By Seth Lederman
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December 1, 2023
The goal is not to be better than the other man, but your previous self. — The Dalai Lama It’s been a good year for franchising. The recently released 2023 Franchising Economic Outlook report by the International Franchise Association (IFA) indicated that franchise unit and job growth continue to surpass pre-pandemic levels. Even with ongoing economic uncertainty across the nation and world, franchises deliver jobs and business ownership opportunities for many entrepreneurs. Here’s more insight from the report: The number of franchise establishments will increase by almost 15,000 units in 2023, or 1.9%, to 805,000 units in the U.S. Franchising will add approximately 254,000 jobs in 2023. Total franchise employment is forecasted to reach 8.7 million, growing at 3.0%. The total output of franchised businesses — the measure of total economic activity in nominal dollars — will increase by 4.2% to $860.1 billion in 2023, up from $825.4 billion in 2022. If you have been contemplating entering the world of franchising, now may be the right time. But how can you determine which is the best franchisor for you? Let’s consider some things that make a franchisor the best. Vision and support Think of franchising as a recipe—it requires certain ingredients to turn out well. Building a thriving franchise system requires strategic vision, effective leadership, and a commitment to supporting franchisees. Without this unique blend of qualities, a franchise network will struggle to succeed, no matter how popular its product or service is. It all starts with a proven and replicable business model. This model serves as the blueprint for franchisees, providing a roadmap to success. It should be well-established, demonstrating profitability and sustainability over time. A franchisor must be able to convey this model clearly and comprehensively to prospective franchisees, instilling confidence in the viability of the business. Franchisee support is a linchpin of success. Providing comprehensive training programs, ongoing support, and resource access are essential elements. Most importantly, this support must extend beyond the initial stages of onboarding. Support from the franchisor should also include marketing assistance, operational guidance, and continuous education to help franchisees navigate challenges as they arise. A good franchisor understands that individual franchisees’ success contributes to the franchise system’s overall success. All about communication One of the things that draws so many to the world of franchising is the opportunity to be in business for themselves, not by themselves. A franchisor must communicate effectively to optimize that possibility. Open lines of communication create a collaborative environment where feedback is valued, concerns are addressed promptly, and improvements can be made collectively. Communication allows the franchisor to express expectations and will enable franchisees to be heard. But the best communication occurs when the franchisor operates honestly and transparently, providing clear information about costs, expectations, and potential challenges. Integrity and transparency are vital in a business relationship and create a collaborative and positive working environment. Openness to change Finally, the best franchisors embrace innovation and change. As evidenced during the pandemic, the franchising landscape is ever-evolving, and a good franchisor stays ahead of the curve. This involves keeping the brand and its offerings relevant, embracing new technologies, and anticipating market trends. An ability to adapt to changing circumstances ensures the franchise system remains resilient and competitive. Connected to this is an understanding of when and how to expand operations. Strategic growth is a hallmark of a successful franchisor. While expansion is a common goal, it should be approached strategically. A good franchisor focuses on quality over quantity, ensuring that new franchisees align with the brand’s values and standards. Thoughtful expansion leads to a more robust and sustainable franchise system. Top 2023 franchisor A great example of a franchisor that is excelling is The Vital Stretch. The fitness and wellness industry is booming, with a 2023 report from the IHRSA, the Global Health and Fitness Association, revealing about 80% of their survey respondents anticipate membership and revenue to grow by more than 5% this year. Not only has the industry bounced back from the pandemic in a big way, but it is expanding into new areas, including the stretch industry, which has emerged and is comparable to yoga and Pilates. As a clinically based assisted-stretching fitness and wellness franchise, The Vital Stretch is about bringing fitness and wellness to everyone’s community. When it comes to vision and support, The Vital Stretch easily checks both boxes. Potential franchisees can feel confident with The Vital Stretch’s assisted-stretching method developed by trained clinicians. Stretching has evidence-based science behind its benefits. Personalized one-on-one assisted stretching appeals to a broad population looking for injury recovery, graceful aging, and more effortless everyday movement. In terms of support, The Vital Stretch provides: A comprehensive training package. Industry-leading CRM, marketing, and sales tools to nurture leads, boost brand awareness, and increase revenue. Assistance in developing and designing an easier, more cost-effective opening. What about communication? Again, The Vital Stretch is top in its class thanks to monthly membership gatherings for franchisees and a thorough training program — the Vital Stretch Academy, the franchisor’s extensive online learning management system. Speaking of growth and change, while one-on-one assisted stretching may be a new addition to the health and wellness space, its innovative take on wellness is quickly catching on. The Vital Stretch method was created by a physical therapist and a chiropractic physician to offer a safe, effective, and deeply relaxing stretch experience. Vital Stretch Practitioners (VSPc) are trained and certified to deliver an exceptional assisted stretch experience. The experience starts with a thorough intake assessment before discussing flexibility goals that will allow clients to feel looser, lighter, and fully alive. With different involvement levels, such as owner-operated and executive franchise models, The Vital Stretch is winning raves from customers who love the semiprivate stretch spaces, boutique environment, and elevated stretching experience. What makes The Vital Stretch one of the best of 2023 is the franchisor goes the extra mile to understand each body’s unique composition to tailor stretches for optimal results. The best franchisors combine a proven business model with effective communication, innovation, support, and strategic growth. A franchisor creates a foundation for a successful and enduring franchise system by embodying these qualities. Seth Lederman of Frannexus has years of experience helping entrepreneurs find the best franchise to meet their goals and dreams. For more information and how to get started pursuing your business ownership dreams today, contact Frannexus today. About the Author Seth Lederman, CFE, a Franchise Acquisition and Development Specialist, is a multi-faceted entrepreneur with over 30 years of experience in small business success, including ownership and sale of his business enterprises. He frequently contributes to The Franchise Journal and is on the exclusive Forbes Business Council. Contact Seth at seth@thefranchiseconsultingcompany.com.