In the opening article of this series on franchising, where we’re unpacking insights from this year’s QSR Best Franchise Deals Council, we addressed the high-level view. Now, we’ll get into what’s separating the winning franchisors from the struggling ones. Next up will be a dive into what to look for when it comes to making the right investment.
As a reminder, the full Best Franchise Deals Report for 2024 can be explored here.
Graham Chapman, CEO, ZorForum
Those who are winning are eager to solve the questions/conundrums facing the industry. They have built authentic cultures, core values, and operating principles. They were early adopters, and now champions, of AI and robotics. They have always prioritized responsible and sustainable system growth. They are laser focused on boosting systemwide sales and enhancing unit level economics. They proactively test and introduce trendy LTOs, modern design upgrades, technology enhancements, etc. that keep the brand moving forward.
Jonathan Hill, cofounder, Morrow Hill
In today’s fast-paced market, successful franchisors can excel with a few key real estate strategies. Strategic site selection is crucial. Successful franchises target prime locations with high foot traffic and visibility, which is vital in a competitive landscape. They also adapt their store formats to fit various types of properties, whether in bustling urban centers or suburban neighborhoods.
Building strong relationships with landlords gives these franchisors an edge in securing the best spots and negotiating favorable lease terms. They leverage data-driven market analysis to pinpoint the best areas for expansion and anticipate future growth opportunities.
By staying proactive in securing prime real estate and continuously optimizing their location strategy, they position themselves for long-term success in the evolving franchise world.
Marcia Mead, president, M Squared Franchise Consulting
Many factors separate franchisors at the front of the pack such as innovation, integrated technology, and brand recognition. However, all roads lead to successfully measured KPI’s and profitable franchisees. Winning franchisors are providing comprehensive training, continuous education, and robust support ensuring franchisees have a clear path to profitability.
Tim Parmeter, founder and CEO, FranCoach
Show me a struggling business in any industry and I will show you an example of poor leadership. How do you know this when you are vetting a franchise. Oftentimes you can simply trust your gut during your interactions with their leadership team. Also, look for turnover in the franchisor. If there is a constant churn this may be an indicator that the leadership is suspect. After all, people don’t leave jobs, they leave bosses. Even though you are a franchise owner, not an employee, you still need the franchisors team to help support you towards a successful business. If it is a revolving door at the headquarters, there will be more pressure on you to figure things out by yourself rather than the support you bought in to.
Michelle Rowan, president and COO, Franchise Business Review
Our data shows franchisees want support in finding, developing and retaining great employees. Franchisors that support the network and give franchisees a competitive advantage in their markets on how to find and KEEP great team members. Tools to help hire, engage, and grow unit employees will separate them from the rest.
Matt Martin, CEO, RocketBarn
Winning franchisors are investing in technology and operational efficiency improvements to bolster profitability wherever possible and to allow for greater agility in the face of potential future challenges. Many successful brands have also invested in effectively connecting with their customers through the growing health and sustainability trend, to ensure their customers feel good about their purchasing choices and connection to a business that shares some of the values they deem are generally important in today’s world. Equally as important, winning franchisors are investing heavily in effective training and ongoing support for their franchisees.
Stan Friedman, cofounder, CDO, ZorForum, LLC
In large part, ATTITUDE. Victims or victors … it’s a state of mind that will significantly impact the of the business. Good people don’t stick with losers, so it is incumbent to inspire teams though your leadership. Innovators are turning lemons into lemonade, reinventing themselves, their footprints, their menus and are as mindful of the digital experience they provide, as they are of their on-premises experience.
