Navigating Uncertainty: Franchise brands must be prepared to change

As CEO of CGI Franchise, I’ve witnessed firsthand how the landscape for franchise development has shifted dramatically in recent years. We’re living in an era of rapid change and increasing apprehension, presenting unique challenges for franchise brands in attracting and retaining quality candidates.

The world has experienced significant upheavals in short succession: the Covid-19 pandemic, geopolitical tensions, inflation concerns, and the looming impact of artificial intelligence. These events have compressed what used to be longer periods of stability into shorter, more volatile cycles.

My wife and I have been remodeling our home. It is situated in the historic district of Temple, Texas, and it’s seen several facelifts in its almost 100-year history. Before remodeling, I did not notice how dated our home had become. But it’s incredible how much our home has changed with a bit of fresh paint.

Often, we don’t truly see the need for change until we commit and start making changes. In franchise development, we no longer get the luxury of having a good seven to 10 years before we need to “repaint our rooms” or adjust our approach. This rapid pace of change means that franchise brands must be prepared to revisit and adjust their recruitment strategies more frequently than ever before.

These shifts have profound implications for franchise recruitment. It’s going to take more resources and more energy in 2025 to get the same number of signings as in past years. This includes increased budgets, more intensive training, and potentially new team members. With remote work becoming more common and work-life balance a growing priority, candidates are asking different questions and seeking different assurances from potential franchise opportunities. With household incomes not keeping pace with rising costs in education, housing, and healthcare, potential franchisees are closely scrutinizing the financial opportunities presented by franchise brands.

In this volatile environment, I can’t stress enough the critical importance of having a robust, well-defined franchise development process. If a brand leader is reading this article and doesn’t have a defined, documented, and proven process, you are in trouble. A solid process provides stability and adaptability in uncertain times. It allows franchise brands to consistently evaluate and adjust, maintain quality, and adapt efficiently.

While the core structure of your franchise development process may remain constant, I suggest several areas where brands should focus their adaptation efforts:

• Messaging and positioning. Ensure your communication reflects current realities and speaks to candidates’ present concerns. This includes updating website content, email campaigns, and recruitment materials.
• Franchisee testimonials. Leverage current franchisee experiences to show how your brand has adapted to recent challenges and opportunities.
• Appointment setting. Refine how you engage with interested candidates, recognizing that you’re competing for attention in an increasingly noisy digital landscape.
• Financial discussions. Be prepared to have in-depth conversations about the financial opportunity your franchise presents with clear ties to your Item 19 disclosures.
• Discovery days. Prepare your leadership team to address AI, remote work, and potential regulatory changes during candidate interactions. 
• Onboarding. Consider how you can incorporate flexible, remote options into your training and onboarding processes. Faster ramp-ups with unit sales and profitability are huge.

While these necessary adaptations may seem daunting, I see opportunities for brands to get it right. The brands that get this right are going to win. By leveraging a strong process and adapting to the current landscape, franchise brands can differentiate themselves and attract high-quality candidates even in uncertain times.

Moreover, brands that push against downturns by investing in their processes and adapting their approaches often emerge stronger than before the troubles. The key is having the right tools and mindset to navigate challenges. In this era of exceptional change, franchise brands will thrive by embracing adaptability while maintaining a strong core process. 

Remember, you’re not throwing your structure and process overboard. You’re stepping within and saying, “How are we attracting candidates? How are we nurturing them to warm them up so that they will engage and become a candidate in our process?”

By maintaining this balance of stability and flexibility, franchise brands can navigate uncertainty and position themselves for long-term success in franchise development. The future may be uncertain, but with the right process and mindset, it’s full of opportunity.

Let’s go to work!

Art Coley is CEO of CGI Franchise. Using the proven Recruitment Operating System (ROS), Art and the ROS team help franchise companies implement and execute a predictable, repeatable, and sustainable franchisee recruitment program. The company is based in Temple, Texas, and works with brands worldwide. Contact Art at 281-658-9409 or [email protected].