitted as a qualified lead at 102 different websites. Pearl says the mystery shop examines how well brands connect with potential franchisees during those critical early moments. A quick response is the first step in building trust and moving a candidate forward.
“After companies see the results, sometimes they’re surprised, and sometimes it confirms what they already know about their processes and the
Jayson Pearl President
responsiveness of their teams,” Pearl says. “One of the things that we do is make it objective. There’s a report, and none of the questions is subjective.”
This year, researchers found that 44% of the contacted brands called potential prospects. Of those, 25% called within 24 hours, 56% called within 8 hours, 2% called between eight and 24 hours, and 16% called beyond 24 hours.
In last year’s shop, 55% of brands called the lead at any point. The response was 41% in 2023 and 55% in both 2021 and 2022.
Pearl sees the numbers as both a reality check and a call to action. “It’s not satisfactory to say phone calls aren’t important because it’s all text now,” he says. “It really depends on the person.”
According to Franchise Update Media’s 2025 Annual Franchise Development Report (AFDR), the cost per lead has increased from $97 in 2021 to $351 in 2025. Last year’s cost per lead was $271. The cost per sale has increased from $9,270 in 2021 to $17,550 in 2025. It cost $13,757 to close a sale in 2024. See page 38 for a breakdown of the AFDR.
Returning to the mystery shop numbers, 60% of brands sent a text follow-up to a lead, which is 10 percentage points higher than in 2024. In this year’s report, 35% sent a text and made a call, and 15% only texted.
When a call was scheduled with the shopper, 96% of recruiters were available for the call, which is better than last year’s 93%. This year’s no-show rate was 4% compared to 7% in 2024 and 11% in 2023.
Pearl says it was good to see improvement from year to year, but companies shouldn’t become complacent about their technology. “There are lots of elements of the process that technology can streamline and add efficiency, but there are also things that can break,” says Pearl, adding that executives should require regular audits of the technology surrounding prospect recruitment.
Questions to consider include:
• Does your lead form submit correctly without errors?
• Do all the form fields work on your lead form?
• Does your CRM sync correctly with the salesperson’s calendar app?
• Does your AI chatbot help or cause frustration?
Adam Redd Director of Franchise Development Celebree School
Website shop
Redd began judging websites in July. After getting the list of companies, he searched Google for frandev websites. He found sites for 101 of 104 companies. He couldn’t find sites for two companies, and another site was down for maintenance.
“The site was undergoing maintenance, but there was no contact information to reach out to,” he says. Each site was judged in five categories:
• Video content (testimonials and brand videos)
• Investment details
• Candidate criteria
• Available territories
• Inquiry form
Redd weighed each category equally, following the assignment’s guidelines. For each category, brands could earn a 1, 0.5, or 0. Redd says that a 0.5 grade was for sites that had the information, but it wasn't easy to uncover.
“If it was difficult for me to find,” he says, “it’s going to be definitely difficult for somebody else to find who didn’t know what they’re looking for.”
During his shop, he discovered that 65% of brands lacked a franchise testimonial video, something he says is crucial for potential prospects. “I would expect a website to have testimonial videos or at least some type of testimonial,” Redd says. “Video is better. It’s easier to digest.”
“After companies see the results, sometimes they’re surprised, and sometimes it confirms what they already know about their processes and the responsiveness of their teams. One of the things that we do is make it objective. There’s a report, and none of the questions is subjective.”
Mystery Shop
“At
the end of the day, it doesn’t matter what their net worth or liquidity is. If they submit a lead, I’m going to call them. Sometimes, people don’t know what their liquidity is or truly understand the definition. It’s my job to establish that relationship and let them understand what those prequalifications are.”
He points to changing media habits and shrinking attention spans as reasons why video content is now fundamental. “Short-form videos are really taking hold. People like to capture information quickly,” he says.
Videos don’t need to be long. They can range from 15 to 60 seconds. They also don’t need heavy production values. An iPhone or Android phone can get the job done without making the finished product feel overly staged. Authenticity, Redd says, is more important than production value. “It doesn’t have to be a full-out production of a video that costs thousands of dollars,” he says.
When it came to investment details, Redd found that 38 companies included Item 7 information from the FDD. In addition, 56 of the sites included candidate information. “It allows people to disqualify themselves,” he says. For example, Celebree School requires a passion for working with children, which helps filter out those unsuited to its business model. In addition, clear financial requirements can save time and improve lead quality.
But there’s nuance. “At the end of the day, it doesn’t matter what their net worth or liquidity is. If they submit a lead, I’m going to call them,” he says. “Sometimes, people don’t know what their liquidity is or truly understand the definition. It’s my job to establish that relationship and let them understand what those prequalifications are.”
Redd found that 77 of the 101 sites included available territories, a key piece of information for serious candidates. All of the active sites also included an inquiry form. “Essentially, everybody had an inquiry form, which is a good thing,” Redd says.
For Redd, the best websites are simple, transparent, and easy to navigate. “This is part of the customer experience journey. If you make it
complicated or you make things buried, it’s difficult to find,” says Redd, adding that he plans to use what he learned to update Celebree School’s website.
Direct calls
Not all brands have telephone numbers on their websites. Last year, it was decided to use call responses in the event of a tie for a STAR Award. The rule was also followed this year. Pearl and his team at ServiceScore looked for phone numbers on 102 websites and made the calls.
“Phone calls are important when it’s a considered purchase. A considered purchase is where it’s urgent, expensive, or complicated,” Pearl says. In such cases, people often want to speak with an expert on the phone rather than do more research on their own or interact with a chatbot.
Here’s a breakdown of the results:
• 55% of participating brands had a phone number. In 2024, it was 67%. The 2023 number was 62%.
• 34% of those answered when called in 2025, a drop of 3 percentage points from 2024.
• 18% had someone who answered the phone and could handle an inquiry. It was 20% last year.
• 16% had someone answer and take a message. The number was the same in 2024.
• Of the 66% of calls that weren’t answered, 16% did not go to voicemail, and that was the same in 2024.
• The remaining 50% of calls from that 66% that weren’t answered went to voicemail, a 2 percentage point increase from last year.
• Of those that went to voicemail, 54% were called back within 24 hours. It was 30% in 2024.
Key takeaways
By some measures, franchisors must market their opportunities to five generations. Each group has its own media habits and preferred ways of communicating.
“The goal is to reach people in the style they prefer,” Pearl says, “and make it easy for them to take that next step.”
Successful franchise development during uncertain times is about executing the fundamentals with consistency and care. That means easily navigable websites, authentic content that connects with prospects, and quick and thoughtful follow-ups.
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How do you qualify leads early in the funnel to avoid wasting resources on poor fits?
For me, the most important step in qualifying franchise leads is speed. The longer you let a lead sit, the colder it becomes and the harder it is to know if you’re dealing with a serious candidate. I make a point to reach out right away. On that first call, I’ll either set up a deeper meeting or, if time allows, walk through the main questions with them then and there.
My priority in that conversation is listening. I want to hear their background, their professional experience, how they first heard about our brand, and what markets they’re interested in. Those details immediately give me a sense of whether the candidate could be a fit. If something doesn’t line up, whether it’s capital, territory, or overall expectations, I don’t hesitate to cut the call short. That saves both sides from investing time unnecessarily.
Another filter comes before we even get on the phone: We build qualifiers directly into our lead forms. Candidates are asked about their net worth and liquidity up front. If they clearly don’t meet those requirements, that prevents us from spending time chasing conversations that won’t work out. For those who do meet the thresholds, I verify the information during the first call and again in their application.
That application step is critical. I don’t send out our FDD until the candidate has completed the form. Having them take that extra action shows they’re serious enough to put in the effort, and it gives me a much fuller picture of their financial capacity, goals, and interest level. It also creates a natural checkpoint in the funnel. If someone isn’t willing to complete an application, they’re not likely to follow through on a long-term commitment like owning a franchise.
By moving quickly, asking the right questions, and requiring small commitments along the way, we can separate casual inquiries from serious prospects. That way, our time and resources are focused on the candidates who have both the capability and the genuine desire to grow with our brand.
VP
It’s not about weeding people out; it’s about protecting them from avoidable strain and protecting the brand from undercapitalized openings that can’t deliver the client experience we promise.
HERB HEISERMAN Chief Growth Officer
Zoom Room
At Zoom Room, we believe that qualifying franchise leads early is about filtering out poor fits and protecting the health of our brand, the time of our team, and the success of every franchisee who joins our network. We’ve learned that a disciplined, human-centered qualification process pays off far more than simply chasing volume.
Our first step is financial. We know from experience what it truly takes to open and sustain a Zoom Room gym—not just to build it, but to market effectively, staff appropriately, and carry the business through the early months of client acquisition. We use clear financial thresholds that ensure candidates can fund the build-out and initial working capital without overextending. It’s not about weeding people out; it’s about protecting them from avoidable strain and protecting the brand from undercapitalized openings that can’t deliver the client experience we promise.
Next, we look for business understanding. Candidates don’t need to have run a dog-training facility before, but they must appreciate what it means to operate a small business: managing schedules, leading a team, and committing to the daily disciplines that drive local success. We talk candidly about the realities of staffing, marketing, and community engagement. The best candidates light up at the challenge rather than shy away from the workload.
Equally essential is philosophical alignment. Our entire model is rooted in positive reinforcement, community connection, and professional standards that elevate the industry. We look for people who genuinely believe in our training methodology and are willing to follow our systems. That alignment isn’t optional. It’s what keeps every Zoom Room across the country delivering the same trusted, joyful experience for dogs and their owners.
Finally, the most telling factor is personal connection. Within a few minutes, it’s often clear whether someone will fit into our collaborative, supportive culture. We’re building a network of partners, not just franchisees. That chemistry includes shared values, communication style, and authenticity, and it matters more than any spreadsheet. By combining objective financial and operational criteria with an intuitive, relational approach, we ensure every candidate we move forward with has both the means and the mindset to thrive. The result is stronger partners, healthier units, and a network that grows with integrity and mutual trust.
We invest in hiring the right people for our sales team and following a consultative sales approach.
The success of a franchise system depends on many factors. In restaurants, these include a brand that is on trend with overall brand awareness, a proven business model, brand consistency, advantageous real estate, and franchisor support. Brands need to be innovative and use technology to enhance operations and guest experience.
Above all, the most critical and difficult aspect to assess is the franchisee. A successful franchisee needs a wide range of qualities, both tangible and intangible. They need passion for the brand, strong financial and operational skills, a service-minded focus on the guest, the ability to hire, train, and retain staff, and knowledge of the local market.
At WoWorks, qualifying leads early in the funnel begins with a structured assessment process and a well-trained sales team. The goal is to identify candidates with the potential for success as early as possible, so time and resources are focused on the right prospects.
We invest in hiring the right people for our sales team and following a consultative sales approach. The best salespeople are not necessarily the best talkers; they are the ones who ask thoughtful, strategic questions and truly listen to understand the prospect’s needs.
A consultative salesperson acts in part as the prospect’s advisor while keeping the primary goal in mind: selling. They come prepared, thoroughly understanding our brand, the competition, and the market. By building confidence, trust, and credibility through rapport and strategic open-ended questions, we uncover the prospect’s true objectives, concerns, and potential. Seeing the opportunity through their eyes means we can quickly determine whether they are congruent with our brand.
This approach allows our team to focus on high-potential candidates while efficiently identifying those who may not be a match. It builds longterm relationships, supports franchisee success, and ultimately increases overall sales results. By combining structured evaluation with consultative selling, WoWorks can invest time and resources where they can have the most impact.
“
While it is important to set clear partnership standards, don’t be afraid to investigate the potential of a franchisee who may not check every box.
ALBERT HERMANS
Chief Development Officer Floor Coverings International
One of the most important factors in building a sustainable franchise is partnering with the right franchisees, but a key challenge can be managing the front end of the sales funnel. While having a large number of leads can be exciting and signal a strong business model, it’s crucial to remember that not every inquiry will be the right fit. Prioritizing efficiency when filtering through leads is key to avoiding wasted resources. At Floor Coverings International, we’ve implemented a lead qualification system early in our development process to ensure we partner with the right people, saving our brand valuable time and resources.
Above all, your brand must clearly define what a qualified candidate looks like. While financial criteria are important, they cannot be the only consideration when evaluating potential partners. Build an evidence-based profile of top-performing franchisees, including background, leadership style, operational strengths, capital structure, and even personality traits, and then hold new leads against these benchmarks. This allows you to build pattern recognition to ensure franchisee alignment early on.
Transparency in what candidates you are looking for is another key in filtering leads early. Don’t shy away from being open about who you are looking
for, especially in marketing your franchising opportunity. This helps to eliminate those who might be the wrong fit before they even come across your desk. While it is important to set clear partnership standards, don’t be afraid to investigate the potential of a franchisee who may not check every box. If they are coachable and passionate, they can easily become the ideal fit.
As leads start coming in, it’s important to have a fast, structured screening process in place. During the first call with a potential franchisee, your development team should be equipped to quickly determine if they are the right fit. This should not be a selling stage but rather an assessment stage.
Tracking data and continuous refinement are key in maintaining a precise funnel. Determine which sources yield the best candidates, where leads may be stalling, and which early indicators best predict future performance.
Franchising is a symbiotic relationship. While you support your franchisees, they represent your brand. A poor fit can harm your reputation. By learning how to say “no” early on, you’re making room to say “yes” to stronger franchisees.
the tides are changing.
WITH AI LEADING THE WAY, TODAY’S DIGITAL LANDSCAPE IS CHANGING HOW CUSTOMERS AND FRANCHISE CANDIDATES FIND YOU.
Yesterday’s “best practices” are today’s bottlenecks, and funnels that once worked no longer convert.
The playbook is changing: You can ride the wave with everyone else, or create the next one.
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Selling as an Experience Sales success requires both expertise and rapport
Written by JOHN DIJULIUS
Selling has never been more difficult than it is in today’s crowded market. It is hard to tell one company, service, or product from another. Leaders must train their sales teams to differentiate their company from others. A potential buyer should hear and experience those differences throughout the entire sales process.
At heart, everyone is in sales, and the formula for standing out is simple: Expertise + Rapport = High Sales.
Expertise is a professional’s knowledge of the products/services they sell and how they affect the buyer. Demonstrate expertise so that the buyer thinks, “Wow, I have never met anyone who knows more about this service/product, its benefits, and its drawbacks.”
Rapport is making a genuine connection with the buyer and demonstrating your interest in helping them get what they need. The adage is true today: “Customers buy from people they like.” You want the buyer to realize that the professional they are dealing with cares about them and their company’s success.
The key is demonstrating your expertise while building rapport from the initial call, in the discovery process, during the proposal, in each follow-up step, through closing the sale, and after the sale. When consistently done, this creates a selling experience that will be hard to beat. Even better, you will not have to be the lowest bidder. The professional who provides an actual selling experience often wins with the highest-priced proposal.
A salesperson’s superpower
The best superpower any successful professional needs is empathy. As a salesperson’s empathy increases, their level of listening increases. When
professionals understand the buyer’s plight, they intuitively assess the meaning of buyer messages by placing themselves in the customer’s place.
The best way to stand out from competitors that appear to provide what you provide is not to be ambitious with closing the sale. Be cautious; ensure yours is the right company for what the customer seeks. Don’t assume the buyer even knows what they want. Demonstrate how your company can help them move forward confidently.
During the discovery phase, The DiJulius Group likes to shock clients by stating, “We will only take you on as a client if we both agree that the value you will receive from our consulting agreement is far greater than the fees you pay us. Is that acceptable?”
This question shocks the buyer, who has not heard this before. It’s our way of saying, “Before we proceed and waste any more of each other’s time, we need to figure out if we are the right fit.”
A great salesperson understands that both parties must win. This agreement drives us to examine every potential source of value, identifying pain points and opportunities that all clients possess. Additionally, it clarifies the client’s ultimate goals and the desired future state.
Be different
During the initial call, the buyer tells the salesperson what their company is looking for. The mistake at this stage, and in the proposal stage, is to share how great the company is, how it’s a perfect match for the buyer’s needs, and how well-known clients agree. There is a time and place for this, but it shouldn’t be how the salesperson begins. Assume the buyer is speaking to three to six other companies and has heard it all. To be effective, the selling experience needs to be different.
Part 1: Learning
During the initial call, the sales professional should not be doing the talking; they should be focused on asking great questions. Your curiosity builds rapport while encouraging the prospect to tell their story.
A sale happens while you are immersed in helping to serve your customers. Don’t focus on the sale; focus on providing expertise, being a resource, and building a genuine rapport. The sales will come.
Part 2: Educating
The second part of the call allows the salesperson to demonstrate their expertise. One of my favorite books on this topic is The Challenger Sale: Taking Control of the Customer Conversation by Matthew Dixon and Brent Adamson. The authors’ premise is that the best salespeople find out what a customer’s needs are and then challenge the customer’s assumptions. The sales professional is willing to educate the buyer on what they may be missing in their quest to solve their problems.
The other salespeople the buyer speaks to will say, “Yes, we do this, and we can do that.” They provide no new information and no pushback on the potential gap between what the customer thinks they need and what they truly need.
You earn business by being generous with your knowledge and resources without asking for anything in return.
Teach the customer
The best brands teach their employees to educate customers rather than sell to them. Sometimes, when it is genuinely in their best interest, that may mean talking a potential buyer out of making as big a purchase as they initially intended. Sounds crazy? Trust me, every time we have done that with a client, they spend more with us in the long run because we have proven that our number one priority is what is in their best interest, not just capitalizing on that one sale.
John DiJulius III, author of The Customer Service Revolution, is president of The DiJulius Group, a customer service consulting firm that works with companies such as Starbucks, Chick-fil-A, Ritz-Carlton, Nestle, PwC, Lexus, and many more. Contact him at 216-839-1430 or info@thedijuliusgroup.com.
Blueprint for Success BUILD A WINNING SALES TEAM WITH INTENTION
Written by CHRISTINA CHAMBERS
Afew years ago, I came across an article by Steve Olson (the late, longtime franchise sales leader and former publisher of Franchise Update) that challenged common myths about top sales performers and what truly makes a franchise development superstar. He said the first few hires you make can set the trajectory of your brand’s growth or stall it entirely. For franchisors building or rebuilding a sales team, the question isn’t just whom to hire, but how to build the right structure.
Here are five steps you can take to build out your franchise sales team for long-term success:
1. START WITH THE END
Before you post your first job description, get crystal clear on your growth goals. Are you awarding 20 single-unit franchises this year or positioning the brand for 50–100 awards across multi-unit packs and area developers?
The answer matters when it comes to whom you hire to recruit your ideal franchisees.
Recruiting an owner-operator who’s starting their first business looks very different than attracting a sophisticated, high-net-worth candidate who already owns multiple brands. One is motivated by independence and lifestyle, the other by scalability and portfolio growth. Your franchise recruiters must be comfortable working with those differences. Starting with the end in mind prevents you from making mismatched hires and ensures you’re investing in a team capable of achieving your unique definition of success.
2.
CHART YOUR ORGANIZATION
Once goals are defined, sketch the organizational chart that gets you there. Too many franchisors expect a single sales rep to do it all: cold calls, pipeline management, scheduling, qualification, and closing. That’s a recipe for burnout and bottlenecks.
Think instead about leverage. If you know that one franchise recruiter can manage a pipeline of 25–45 qualified candidates at any given time, work backward from your award goals. If your plan requires three times that volume, you’ll need multiple recruiters or additional support roles. Adding an appointment setter or admin can free recruiters to spend their
time where it matters, having meaningful conversations with serious candidates, instead of chasing paperwork.
By drawing out the organizational chart early, you’ll understand what seats to fill now and what roles to budget for as your brand scales.
3. PAY APPROPRIATELY
How you structure compensation can directly shape team behavior. A heavy commission plan may motivate reps to push for signings at all costs, but that can backfire by creating a sales culture instead of an awarding culture. On the flip side, a high salary with little variable pay may reduce urgency and accountability.
The key is intentionality. Decide up front what type of culture and behaviors you want to compel and build compensation plans that reinforce it. Candidates who join your team will self-select based on the compensation model, which means you’ll attract those who thrive in the environment you’re trying to build.
4. HIRE FOR SKILLS
Franchise recruiting isn’t consumer sales, it isn’t corporate B2B sales, and it definitely isn’t all about closing the deal. It’s consultative, emotional, and deeply relational. A great franchise recruiter is equal parts consultant, advisor, and guide.
Think of the hats they wear throughout the discovery process: part cheerleader, part therapist, and part accountability partner. That’s why the best recruiters aren’t always your top closers from other industries. Instead, they’re people who can build trust, listen actively, and guide candidates through a deeply emotional decision.
Traits like empathy, collaboration, and emotional intelligence matter as much as a strong sales record.
5. BUILD WITH A BLEND
In Radical Candor, Kim Scott describes two types of high performers: rock stars and superstars. Rock stars deliver consistent, reliable results and find deep satisfaction in mastering their role. Superstars are ambitious, innovative, and eager to take on more responsibility.
In an effective franchise sales team, you need both. A rock star anchors your team with predictable performance, nurtures candidates steadily, and becomes a culture carrier. A superstar, meanwhile, challenges the status quo, pushes innovation, and may eventually step into leadership. The combination gives you stability and growth potential.
Don’t make the mistake of filling your team with only one type. The magic is in the mix.
THE TAKEAWAY
Strong franchise systems are built by strong teams. Plan your strategy and hire wisely with intention. Your franchise sales team will become the engine that powers lasting growth.
Some brands embrace hybrid comp models to strike a balance by adopting a moderate base salary paired with commission tied to both franchise fees and royalties. The system rewards both the number and quality of deals signed. This alignment ensures recruiters think like brand stewards, not just salespeople.
Christina Chambers is the chief franchise officer at DOXA Talent where she leads strategy and franchise growth for the purpose-driven brand known for its Conscious Outsourcing model that helps entrepreneurs build recurring revenue businesses with integrity. Learn more at doxafranchising.com.
Private equity changes culture and boosts business
Written by PAUL WILBUR
“When a franchisor gets bought out by private equity, there is always a resounding cry of celebration by the franchisees,” said no one. On a popular franchise Facebook group, franchisees are often caught between optimism and unease.
Recently, I read this post: “The new owners are sharp with numbers, but something about the brand’s soul feels different.” Many describe a shift in culture and connection where founder-led passion and accessibility give way to structure, performance metrics, and distance from day-to-day realities. For operators on the ground, the question isn’t just about financial backing; it’s about whether the values, support, and sense of partnership that once defined their system will survive the transition.
Yet at the same time, we’ve been told by very successful franchisees that they only want to invest in franchise brands that are owned by smart money. The reason is that smart money makes rational decisions, not emotional decisions based on gut, sense of ownership, or loyalty.
Do you remember back in 2002, when the Fenway Sports Group (FSG) purchased the Boston Red Sox from the Yawkey family, which had owned the
team since 1933? FSG was a consortium of owners that included Redbird Capital Partners, a private equity group.
The team lost something of its historic hometown feel. It made unpopular trades based on budgets. The group looked far beyond the Boston market at international development opportunities. Many fans were unhappy.
And then the Red Sox won the World Series for the first time since 1918, finally breaking the “Curse of the Bambino,” which started when the team traded Babe Ruth to the New York Yankees. The Red Sox won the series three more times over the next 15 years. FSG also purchased Liverpool F.C., making it one of the largest sports groups in the world and valued at $5 billion or more.
As in professional sports, private equity’s entrance into a brand’s world tends to spark some tension between tradition and transformation, and we don’t foresee a slowdown of PE acquisitions in the near future. Most national brands and many local and regional brands on fast-growth trajectories already have investors or are being looked at very carefully. Analysts are at the emerging brand and franchisee shows to size up opportunities.
There’s no doubt that this is changing the industry. Private equity management feels quite different from founder-run brands. Franchising is an industry made up of entrepreneurs, and franchisees sometimes choose to join a system as much for the founder’s vision as for the financial potential.
Founders don’t just run a business. They want to make a difference in the lives of their customers and franchisees. They are proud of what they are selling, and that enthusiasm is shared by their franchisees.
Founder-run brands made personal connections. Decisions took the franchisee’s situation into account. For instance, many franchisors only collected liquidated damages if you had to close a unit before the end of term under egregious circumstances. A franchisee could call the founder or the head of ops and reach an agreement on how to proceed. Now, your formal written application is reviewed by a governing committee, and the outcome is a foregone conclusion.
That is not a bad thing in business. Having and enforcing policies and procedures is smart. It’s predictable. It’s fair. Disciplined processes make a business better. To improve operations, PE invests the capital needed to solve system problems. Groups invest in smart technology and add innovations that make a franchisee’s life better. And the system grows.
FRANdata analyzed several franchise systems that received private equity backing and found a consistent pattern: Average unit revenues generally increased after investment. From Tropical Smoothie Cafe to Slim Chickens, PE involvement often coincided with strong sales performance, suggesting that while ownership transitions can shift a brand’s culture, they also tend to bring operational scale and growth discipline that boost the bottom line. The long and short of it is this: Most franchises with PE managers generate more sales. Everyone likes sales.
As COO, Paul Wilbur is instrumental in building the research and consulting framework at FRANdata. He plays an integral role in the strategic development of FRANdata’s suite of franchise solutions. Nearly a 20-year veteran at the company, he is the franchise business model expert and plays a key role in fostering strategic advisory relationships with some of FRANdata’s biggest clients.
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Don’t miss the opportunity to showcase your brand at the Multi-Unit Franchising Conference—where franchisees are actively exploring new opportunities, making industry connections, and engaging in meaningful conversations on the busy exhibit hall floor.
Exhibit space is still available. Reserve your spot today to stand out in front of decision-makers and influential multi-unit owners.
This is your chance to meet prospects ready to invest, grow your brand recognition, and build strategic partnerships that last. Franchisees love this exhibit area – they can find new brands, real estate, finance and business improvement options all in one place.
“WE HAVE A BOOTH RIGHT UP FRONT FOR A REASON. WE'RE REALLY EXCITED ABOUT THE TRAFFIC WE'VE HAD SO FAR. THE FRANCHISEES ARE NOT JUST BOOTH SHOPPING, THEY'RE HERE TO TALK TO PEOPLE ABOUT GROWING. ANY FRANCHISE BRAND SERIOUS ABOUT GROWING THEIR BUSINESS SHOULD EXHIBIT HERE AND IT'S WORTH HAVING A BOOTH, HAVING A NICE BOOTH.”
Adam Contos Partner Area 15
Contact your account executive for details on sponsorship packages and year-round visibility, or call 800.289.4232, Ext. 202 or email: sales@franchiseupdatemedia.com
Ventures – Port of Subs, Daddy’s Chicken Shack
GLOBAL SCALE
Written by WILLIAM EDWARDS
Why private equity should bet on international franchising
Private equity (PE) has become one of the strongest growth engines in franchising. Over the past two decades, investors have helped modernize operations, drive scale, and professionalize management across dozens of leading brands. Yet one area often doesn’t receive the attention it deserves: international expansion.
The common narrative is that franchisors should focus on the U.S. first. After all, international markets can seem slower, riskier, and harder to manage. But that thinking misses the bigger picture. In my five decades working in global business development, including helping more than 40 franchise brands expand into 35 countries across 12 business sectors, I’ve seen how international growth transforms not only brands, but their long-term enterprise value.
I speak to this from both sides of the table because I’ve been a master franchisee in five countries and the senior vice president of international operations for a U.S. franchisor. For more than two decades as CEO of Edwards Global Services, I’ve guided brands across borders. What I’ve learned is simple: When done right, global expansion is one of the most powerful and undervalued tools for building lasting franchisor value.
ENTERPRISE VALUE
SMART MONEY
PE is fundamentally about creating measurable value for exit. International royalties are recurring, high margin, and durable. Once established, they contribute directly to EBITDA with most overhead delegated to the international licensee.
Some of the most successful PE investors in franchising have made acquiring the rights to franchises with international expansion a key aspect of their growth strategy.
royalties become steady, compounding revenue that enhances enterprise value.
Roark Capital has actively supported international growth across its Inspire Brands portfolio, including Dunkin’, Baskin-Robbins, and Arby’s.
A franchisor generating royalties from 10 or more countries isn’t just bigger; it’s stronger. International operations prove that the brand’s systems, training, and support can scale beyond domestic borders. That global proof of concept enhances both earnings and valuation multiples, which makes all the difference when it’s time to sell.
JAB Holding Company has expanded its coffee and bakery holdings, such as Krispy Kreme and Pret a Manger, across continents.
• “Political and economic risks are higher abroad.” Every market carries risk, but global diversification spreads it. When one region slows, others are growing. During periods of domestic turbulence, international markets can sustain earnings and momentum.
DIVERSIFICATION
• “International expansion distracts from U.S. growth.” It doesn’t have to. With the right structure and experienced partners, franchisors can outsource the identification, vetting, and onboarding of international licensees.
DEMONSTRATE STRENGTH
Franchising is cyclical. Domestic development ebbs and flows with consumer confidence, credit availability, and labor costs. But global markets rarely move in sync. A slowdown in the U.S. might be offset by expansion in Asia, the Middle East, or Latin America.
The Riverside Company invested in the Neighborly franchise group, which has international operations, and has demonstrated how strategic global development can enhance value across a multi-brand portfolio.
THE PE EFFECT
Private equity investors think in terms of exit value. International expansion enhances that value by:
PE investors look for scalable systems, strong leadership, and operational maturity. Successfully expanding abroad proves all three. If a brand can open in different cultures, languages, and regulatory environments, it demonstrates that its model is robust and transferable. That track record signals to buyers that the franchisor has mastered complexity, a quality that commands a premium in any acquisition.
In mid-2025, Roark Capital acquired Dave’s Hot Chicken in a deal valued at $1 billion. What makes this especially relevant is that Dave’s Hot Chicken was already expanding internationally. It had signed master franchise agreements, opened units in the Middle East, and had its first restaurant open in the United Kingdom. Thus, Roark’s acquisition is not just a bet on U.S. growth, but clearly a global growth play.
• Creating long-term, high-margin royalty streams
• Reducing reliance on the U.S. economy
UP-FRONT CAPITAL
• Proving the brand’s adaptability and scalability
• Delivering up-front fees that generate immediate cash flow
These firms understand what data and experience make clear: Global growth compounds value. International expansion isn’t an add-on; it’s a multiplier.
Unlike domestic franchising, where units grow one at a time, international expansion is often built on country or regional license agreements. These typically include substantial up-front fees that provide immediate revenue before the first royalty arrives.
• Strengthening the brand’s growth story for future buyers
COMMON OBJECTIONS
For some franchisors, the idea of going global raises immediate concerns:
Yes, global development takes time, but so does every strategic transformation.
THE BOTTOM LINE
For PE investors, that means near-term liquidity and long-term recurring income. Those upfront fees can fund technology upgrades, training systems, or marketing investments here at home, strengthening the entire system while building predictable royalty streams.
• “International deals take too long to sign.” Yes, deals abroad can take time. But one country agreement can equal years of U.S. unit development. Each deal represents a long-term growth engine, not just a single sale.
International expansion is not a distraction. It is a multiplier. It creates diversified, sustainable royalties that compound over time while up-front fees generate cash today. Leading PE firms like Roark, JAB, and Riverside have embraced this model, proving that global franchising is not just viable, but key for long-term brand growth.
TIMING
• “It takes too long to open the first location.” The first opening of a shop or restaurant in a new market can take 24–36 months, but it’s also the most important one. Once that store is open and successful, local partners have the knowledge and infrastructure to expand rapidly. The first store isn’t a delay; it’s a launchpad.
For franchisors preparing for private equity investment, or already under PE ownership, the message is clear: Start building a global footprint. The early groundwork pays off in stronger earnings, higher valuations, and a more compelling growth story when it’s time to exit. In the end, international expansion is not just about new markets; it’s about building a more valuable company.
One of the smartest strategic moves a franchisor can make is to begin international expansion before being acquired by PE. By planting international flags early, a franchisor builds momentum, credibility, and a growth narrative that’s hard to ignore. Even a few signed master licensees show proof of concept and pipeline potential, offering tangible evidence of global scalability that enhances valuation at exit.
• “Royalties take too long to flow.” While royalties follow shop and restaurant openings, initial international license fees provide immediate cash flow. Those up-front payments, often significant, bridge the timeline and create an early return on investment. Over time, recurring
William (Bill) Edwards, CFE, is the CEO of Edwards Global Services (EGS) and a global advisor to international businesses. With five decades of experience, Bill has helped more than 40 companies expand internationally. Contact Bill at +1 949 375 1896 or bedwards@edwardsglobal.com.
Personal Connections
The right tech can humanize franchise development
Written by DENNIS LESKOWSKI
Speed to lead has been a battle cry for franchise development teams. It’s treated as a holy grail of growth. The logic was simple: Whoever calls first, wins! But in today’s connected world, the real race is about who makes that first personal connection. The difference in perspective changes everything about how franchisors build relationships, engage quality candidates, and close deals.
Modern prospects aren’t just filling out web forms; they’re scrolling, comparing, and contrasting your brand with others. The brands winning the race today use technology that moves away from click to conversation and toward click to connection.
SPEED ISN’T ENOUGH
Development executives know that when a new inquiry hits the inbox, every minute matters. Data from multiple industry studies shows that 90% of texts are read within three minutes. While many systems stop at fast, the best franchise teams keep going to personal.
A two-minute text is only valuable if it starts a dialogue that feels human. “Hey Alex, thanks for checking out our franchise opportunity. When do you want to chat?” outperforms a cold, highly stylized template every time. The goal is to connect and show the people and purpose behind the brand.
THE UNSUNG HERO
Email is where leads go to nap, and voicemail is where they go to die. Texting is where conversations wake up. It’s fast, personal, and natural. Candidates already text with family, friends, and co-workers. A well-timed text from a franchise brand fits with prospects’ normal communication habits. Texts can be automated based on trigger events such as a form submission or a missed call and still read as if a live person wrote them. The power is in pairing automation with personalization.
Imagine a lead submits interest in owning a fitness brand at 9:02 a.m. At 9:03, they receive a personalized
text: “Hey Jordan, it’s Sam from FitFuel Franchise. Saw your note about Michigan locations. Want to jump on a quick call or video chat later today?”
Jordan replies, and within seconds, the system pulls up Sam’s calendar link. With one tap, Jordan books a 15-minute video chat. The process feels effortless and immediate, yet automation handled 90% of it.
That’s speed to connection.
CALENDAR INTEGRATION
Most franchisors underestimate how much friction hides in scheduling. Missed calls, back-and-forth emails, and time zone confusion kill momentum faster than a weak value proposition. Integrated calendar tools eliminate that friction.
A development rep or franchise broker can embed real-time availability into any text, email, or landing page. When a candidate books time, both sides receive confirmations and reminders. The system can adjust messaging based on the lead’s location, offering time slots that match their time zone.
Connection thrives on momentum. The more time between first touch and a face-to-face or screen-to-screen conversation, the colder the lead. When scheduling happens instantly, curiosity turns into commitment.
AI TEXTING
The newest frontier in franchise development isn’t replacing humans with AI; it’s augmenting them. Intelligent automation can now detect whether a lead has replied, analyze sentiment, and adjust follow-up cadence accordingly.
If a prospect texts, “I’m on vacation. Can we talk next week?” the system pauses the cadence and resumes automatically when that date arrives. If a message goes unanswered, AI can craft a reengagement text or suggest a short video message to rekindle interest.
AI communication is evolving fast. Phone, email, and text each play a role in franchise engagement,
but texting often stands out for its immediacy and authenticity. Studies show that people often can’t tell the difference between a human texter and an AI texter.
For franchisors, this means no lead falls through the cracks. For candidates, it means they receive timely, relevant communication that feels personal without realizing automation is behind it.
The technology isn’t about removing people from the process; it’s about making sure the right person shows up at the right time with the right message.
IN PERSON
Even with the best automation, franchise development will be a human-to-human business. The first video call, the discovery day handshake, the on-site tour—those are still the moments that seal belief and trust. Technology’s job is to get us there faster and smarter.
By automating introductions, reminders, and nurturing, development reps spend less time chasing and more time engaging. Rather than set it and forget it, franchisors automate it and amplify it.
When you free people from repetitive tasks, you free them to do what technology can’t: listen deeply. The most successful franchisors use that time to understand what truly motivates a candidate, whether it’s legacy, lifestyle, or location, and tailor every conversation around it.
RELATIONSHIPS
Franchise development is evolving from a numbers game into a relationship game. It’s no longer about the faster dialer or the bigger CRM database. It’s about how fast you can turn curiosity into conversation and conversation into connection.
When designed thoughtfully, technology doesn’t distance us; it brings us closer. New platforms are showing that the next era of franchise growth will belong to the brands that master this blend of automation and authenticity.
In the end, the best lead isn’t the one you reach first. It’s the one who feels seen, heard, and excited to meet you.
Dennis Leskowski is an author and speaker. He advocated for technology during his career in franchising. He is the chief product officer for ClientTether, a franchise-specific CRM with automated sales channels.
The Year of Discipline
GROWTH IN 2026 WILL REWARD PRECISION, NOT HOPE
Written by ART COLEY
If you thought 2025 was a grind, buckle up because 2026 is shaping up to be tougher, sharper, and more demanding in the world of franchise recruitment. There’s no such thing as an easy year in this business, but every few cycles, we hit a year that separates the disciplined from the distracted. The coming year will separate the brands that manage recruitment from those that let recruitment manage them. It will stretch your systems, expose weak habits, and test your commitment to execution.
If you understand what’s coming and prepare the right way, you can grow through it. The brands that measure, track, and refine every step of their process will gain ground. This is the year to lean into discipline, precision, and accountability like never before.
LEAD GENERATION
It’s going to cost more to make the phone ring and fill the funnel. Period.
Most brands do not have a lead problem. They have a discipline problem. Marketing can’t be treated like a campaign anymore. It’s a daily operating system that must be tracked and managed. The best teams know their real-time numbers: cost per lead, cost per Step 1 call, and conversion by source.
Discipline is what separates world-class brands from average ones. The teams that win hold weekly reviews, track response times in minutes, and stop what isn’t working. It’s time to:
• Treat marketing as an operating system.
• Track cost per Step 1 call, not just cost per lead.
• Measure response time every week; cut what doesn’t convert.
Focused brands don’t chase leads. They close them.
Art’s Quick Hits
HALF OF YOUR MARKETING WON'T WORK. FIND WHAT DOES.
CONVERTING
Most brands are sitting on a gold vein of leads they never convert. In 2025, many brands had fewer than 1% of inquiries turn into a Step 1 call, a genuine 45 to 60-minute discovery conversation. That’s a major problem. You should be hitting at least a 20–25% conversion rate from lead to Step 1. Anything less than 20% is a problem.
You can’t fix what you’re not tracking. To improve conversion rates, start with the basics:
• How fast are you following up?
• Are you using text, email, and phone together with proper scripting?
• Are you nurturing prospects with information before the call?
The biggest opportunity is not in new lead sources. It’s in the gap between the leads you already have and the appointments you’re not getting. Close that gap to see faster growth and better franchisee quality.
STEP 1 TO SIGNING
Next year will demand a skilled franchise development team. Today’s candidates expect professional, knowledgeable conversations. Recruiters must understand the economy, the industry, and what makes their brand stand out.
Too many have not read their FDD. They don’t know what’s in Item 20. They couldn’t explain Item 19 if their careers depended on it. If you don’t have an Item 19, good luck. If you do have one, ask how strong it is. Is it a C, B, or A? Can a candidate use it to build a simple proforma? That’s what serious candidates expect.
The best teams know their data, understand their documents, and show up with authority and transparency. That combination of credibility and preparedness turns qualified candidates into signed franchisees.
IF YOU'RE NOT TURNING 20–25% OF LEADS INTO STEP 1 CALLS, FIX IT NOW.
ONBOARDING
It’s a mistake to stop paying attention after the agreement is signed. Onboarding is where the real work begins. What happens to a new franchisee in the first 24 hours? The first week? The first month? The first three, six, 12, or 24 months? For some brands, onboarding can last up to 36 months depending on the model.
If you haven’t broken it into clear stages with benchmarks, you are in the dark. Onboarding is about setting minimum expectations that every new franchisee can hit. If 80% or more of your new franchisees aren’t reaching those minimums, something is wrong in recruitment or onboarding.
In 2026, onboarding might be your biggest competitive edge. Franchisees want to know how long it will take to open, to get cash flow, and to start earning. They want to know when they can live the life they left corporate America to achieve. Brands that answer those questions with confidence will win.
GOOD NEWS
More people than ever want to start their own business. Capital is available. Lenders are lending. Opportunity is everywhere. But the easy days are gone. If you’re just showing up, winging it, and hoping last year’s methods will work, you will struggle.
In 2026, winning brands will commit to worldclass execution in lead generation, Step 1 conversion, sales, and onboarding. They’ll track, measure, and improve every week.
Let’s go to work!
Art Coley is the CEO of CGI Franchise. Using the proven Recruitment Operating System (ROS), Art and the ROS team help franchise companies implement and execute a predictable, repeatable, and sustainable franchisee recruitment program. The company is based in Temple, Texas, and works with brands worldwide. Contact Art at 281-6589409 or acoley@cgifranchise.com.
YOUR SALES TEAM SHOULD KNOW YOUR BRAND, FDD, AND DATA.
ONBOARDING ISN'T SOMETHING YOU DO AFTER THE FACT; IT'S WHAT MAKES YOU STAND OUT.