2 minute read
LESSONS FROM PAST AND FUTURE
Dr Callum Floyd of Franchize Consultants takes a franchise-focused road trip.
In February 2025, I embarked on a 2,200-mile road trip across the southwestern U.S. on a Harley Davidson, blending my passions for motorcycling and franchising. My journey explored the industry’s history, before leading onto countless insights at the International Franchise Association (IFA) Convention in Las Vegas.
A journey through franchising history
The trip began in San Bernardino, California, at the site of the first McDonald’s. This is where Richard and Maurice McDonald pioneered fast-food franchising. It was a reminder that great unit economics, innovation-based operational efficiency, and brand identity are the foundation of every successful franchise.
In Sierra Vista, Arizona, I visited the first McDonald’s drive-thru, a concept born from necessity that transformed the company’s business model. Today, AI-driven ordering systems and automation reflect the same drive for efficiency, while preserving the customer experience.
I stopped at unique franchise landmarks: The UFO-shaped McDonald’s in Roswell, New Mexico, and Twisters, in Albuquerque – famous for its Los Pollos Hermanos branding in Breaking Bad. These sites highlighted, for me, the power of branding and storytelling in creating a devoted following.
My return to Las Vegas was via Route 66 and included a stop at the Wigwam Motel in Holbrook, an early franchised accommodation brand. While many have disappeared, those that remain prove the marketing power of heritage and nostalgia.
Insights from the IFA Convention
After five days on the road, I arrived at the IFA Convention. Topics centred on technology, economic resilience, and evolving franchise strategies.
AI and Automation – Franchises are adopting AI-powered marketing, customer service bots, operational processes and analytics, and training, to enhance efficiency and scalability.
Franchisee Profitability – Unit-level economics, return on investment, and sustainable business models ensuring long-term success.
Attracting Franchisees – Successful brands leverage storytelling, AIdriven social media, personalised to engage potential franchisees.
Economic Uncertainty – With rising interest rates and shifting markets, franchises emphasising resilience and predictable returns stand out.
Bringing it back to New Zealand
This trip reinforced a core lesson: Franchising success relies on a strong foundation, while balancing history with innovation. Whether launching a new franchise or expanding an established brand in New Zealand, the same principles apply — strong unit-economics, efficiency, brand consistency, customer-centric innovation and change management. By embracing change while maintaining scalable systems, franchisors can build resilient, future-proofed businesses.
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