The Top 10 Things We Learned About Franchising in 2019

2019 was a big year in franchising, and 1851 Franchise published thousands of articles covering every aspect of the industry. Here are some of the lessons we learned along the way:

1. Treat B2B Marketing Like Consumer Marketing

In the franchise industry and beyond, consumer marketers have paved the way for how to spend money to focus a message on the user. B2C marketers understand call-to-actions and KPIs. Franchisors should keep the B2C approach to marketing in mind when developing their B2B strategy, making consumer-facing adjustments that will hopefully help deliver the message of the brand to the right audience of franchise prospects, in the right places.

2. Data Can Be Deceiving When it Comes to the Competitive Set

Far too often, growth goals are set based on an unrealistic data set. When it comes to the competitive data set, franchisors need to be very wary of creating incorrect growth strategies based on that of their competition. For example, Chick-fil-A is winning because it doesn’t look at anyone as its competitor, while Burger King's marketing, on the other hand, is indicative of a brand running scared. When a brand ignores the competitive set, markets around their strengths and builds strong persona targeting—they win.

3. Allow Your Franchise Leads to Stay Incognito

Now, in the age of the internet, candidates want to go through the discovery process at their own pace. If leads want to remain incognito, franchisors need to provide them with all the materials they want online, including costs, advantages, comparisons and reviews. More than ever, it is vital that this information is made easily available over social media platforms, PR, development websites, etc.

4. The Future of PR is Content Marketing

While PR used to be all about helping franchise brands get their messages out in any way possible, the future of PR is targeted content marketing. Now, PR is not about tons of placements, it’s about the right headlines that connect with the right personas. Just like franchise development, PR is now digital, data-based marketing. It is this evolution where franchisors can do amazing things with fewer successes. For example, the right approach to social media content is proving to be one of the most powerful marketing tools available to franchise brands.

5. The Discovery Process Is Longer Than Ever

Today, the franchise candidate’s journey has changed drastically. While there are plenty of suppliers willing to sell leads, franchise development teams need to accept that quality leads take time to come to fruition. Leads are not applications, and applications are not deals. Franchisors need to be there to answer a candidate’s questions because trust and comfortability are what sell franchises the best. More so than ever, prospects are in charge of the deal and the pace. Push them too hard and they will get scared. 

6. The Right Response Could Be the Key to Successful Lead Qualification

Not all prospects are created equal—thus, franchisors shouldn’t treat them that way. Those with money, who want a call, should be treated one way. Those without money, who are not ready to buy, should be treated another way. Those who are kind of qualified and ready to buy should be treated another way, too. Understand that different personas deserve a different type of engagement. Also, franchisors need to respond quickly to questions if they want to win over today’s franchise candidate. 

7. To Find the Next Great Concept, Don’t Judge All Books by the Same Cover 

Success in franchising, or any business, means going beyond the surface-level characteristics of an investment and taking serious risks. Just because brands align in a category doesn’t mean each brand is created equally. The best buyers look at several things after picking a category—depth of leadership; depth of product; depth of investment; depth of territory availability; and depth of validation. Each of those categories creates similarities, yet due diligence is so vital in uncovering the right franchise opportunity.

8. Don’t Chase Leads, Chase Deals

Finding great leads is about quality over quantity. Today’s buyer takes their time, reads reviews and does their homework. They get ready to buy and then they decide when they buy. Instead of chasing cold leads, franchise brands should focus on growth. Since there is no one-size-fits-all plan for lead generation, brands need to prioritize their value proposition and be smart about the process, creating credibility, strong storytelling and validation. This way, the right candidates will be drawn to the opportunity. 

9. The Current Economy is an Employee-run Economy

The current economy is an employee-run economy—jobs are plentiful and therefore employees are controlling the process. This employee economy leads to several challenges for franchisors, franchisees and employees. For example, an economy in which the employee has the leverage leads to workplace ghosting, negative Glassdoor/Yelp reviews, lack of differentiation for job applications and more. 

10. Put Culture First and The Rest Will Follow

Brand culture has a huge impact on the overall happiness and financial gain of a franchise system. A clear vision and purpose creates happy franchisees and should be protected by a strong leadership team that understands the value of what they are doing. Culture ends up being the most expensive threat to a business. For example, a bad culture at a restaurant and the customers are treated to a subpar experience. A subpar experience leads to neutral or negative reviews. A three-star rating leads to a limited chance of success. Financial gain, therefore, lives 99% in the culture.