Advice for Franchising During “Interesting Times”

In this article published on Entrepreneur.com, iFranchise Group CEO and expert franchise consultant Mark Siebert reminds us that economic slowdowns have usually proven to be good for franchise expansion. And, as we move toward a new year, growth should be on every franchisor’s mind; but growth for growth’s sake is not viable in today’s unprecedented, “interesting” economic times. A smart, strategic approach is merited.

The current economic climate is like nothing we’ve seen before: rising inflation, low unemployment, continued staffing and supply chain issues, growing wages and stock market volatility all make for a set of circumstances that should give even the most experienced business professionals pause.

But these factors are why it’s more vital than ever for franchise companies (whether those looking to franchise a business for the first time, or those looking to improve their current systems) to regroup, redirect and recommit to their brands in order to effectively attract franchise buyer candidates. The good news is, given everything that’s been happening in the economy, there is a large group of potential franchise buyers to be targeted.

That said, franchise companies will need to make sure franchise manuals and franchise marketing materials are up to date and compelling, and that support staff and sales reps are well trained and incentivized.  They’ll need to revisit and, if necessary, redefine franchise marketing messaging, targeting and budgeting.

Whether a company chooses to stay the course, looks for ways to streamline, or plans dramatic changes in overall strategic direction, it is more important than ever for franchisors to consistently be working on shoring up the overall franchise offering, its systems, documentation, messaging and culture. This ongoing due diligence and continuous improvement should help franchisors navigate these “interesting” times, as they hopefully transition into to a stable, new normal.