Coffee & Analytics: What We’ve Learned in 2023 and Our Top 10 Predictions for Franchising in 2024

In this month’s analytics note, I wanted to give you a list of things I am seeing in franchising. These are just thoughts – and would welcome them back.

1. Over the last two years we have collected more than 1,000 franchisee profiles. The data remains the same (thus, we are going to revise the questions in 2024). Buyers buy into franchising for two reasons: Business model and culture/brand. Buyers become franchise owners for family — whether legacy, time or impact. Buyers struggle with the confidence side of being on their own. Buyers are taking 6.4 months to mature from idea to lead – less than $150,000 faster over $500,000 much slower.

2. We are not evolving fast enough. Even though the above information is steady, we are not building our What is Franchising Guides; or How Our Brand Stands Out; or How We Lift Your Business Confidence. This will have to change in 2024. Why? The brokers have done this on a macro level, thus, are taking your leads before they get to you. You will want to turn up organic.

3. Let’s go back to pre-pandemic (not even far beyond that). Buyers have more tools than ever to research the right opportunity for themselves. They are equipped with tons of information. Thus, you have to elevate your online presence. 

4. PR will always be credibility – but rarely lead generation (or immediate gratification). What we have found, through correlation, is that you want a frequency component — 1X/Week in the media. That’s the goal to best impact brand sentiment and lead awareness impact.

5. The brokers are getting very expensive and transparency is coming. You shouldn’t have to pay giant amounts. You should certainly have to pay for lead generation, but not too much where you are left with fewer resources to impact the franchise buyer. We are trying to solve this with www.1851growthclub.com.

6. However, the broker/consultant community has done a tremendous job at situating themselves at the top of the funnel – especially for brands that don’t have immediate dream-factors (fall in love with the product). 

7. Everyone wants more leads. There is no doubt about it. But very few brands are really looking at the indicators holistically. From the construct of the business offering to the marketing approach to the nurturing plan. We are going to amplify the solutions in 2024 to help you get there.

8. 2024 could be turbulent. A Presidential election always creates angst. Mix in uncertainties with the economy. I beg you to stay the course. Remember, franchise buyers come out of the woodwork when they are afraid for their jobs. They see business ownership as a more stable approach to paying the bills.

9. I truly believe in the rule of three – make sure your candidates can afford three locations. You don’t necessarily have to sell them a three-pack, more so make sure they are financially equipped to not stress out about the ups and downs.

10. Above all, just be nice. Our competitors have taken a brash approach to saying 1851 doesn’t work (it’s storytelling, how can it not work?); or our approach doesn’t work. I promised all of you from the very beginning that we would always make data-backed decisions and go on a mission to delight you. Competition is healthy. There is enough business for all.

But, this raises our need, as a business, to show you better. We want transparency in what we can do better — in service, relationship, strategy and results. We are going to continue to invest and over invest in the client experience. We are not perfect, but we are on a mission to give you above and beyond. We appreciate you.

Happy holidays and take a minute to enjoy the people around you. At the end of this lift, we won’t be worried about how many franchises we sold. We will care about the people we impacted and those who impacted us. Find gratitude. I have for you.