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Selling franchises is one thing. Getting them open, keeping them profitable, and helping operators succeed are where the real challenges are.
That distinction drove much of the conversation at the five-hour CEO Summit held on October 5 during the 2026 Franchise Leadership & Development Conference (FLDC) in Atlanta. More than 50 franchise leaders gathered to tackle some of the industry's biggest challenges, from tightening margins and slowing development to private equity's growing influence and changing consumer behavior.
IFA President and CEO Matt Haller opened the afternoon by identifying franchisee satisfaction as a top concern for franchisors. He outlined the association's priorities, including protecting the franchise business model, expanding research, and strengthening advocacy.
Haller and IFA Chief Advocacy Officer Mike Layman then sat down to discuss the IFA’s government relations efforts, including the American Franchise Act, which seeks to establish clearer federal joint-employer standards, and the upcoming mid-term elections. Layman urged franchisors to build relationships with elected officials and encourage franchisees to do the same.
Much of the afternoon focused on what franchisors can control: helping their operators make more money.
Ricky Richardson, CEO of Eggs Up Grill, and Tom Wood, president and CEO of Floor Coverings International, shared their approaches to improving unit-level economics.
Richardson credited Eggs Up Grill's improved average unit volumes and profitability to a clear brand identity, strong franchisee relationships, better data, and attention to costs.
“Absolute clarity with who the brand is, good relationship with franchise partners,” he said. “We listen and learn from our franchisees.”
Wood described a more numbers-driven approach. Floor Coverings International sets specific performance and growth expectations for franchisees and tracks their financial results through standardized reporting. Regular reviews and peer benchmarking help operators identify problems and improve performance.
The message? You can't improve what you don't measure.
That focus on franchisee performance then carried into an interactive session led by Emma Dickison, president and CEO of Home Helpers Home Care, and Charles Watson, CEO of Smalls Sliders and former CEO of Tropical Smoothie Cafe.
They walked attendees through the “franchisee lifecycle,” from recruiting prospects and awarding franchises to opening locations, scaling operations, and eventually exiting the system.
Dickison compared the process to a marriage. Recruiting is dating. Signing the franchise agreement is getting married. Training is the honeymoon. Then comes the hard part: making the marriage work.
Executives broke into roundtable discussions to answer questions and share solutions for challenges at each stage, including selecting the right franchisees, managing development timelines, improving training, and helping struggling operators.
The summit then turned to some cold, hard numbers. Mark Calvillo, chief product officer for FranConnect, warned franchisors about celebrating strong development pipelines.
“Your pipeline is lying to you,” he said.
Drawing on data from more than 500 franchise brands, Calvillo reported that the average backlog of sold but unopened units had reached 11.6 months, roughly double the level two years earlier. Tight credit, rising construction costs, and limited real estate availability are slowing openings.
His advice was straightforward: Measure backlogs in months, not units. Reward openings, not signings. And focus field support on franchisees who need it most.
Private equity seems to be everywhere these days, and the CEO Summit was no exception. A panel of multi-unit franchisees discussed how PE ownership has brought additional resources and professional management to some brands while creating friction over higher fees, centralized marketing, and reduced franchisee input. The panelists included Sam Ballas, founder and CEO of East Coast Wings & Grill, Sammy’s Sliders, and myFrii; Mitch Cohen, a Jersey Mike’s Subs and Sola Salon Studio franchisee; Nick Marco, a Hand & Stone Massage and Facial Spa, Drybar, and Sweat440 franchisee; and Wes Snyder, a Fastsigns, My Salon Suite, and Pirtek operator.
Their key takeaways were simple: Communicate early, explain decisions, and keep franchisees involved. “It all comes down to alignment and transparency,” said Ballas.
To wrap up the day, researcher Kyle Dropp, president of Morning Consult, brought his insights on consumer confidence, artificial intelligence, and brand trust. He reported that consumers remain concerned about rising prices and noted that dining out is the most common expense households cut.
Despite those pressures, he said, consumers continue to place considerable trust in small businesses and franchise brands.
The afternoon covered plenty of ground, but the conversation kept returning to a key point: Franchise growth means little if franchisees aren't succeeding.
Signing agreements may build a pipeline. Opening profitable businesses builds a franchise system.