Tag: franchise growth

Building the American Dream Locally

Why Local Franchise Brands, clustering, and deliberate franchising will define the future of entrepreneurship.

There’s a hard truth in franchising that too often gets ignored: you don’t build a national brand first and hope it works locally… you prove it locally first, then earn the right to grow. And yet, across the industry, the instinct to scale continues to outpace the discipline to validate. It raises an uncomfortable but necessary question: Have we, in many cases, confused expansion with success?

Why is it that so many brands feel compelled to franchise before they have truly earned the right to do so? Why is growth still so often measured by the number of units sold rather than the strength of the markets built? Why do we continue to see systems introduced into franchising with limited operating history, incomplete infrastructure, and unproven economics, only to watch them struggle under the weight of their own ambition?

Developing as a local brand should not be viewed as a temporary stage on the way to something bigger. It should be the strategy. Not because it is easier, but because it is harder and because it forces the kind of discipline that sustainable growth demands. The alternative, launching into franchising with the expectation that the model will somehow refine itself across multiple markets, is not strategy at all. It is hope. And hope, no matter how well intentioned, has never been a substitute for execution.

The local-first approach changes the entire trajectory of a brand. It shifts the focus from expansion to establishment, from projection to proof, from vision to validation. It asks a brand to answer the questions that truly matter before asking others to invest in the answers. What actually drives revenue? Where do margins hold, and where do they break? What does it take to deliver a consistent customer experience day in and day out? How does the operation perform not once, but repeatedly, under real-world conditions?

These are not theoretical exercises. They are realities that can only be understood through time, repetition, and pressure. And that is where the concept of clustering becomes not just relevant, but essential. The goal is not to open as many locations as possible in as many places as possible. The goal is to build density within a market, to create presence, to become known. There is a profound difference between a brand that has one location in five cities and a brand that has five locations in one city. The former is visible. The latter is embedded.

And this leads to a question that challenges one of the industry’s most common assumptions:

Who says a brand must expand nationally to be successful?

Who cares if a brand doesn’t expand nationally if it is able to saturate a local market?

Is having 20 units scattered across 15 states better than having twenty across the Greater Houston Area?

Think about the ability to support those franchisees.
Think about the strength of brand awareness.
Think about marketing efficiency and local dominance.
Think about operational consistency and leadership accessibility.

And then think about what comes next.

Because once a brand truly owns a market, once it has built density, awareness, and operational strength, it is no longer guessing how to grow. It has a blueprint.

So what happens when that same model is taken from Houston to Dallas?

What happens when another 15 to 20 units are developed with the same discipline, the same clustering strategy, the same focus on saturation before expansion?

Isn’t that a far more powerful form of growth?

And can you get any more “local” than that?

When a brand builds in clusters, it accelerates learning in a way that scattered growth never can. Operational challenges are identified and addressed more quickly. Training systems are refined through repetition. Leadership is developed with intention. Marketing becomes more efficient, more targeted, more impactful. Most importantly, brand awareness begins to take hold. The business moves beyond being a place people try and becomes a place people return to, recommend, and rely on. It becomes part of the community

A Local Franchise Brand is not defined by how many units it has, but by how deeply it has penetrated its market. It is defined by whether the community recognizes it, trusts it, and supports it. It is defined by whether the operation performs consistently across multiple locations and whether the infrastructure exists to support continued growth without compromising quality. If those elements are not yet in place, then the question must be asked, why expand?

Too often, franchising is treated as a milestone, as if the act of franchising itself somehow validates the concept. But franchising is not validation. Validation comes first. It comes from building something that works, something that holds up under pressure, something that can be repeated with confidence. Only then does franchising become what it is meant to be, a multiplier of success, not a mechanism for discovering it.

This is where the transition from Local Franchise Brand to Emerging Franchise Brand truly occurs. It is not triggered by reaching a certain number of units or entering a certain number of markets. It happens when a brand has developed the strength, the systems, and the self-awareness to replicate itself intentionally. When it can take what has been built in one market and apply it, with discipline, to another. When it understands not just what it does, but why it works.

At that point, expansion is no longer a gamble. It is a strategy.

And in this moment, that strategy carries even greater significance. As we move into Q2 2026, we find ourselves just one quarter away from America’s 250th birthday. It is a milestone that, at its core, represents far more than history. It represents the spirit of entrepreneurship that has defined this country from the beginning, the belief that individuals can build something of their own, create opportunity, and contribute to their communities in meaningful ways.

But it also forces us to confront a difficult reality. Is that dream still as accessible as it once was? Or is it, as many have suggested, slipping out of reach?

Just yesterday, March 31, 2026, JPMorgan Chase announced its American Dream Initiative, an expansion of its commitment to local economic opportunity, with a goal of helping 10 million small businesses thrive. As Jamie Dimon stated, “The American Dream is alive, but it’s slipping out of reach for too many people—and for future generations.” That observation is not just economic. It is deeply entrepreneurial. Because access to business ownership, particularly at the local level, remains one of the most powerful pathways to restoring that dream.

And this is precisely where International Franchise Association’s Franchising Means Local Initiative takes on even greater importance.

Franchising has always been local, but the industry doesn’t always act like it.

Every franchise location is locally owned. Every franchisee is part of their community. Every unit creates jobs, supports local economies, and contributes to the neighborhoods they serve. The IFA’s initiative reminds us of that truth.

But Local Franchise Brands live it from the beginning.

They don’t just operate locally.
They are built locally.

And when they scale through clustering and disciplined expansion, they don’t lose that local identity—they replicate it, market by market.

This is where Acceler8Success America is leaning in with intention.

There is a continued push to elevate Local Franchise Brands, to support local business growth, and to drive a resurgence of economic activity across Small Town USA. But just as importantly, there is a focus on strengthening brands before they scale.

Because what happens if a brand expands before its culture is clearly defined?
What happens if marketing lacks clarity and consistency?
What happens if sales are not driven by strategy?
What happens if profitability is not fully understood?

These are not minor issues. These are the fault lines where brands break.

Acceler8Success America is committed to helping local brands solidify their foundation, building the right culture, refining marketing to drive awareness and engagement, strengthening sales through disciplined execution, and improving profitability at the unit level.

Because growth does not fix weaknesses.
It magnifies them.

But when a brand gets this right locally, when it builds strength within a market, it creates something entirely different.

It creates a model that can be repeated.

So what if the industry shifted?

What if more brands focused on owning a market before entering the next?
What if franchising became the result of discipline, not the pursuit of it?
What if Local Franchise Brands became the standard?

Local Franchise Brands represent the American Dream in its most authentic and accessible form. They are built by individuals and families who take risks, who commit to their communities, who learn through doing. They are proven not through projections, but through performance. And when they are developed with intention through clustering, through discipline, through a relentless focus on getting it right, they create a foundation that can be scaled without losing what made them successful in the first place.

Each new market becomes more than expansion.
It becomes an extension of the American Dream.

So the question remains: Are we building franchise systems for growth, or are we building them for longevity?

Because those are not always the same thing.

Local should not be where a brand starts because it has to. It should be where it starts because it is the most effective way to build something that endures. Build locally. Develop clusters. Earn awareness. Prove the model. Strengthen culture. Refine marketing. Drive sales. Improve profitability. Then—and only then—scale with intention.

That is how Local Franchise Brands evolve into Emerging Franchise Brands.
That is how we align with Franchising Means Local not just in message, but in practice.
That is how we practice deliberate franchising.
And that is how we accelerate the American Dream.

If you are exploring franchise development or refranchising, or questioning whether your brand is truly ready to grow, now is the time to take a disciplined approach, one that aligns national ambition with local execution. At Acceler8Success America, the focus is clear: take what is often approached broadly at a national level and hyper-focus it locally, building real strength before scaling, while strengthening culture, elevating marketing, driving sales, and improving profitability where it matters most.

Start the conversation at paul@acceler8success.com.

A Case for Multi-Brand Franchising: The Evolution of a Franchisee Into an Entrepreneur

There is a point in franchising where the narrative shifts. It is subtle at first, almost imperceptible, but once it happens, everything changes.

The operator who once followed a system begins to think beyond it. The individual who once executed begins to build.

This is not accidental. It is the natural progression of a franchisee who has moved beyond a single unit, beyond a single brand, and into something more deliberate.

This is the evolution of a franchisee into an entrepreneur.

At the single-unit level, even for the most capable operators, the role is largely defined. You are executing a proven model. You are managing people, controlling costs, delivering a product or service consistent with brand standards. Success is measured in operational excellence. Discipline matters. Consistency matters. But the ceiling, while often attractive, is still defined by the box you operate within.

Multi-unit ownership begins to stretch that ceiling. It introduces leverage. It forces the operator to move from working in the business to working on the business. You can no longer be everywhere. You can no longer make every decision. You begin to build infrastructure. You develop leaders. You create systems within the system.

At this stage, many believe they have arrived as entrepreneurs.

In reality, they have only begun the transition.

The true inflection point occurs when a franchisee moves beyond a single brand.

Multi-brand franchising changes the game entirely.

Now, you are no longer simply scaling a model. You are allocating capital across different models. You are comparing performance across brands, across dayparts, across customer segments. You are evaluating not just how to run a business, but which business to run.

That is entrepreneurship in its purest form.

A multi-brand operator begins to think like a portfolio builder.

One concept may dominate breakfast and lunch. Another may win in dinner and late-night. One brand may deliver high margins with lower volumes. Another may drive top-line revenue with tighter margins but stronger brand equity.

The entrepreneur sees how these pieces fit together, not as isolated businesses, but as a coordinated strategy.

Real estate decisions become more sophisticated. Site selection is no longer about the next location, but about market coverage, brand adjacency, and cannibalization avoidance. Talent development evolves from store-level management to organizational design. Capital allocation becomes intentional. Growth is no longer about adding units. It is about building value.

And perhaps most importantly, risk is reframed.

A single-brand, even multi-unit operator, is exposed to the fortunes of that one brand. Brand missteps, changing consumer preferences, or shifts in unit economics can have a material impact.

The multi-brand entrepreneur diversifies that risk. Not recklessly, but deliberately. They understand that no brand is immune to cycles. They build accordingly.

This is where mindset separates operators from entrepreneurs.

The operator asks: How do I run this brand better?

The entrepreneur asks: Where should I deploy capital next, and why?

The operator focuses on execution.

The entrepreneur focuses on strategy, structure, and long-term value creation.

None of this diminishes the importance of operational excellence. In fact, it amplifies it. A multi-unit, multi-brand portfolio only works if each unit performs. But the center of gravity shifts. The business is no longer defined by a single set of operating standards. It is defined by the decisions made above them.

There is also a leadership evolution that cannot be overlooked.

In single-unit and early multi-unit operations, leadership is often proximity-based. The owner is close. Present. Involved.

In multi-brand environments, leadership becomes cultural. It must scale without constant presence. It must be taught, reinforced, and lived through others. This requires intentionality. It requires clarity. It requires a willingness to let go of control in order to gain scale.

Many franchisees aspire to own more units. Fewer are prepared to think across brands. Fewer still are willing to accept the responsibility that comes with it.

Because with multi-brand ownership comes a different level of accountability.

You are no longer just a steward of a brand.

You are a builder of an enterprise.

That is the distinction.

Franchising provides the pathway. It offers the model, the systems, the support. But entrepreneurship emerges when the individual begins to make decisions that shape outcomes beyond a single brand’s framework.

Multi-unit ownership teaches scale.
Multi-brand ownership teaches strategy.

And at that intersection, the franchisee becomes something more.

Not by title, but by behavior.
Not by aspiration, but by action.

An entrepreneur.

If you’re a multi-unit operator beginning to think beyond a single brand, or a franchisor evaluating how your best operators evolve into multi-brand groups, this is where the conversation changes.

Growth is no longer about adding locations. It becomes about structure. Alignment. Intentional expansion. Long-term value creation.

And most importantly, making the right decisions before you scale further.

If you’re navigating that shift—or preparing for it—let’s start a conversation. Reach out to me at paul@acceler8success.com.

Growth Without Structure Is Not a Strategy: Rethinking Franchise Development

Franchise development is not a sales goal. It is not “we want to sell 15 units in the next 12 months.” That statement is a wish. It may be an aspiration. It may even be a board-level mandate. But it is not a strategy.

If franchise development is not integrated into the broader business plan of the brand, it becomes expensive guesswork. And guesswork in franchising is one of the fastest ways to create brand damage that takes years to unwind.

Franchise development must begin with a far more uncomfortable question than “How many units do we want to sell?” The real question is, “How many units should we sell, in which markets, with what profile of operator, supported by what infrastructure, and at what pace that protects unit economics and franchisee performance?”

Growth without alignment is not growth. It is exposure.

The Development Plan Must Be Anchored to the Business Plan

If a brand’s three-year business plan calls for strengthening supply chain efficiencies, building regional density in two priority markets, and improving average unit volumes by 8%, then the franchise development plan must directly support those objectives.

Development cannot live in isolation from operations, training, marketing, real estate, and field support. If you sell 15 units into markets where you have no operational infrastructure, you have not accelerated the brand. You have stretched it.

Every development plan should answer:

Where are we growing geographically and why?

Do we have the operational support structure in place for that growth?

Is our supply chain ready for increased volume?

Can our training department onboard the number of franchisees we intend to award?

What does growth do to our existing franchisees’ territories, performance, and morale?

If development is outpacing support, the math will catch up with you.

Understanding the Numbers Is Not Optional

Franchise development is a funnel. A measurable, trackable, predictable funnel.

If you do not know how many raw leads convert to qualified candidates, how many qualified candidates convert to Discovery Day attendees, how many Discovery Days convert to awards, and how many awards actually open, you are not managing development. You are hoping.

Let’s say historically you know:

1,000 raw leads
300 qualified conversations
75 serious candidates
25 Discovery Days
10 franchise agreements
8 openings

That is a 0.8% lead-to-opening ratio.

If your goal is eight openings in the next 12 months and your historical performance holds, you need approximately 1,000 quality leads. Not impressions. Not clicks. Leads.

Now the next question becomes: what does it cost to generate 1,000 qualified leads?

If your blended cost per lead is $125, that is $125,000 in lead generation investment before factoring in internal development team compensation, CRM systems, travel, legal, and onboarding costs.

If you do not understand this math, your “15 units this year” target is not a plan. It is a number written on a whiteboard.

Not All Lead Sources Are Equal

Another mistake brands make is assuming that one lead source behaves the same as another.

Portal leads may convert at one rate. Expo leads at another. Referral leads from existing franchisees at a much higher rate. Broker networks at yet another. Social media may not convert directly at all, but it may increase credibility and lower friction at later stages of the funnel.

For example:

Expo leads may be fewer in volume but higher in intent.
Portal leads may be high in volume but lower in qualification.
Referral leads often have the highest closing ratios.
Broker-referred candidates may close faster but at higher commission cost.

Social media, PR, and thought leadership content may not produce measurable leads immediately, but they strengthen brand perception, which improves conversion across the entire funnel.

A development strategy must identify:

Which channels generate volume
Which channels generate quality
Which channels support credibility
Which channels reduce overall acquisition cost

Each channel has a role. None should be arbitrary.

Development Is Also a Financial Model

Too often, money is thrown at franchise development because “we need to sell X franchises by X date.”

That mindset is dangerous.

Franchise development must be budgeted like any other investment initiative. If your franchise fee is $45,000 and your average total development cost per award is $18,000, you must determine whether your net economics support reinvestment into brand infrastructure.

Selling franchises to fund operations is not a long-term strategy. It is a short-term survival tactic that erodes brand integrity.

Development revenue should support:

Operational field support expansion
Training capacity
Marketing infrastructure
Technology systems
Leadership depth

If franchise fee revenue is being used to plug operational losses, growth will eventually expose structural weaknesses.

The Impact on Existing Franchisees

Every franchise awarded changes the system.

Existing franchisees are watching. They evaluate new development based on three silent questions:

Will this strengthen the brand?
Will this dilute my territory or my sales?
Will corporate still support me with the same intensity?

If development outpaces performance, current franchisees lose confidence. When that happens, validation weakens. And when validation weakens, development slows.

The healthiest franchise systems grow in a way that improves franchisee economics. New units create brand awareness, increase regional advertising efficiency, improve supply chain leverage, and create multi-unit operators who understand the system.

But poorly planned growth creates cannibalization, operational strain, and cultural dilution.

Development must protect the ecosystem.

Territory Strategy and Profile Discipline

Another common failure is awarding franchises to anyone with a checkbook.

Development must define the ideal operator profile. Not just financially qualified, but culturally aligned and operationally capable.

Are you seeking owner-operators?
Multi-unit developers?
Semi-absentee investors?
Strategic regional operators?

Each requires different onboarding, different support structures, and different performance expectations.

Territory strategy matters just as much. Growth should create density. Density reduces marketing cost per unit, improves operational efficiency, and strengthens brand awareness.

Scattered growth across isolated markets may generate franchise fees, but it rarely creates long-term system strength.

Support After the Sale

Awarding a franchise agreement is not success. Opening successfully and achieving unit-level performance benchmarks is success.

Your development plan must be aligned with your onboarding capacity. If you award 20 units but can only properly support 10 openings, your pipeline becomes congested and franchisee frustration builds.

Field support ratios matter. Training schedules matter. Real estate timelines matter.

Development should be paced according to operational readiness, not optimism.

Development Must Be Deliberate

Franchise development is not about selling. It is about building.

It requires:

Clear geographic priorities
Defined operator profiles
Documented funnel metrics
Understood cost per lead
Blended channel strategy
Infrastructure readiness
Alignment with financial objectives
Respect for existing franchisees

When development is deliberate, growth compounds. When it is reactive, growth destabilizes.

Franchise brands that succeed long term treat development as a strategic discipline. They understand the math. They respect the operational realities. They align growth with infrastructure. They protect franchisee economics.

Planning must be more than wishes, hopes, and dreams.

It must be anchored in numbers, supported by structure, and integrated into the entire enterprise.

Because in franchising, growth is not the objective.

Sustainable, profitable, system-wide performance is.

Have you built a development strategy or simply set a sales goal? If this all sounds uncomfortably familiar, it may be time to reassess your development strategy.

Franchise development should be engineered, not improvised. It should be grounded in numbers, supported by operational capacity, aligned with your long-term valuation objectives, and protective of existing franchisees.

If you are ready to pressure-test your development funnel, clarify your cost-per-lead economics, align growth with infrastructure, and build a strategy that supports sustainable performance, let’s have that conversation.

Reach out directly at paul@acceler8success.com and let’s discuss how to move from selling franchises to building a system worthy of scale.

Why Responsible and Sustainable Franchise Growth Starts With Restraint

Franchising is often framed as a pathway to scale. In reality, it is a decision to permanently intertwine the fate of a brand with the financial lives of independent business owners. That distinction is not philosophical; it is practical, ethical, and enduring. As 2026 unfolds amid economic recalibration, heightened franchisee awareness, and increased scrutiny of franchise systems, the most responsible form of growth is also the most sustainable one: deliberate franchising.

Responsible franchising and sustainable franchising are not abstract ideals. They are the direct outcome of leadership that thinks beyond speed and short-term valuation. Deliberate franchising sits at the intersection of these principles. It recognizes that growth achieved without discipline may be impressive in the moment, but it is rarely durable. Systems built deliberately, by contrast, are designed to support franchisees through cycles, not just expansions. The question leaders must ask themselves is not whether they can grow, but whether they can do so in a way that deserves long-term trust.

Every franchise system begins with an entrepreneur who believes their business is ready for replication. That belief is often well-earned, but belief is not the same as preparedness. Deliberate entrepreneurs pause before franchising to ask questions that go beyond enthusiasm. Is the model genuinely transferable, or does it still rely on founder-driven decision-making and informal problem-solving? Are unit economics resilient enough to support average operators, not just exceptional ones? Would this business remain viable if market conditions tightened or costs rose unexpectedly? Responsible franchising requires confronting these questions before inviting others to invest.

Once franchising begins, leadership obligations change permanently. Decisions no longer affect only the corporate entity; they directly impact franchisees who have committed capital, signed personal guarantees, and structured their lives around the system. Deliberate franchisors understand that every mandate, every required investment, and every strategic shift must be evaluated through the lens of franchisee sustainability. Sustainable franchising is not about maximizing franchisor control. It is about ensuring franchisees can remain healthy, profitable, and engaged over the long term.

Development is where the consequences of nondeliberate franchising are most often revealed. Growth pursued without discipline can strain support infrastructure, dilute culture, and create misalignment that lingers for years. Deliberate franchisors ask whether the system is ready for additional units before approving them. Are training resources scalable? Are field teams positioned to support new locations effectively? Are markets being awarded based on strategic fit rather than availability? Responsible development prioritizes system health over unit count.

At the same time, deliberateness is not an excuse for stagnation. Sustainable franchising requires leadership that can make timely, informed decisions. Avoiding necessary changes, delaying difficult conversations, or postponing strategic shifts in the name of caution ultimately undermines trust. Franchisees expect clarity, not perfection. Deliberate leaders accept uncertainty, act with intention, and communicate openly about trade-offs and risks.

Diligence is the foundation of deliberate franchising. Responsible franchisors stay close to unit-level performance, not just aggregated metrics. They listen to franchisees with discernment, separating patterns from outliers. They invest in infrastructure before growth demands it. This diligence creates readiness, allowing leadership to act decisively when conditions change. Sustainable systems are not reactive; they are prepared.

Being informed is equally critical. The franchising environment is crowded with innovations, advisors, and promised accelerants to scale. Deliberate franchisors resist the urge to adopt solutions simply because they are popular or available. They ask whether proposed initiatives strengthen the franchise relationship or introduce unnecessary complexity. Sustainable franchising values simplicity, clarity, and execution over novelty.

Trust remains the defining currency of franchising. Responsible and sustainable systems are built on consistent, transparent leadership. Deliberate franchisors earn trust by explaining decisions, acknowledging their impact, and taking accountability for outcomes. Franchisees are more willing to align, invest, and adapt when they believe leadership is acting with long-term stewardship rather than short-term gain.

Culture is the natural byproduct of these choices. A deliberate franchise culture prioritizes clarity over ambiguity and accountability over avoidance. It does not rush change without preparation, nor does it allow unresolved issues to linger. When leadership models thoughtful decision-making and disciplined execution, the system becomes more resilient, more aligned, and better positioned to endure market shifts.

As 2026 continues to test assumptions across franchising, the distinction between fast growth and sound growth will become increasingly clear. Responsible franchising, sustainable franchising, and deliberate franchising are not separate philosophies. They are the same commitment expressed in different ways. The central question for franchisors and aspiring franchisors alike is whether they are willing to lead with the foresight, restraint, and accountability that shared risk demands. Growth achieved deliberately may take longer, but it is far more likely to last—and far more worthy of the trust franchisees place in the system.


About the Author

Paul Segreto brings over forty years of real-world experience in franchising, restaurants, and small business growth. Recognized as one of the Top 100 Global Franchise and Small Business Influencers, Paul is the driving voice behind Acceler8Success Café, a daily content platform that inspires and informs thousands of entrepreneurs nationwide. A passionate advocate for ethical leadership and sustainable growth, Paul has dedicated his career to helping founders, franchise executives, and entrepreneurial families achieve clarity, balance, and lasting success through purpose-driven action.


About Acceler8Success America

Acceler8Success America is a comprehensive business advisory and coaching platform dedicated to helping entrepreneurs, small business owners, and franchise professionals achieve The American Dream Accelerated.

Through a combination of strategic consulting, results-focused coaching, and empowering content, Acceler8Success America provides the tools, insights, and guidance needed to start, grow, and scale successfully in today’s fast-paced world.

With deep expertise in entrepreneurship, franchising, restaurants, and small business development, Acceler8Success America bridges experience and innovation, supporting current and aspiring entrepreneurs as they build sustainable businesses and lasting legacies across America.

Learn more at Acceler8SuccessAmerica.com

Mobile Marketing Can “Mobilize” Franchising

SGC BannerThe following article was written by Guest Author, Linda Daichendt. Linda is Founder, CEO and Managing Consultant at Strategic Growth Concepts, a consulting firm specializing in start-up, small and mid-sized businesses. She is a recognized expert with 20+ years experience in providing Marketing, Operations, HR, and Strategic planning services to start-up, small and mid-sized businesses. Linda can be contacted at linda@strategicgrowthconcepts.com and the company website at www.strategicgrowthconcepts.com.

Mobile Marketing Can “Mobilize” Franchising

Given the precarious state of today’s economy, franchise organizations are on ‘high alert’ for new ways of increasing their franchise development capabilities and helping their franchisees to increase revenues. While recent technology advances provide a variety of methodologies that can be useful in achieving these goals, there is one that has only recently come to the forefront of marketer’s awareness – Mobile Marketing. While you may not yet have heard a lot about it, be assured that in the very near future, you will need to know as much about it as you previously needed to know about direct mail, telemarketing, radio or TV.

Consider the cell phone and its capabilities if you will: recent studies indicate that there are currently more than 272 million mobile phone users in the U.S. (89% of the total population); of those phones, 99% are text capable and 57% of those mobile subscribers use texting on a regular basis; 15% of active mobile phones have the ability to utilize mobile web applications and 44 million people regularly access the mobile web from their cell phones; and over 84% of cell phone owners won’t leave home without the device. These statistics lend legitimacy to the school of thought that indicates that Mobile Marketing is likely to become a substantial portion of corporate marketing budget expenditures within the next few years.

mobilemarketingpanelGiven that, marketers will likely be intrigued by the following facts about Mobile Marketing derived from recent studies: over 80% of consumers respond to SMS messages within 1 hour; 23% of SMS campaign messages are forwarded and become viral; and the messages sent via mobile are actionable and trackable thru specific consumer replies.

I recently gave a presentation to a group of franchisors and franchisees on the topic of Mobile Marketing for franchises, and how its use can aid franchise growth and profitability. I was very pleased by the group’s positive response and interest in the topic, and the many excellent questions that were posed by the event attendees. Given the high level of interest by that group, I thought blog readers from the franchising industry might have an interest in the topic as well. Therefore, I wanted to share some basic Mobile Marketing information, as well as provide several ideas for how it can be utilized in a franchising environment.

First, let’s review what it is. Mobile Marketing is a simple to use, targeted and measurable method of reaching consumers anywhere, anytime via their mobile phones. There are a variety of methods of Mobile Marketing, among them are:

• SMS (short message service)
o Also known as ‘texting’
• MMS (multi-media message service)
o Messages that contain multi-media objects such as images, video and audio
• Mobile Web
o Browser-based web services such as the World Wide Web using a mobile device
• Bluetooth (short-range wireless technology; up to approx. 33 ft)
o Also known as proximity marketing
o The localized wireless distribution of advertising content associated with a particular place. In other words, if you have a cell phone in the proximity of a marketing broadcast, you would be able to receive a message or advertisement
• Location-Based Marketing
o Delivers multi-media directly to the user of a mobile device dependent upon their location via GPS technology
• QR Codes (quick-response barcodes)
o Two-dimensional barcode
• Voice

Next, let’s review several ways in which franchise organizations can utilize Mobile Marketing; these ideas include:

• a franchisor can communicate with all franchisees in their organization at one time via text message to remind them about an upcoming deadline or special event, insuring a timely and consistent message delivery
• a fitness club franchise can post class schedules or let potential customers sign up for an initial free visit on their mobile device
• a restaurant franchise can post seasonal menus or send coupons to their customer database
• a plumbing franchise can list rates and emergency numbers for consumer referral
• a franchisor can send voice messages to a group of prospective franchisees taking part in the franchise development process all at once; the franchisor can insure that all receive the same accurate version of the message, and they can save payroll costs because it takes only moments to have the message sent once instead of hours for personnel to make the calls directly
• many, many other ways that will drive business growth thru franchise development and/or increased consumer demand

Mobile Marketing is extremely cost-effective and results in very satisfactory ROI; with a typical ROI of 10 – 12% and returns as high as 30% reported on some campaigns. According to Nielsen Mobile, half of all U.S. mobile data users, or 28 million people, who recall seeing mobile advertising in the previous 30 days say they responded to a mobile ad.

New Laws Threaten Multi-Unit Owner Growth and Expansion

ifa2The following article was recently published in the International Franchise Association publication, Franchising World. The article addresses future franchise growth as potentially being affected by several bills expected to be considered by Congress. If the bills become law, the negative effects could be dramatic.

New Laws Threaten Multi-Unit Growth and Expansion
“Perfect storm” of organized-labor legislative proposals is aimed squarely at multi-unit owners.
By Matthew Shay
as published in Franchising World April 2009

Multi-unit franchise ownership continues to increase in popularity as a growth strategy for franchising. Data show that since 2004, multi-unit operators control almost half of franchised units and about 20 percent of franchisees are multi-unit operators. Industry-research firm FRANdata expects the growth to continue as more franchisors embrace multi-unit operators, and the established field of professionally-managed and sizable franchisee-owned companies gains popularity.

This growth, however, could be threatened by a “perfect storm” of three separate organized-labor-related bills expected to be considered by Congress. If enacted into law, these measures could derail the franchising industry’s ability to provide jobs and boost economic output to their local communities. The eye of this coming storm is aimed squarely at multi-unit restaurant owners.

The Employee Free Choice Act, known as “Card Check;” the Healthy Families Act; and the Re-Empowerment of Skilled and Professional Employees and Construction Tradesworkers Act, called “RESPECT” by its proponents, all sound harmless enough. However, despite the use of words like “choice,” “healthy” and “respect,” these bills, if passed, could result in the largest expansion of government interference into the free enterprise system since the New Deal.

Card Check would eliminate secret-ballot elections and require only signatures on cards to organize any segment of workers in a business, even in just one store. This means that you could walk into one of your stores on a Monday morning to find that a simple majority of your clerks had signed union cards over the weekend. Congratulations! You are now bound to a union such as the International Brotherhood of Teamsters and you only have a few weeks to negotiate a contract before a government bureaucrat imposes one.

The Healthy Families Act would require employers with as few as 15 employees to provide seven days of leave—with pay—annually to all full-time employees and a pro-rated amount of leave to part-time employees. Employees could take the leave in increments as small as six minutes with no notice and no documentation, and workers would be entitled to the leave almost immediately. Employees would be allowed to report to work an hour late in 56 different instances or be 15 minutes late for 224 days. In many cases, employees could do so without any notice, and the employer could not discipline the employee or require documentation. If this is enacted, you would either have to hire additional employees to be sure your shifts are always covered or not be able to service your customers’ needs adequately.

The RESPECT Act would change the statutory definition of “supervisor,” effectively making your managers and staff, who you rely on to manage your daily operations, members of a union. Your managers or supervisors would become part of a bargaining unit potentially making staffing decisions based on union membership rather than merit, ability or your established staffing policies.

IFA certainly supports an employee’s right to unionize and to be treated fairly and equitably, but these laws would jeopardize the basic tenets of franchising—being able to establish uniform processes and operations throughout systems. And if you own multiple units, you could very easily be affected differently from unit-to-unit, wreaking havoc on your company.

The likelihood of these laws being passed is high. To defeat their passage or make them less onerous, the franchising industry—franchisors and franchisees together—must work harder than ever to ensure that lawmakers in Congress understand the severe consequences on small businesses.

We are actively developing educational programs and other member services to better meet the needs of multi-unit operator-members of IFA in all franchising sectors. And our new Franchise Congress will be designed to step up our grassroots efforts by providing the tools and information needed to get all members more engaged politically.

It is more important than ever to have single and multi-unit franchisees involved in IFA to help defeat laws that restrict the virtues of the franchise model. As the old adage says, “there is strength in numbers.” That’s the key to success for all in franchising.

Franchise Growth: Are Concessions and Discounts Necessary?

This article is based upon a recent discussion in a LinkedIn franchise group. The original discussion posted the question, “What kind of discounts or concessions are required now to get a franchisee candidate to move forward?” and generated many responses and different views. The following is my response when my view about getting back to basics was preceived to be fine during “normal” times as opposed to during more difficult times, such as the present. A subsequent response from another franchise professional implied there are too many franchisors. I’ve addressed that as well.

discountAlthough it’s certainly easier to accomplish franchise growth during “normal” times, the basics need to be in place even more so during tough times. That’s not to say we don’t need to think and act outside-the-box to make something happen. It just means we need to be extra prudent and diligent in our actions and not use the economy as an excuse for poor execution of skills.

If we are to offer discounts and concessions in awarding franchises we need to be extremely careful we don’t oversell or create the perception of desperation. By doing so, we’ll either lose the deal or create a situation whereby the franchisee will not have respect for the franchise system and feel if one or two concessions were made initially, why not more moving forward? And then, there’s the perspective of franchisees already in the system that paid full amounts without concessions. What’s in it for them?

Nevertheless, with reports like Franchise Update’s about poor franchise sales performance and practices, I can’t help believe franchise systems wouldn’t be in better shape if their sales basics were perfected. It has to start with the basics before changing direction or considering revisions to the program.

In any business, just like in any sport, when a slump is emminent, it’s the fundamentals that need to be worked on before anything else should be considered or entertained. Once that’s done, then it makes good business sense to consider other options. At the very least, it should be done simultaneously. If not, what’s going to be the excuse when concessions and discounts don’t work?

PS – Saying there are too many franchisors is akin to saying there are too many businesses of the same kind. What happened to free enterprise and entrepreneurship? Maybe, franchising could be better served by more regulation, licensing and policing, to weed out the weaker (for whatever reason) franchisors and make it more difficult to become a franchisor. Unfortunately, I don’t see that happening because the “big boys” of franchising will squash those efforts in a New York minute. I look forward to debating this topic in a different discussion or forum.