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Growth is on the horizon for franchising in 2024 — at least if recent hiring trends at executive search firm Careertopia are an indication. In fact, you might view early hiring trends as a leading indicator as franchisors from food to health & fitness to service brands gear up for growth in the coming year.
“I predict 2024 will be a big year for development roles,” says Sean Falk, president of the franchise-only executive search firm. Development executives tend to stay in development roles for 3 to 5 years, he says. Many were laid off or shifted roles during the Covid years as development slowed and brands focused on operations and, in some cases, survival.
Today, four years since Covid arrived in early 2020, we’re now in that time frame for frandev turnover. Based on both history and recent requests Careertopia is receiving for franchise development leaders, Falk foresees a lot of action ahead in 2024 as franchise executives and leaders begin to move around. And when one domino falls, he says, they all start to fall as franchisors lose and replace upper-level corporate personnel.
“Unfortunately, some franchisors will lose some very talented development people and should begin to plan for this contingency,” he says.
In just the first three weeks of January, Careertopia has inked five new contracts for executive searches — not only for franchise development executives, but also for operations leaders.
“Our biggest concentration of specific franchise talent is in the development field. However, in the past few months we’ve seen a lot of action in operations roles,” Falk says, as companies seek to reduce operating costs both at corporate and for franchisees. “We fill roles from CEOs and brand leaders all the way down to directors, but our sweet spot is the C-suite and VP leaders.”
Careertopia was founded in 2019 as GT&S by co-founders Gary Gardner, Chairman of Franchise Update Media, Tom Portesy, former President and CEO of MFV Expositions, and Scott Lehr, former Executive Vice President at the IFA. In late 2022 the company renamed to Careertopia.
“Collectively, the four of us have more than 120 years in franchising. We know a lot of people, and between the four of us attend every franchise conference and convention to renew our existing relationships and build new ones,” says Falk, who joined the firm in 2022 as President and COO.
Some good news for franchisors looking to hire at this level, he says, is that the salary inflation seen from late 2022 into 2023 has settled down. “Salaries for these roles are no longer jumping 10–20% and are flattening out.”
Finally, on the theme of companies focusing on their core strengths and capabilities, Falk says, “Why should a leader of a brand spend their time looking for people? Instead, let us whittle it down to a handful of outstanding candidates for them to review.”
For more information about Careertopia, email seanfalk@franchiseexecutivesearch.com or call 313-399-4291.