By Keith Gerson –  When I first entered the world of franchising in the early ’70s, we didn’t even have fax machines, let alone the cutting-edge technology we rely on today. Back then, I’d carry around a briefcase filled with paper reports to every franchisee visit. Fast forward to now, as President and CEO of Gerson Advisory Services and former President of Franchise Operations for FranConnect, I’ve witnessed firsthand how technology—especially AI—is revolutionizing our industry. It’s been quite the journey, and today I want to share some insights on where we’re headed next.

The Chief Franchise Experience Officer (CFXO): Not Just Another Title

I recently had a conversation with Scott, a franchisor client of mine. He was puzzled. His top-performing franchisee was threatening to leave, despite having excellent numbers. “Keith,” he said, “I don’t get it. Their performance is stellar, but they’re still unhappy. What am I missing?”

This scenario underscores why I’ve been advocating for the role of Chief Franchise Experience Officer (CFXO). A CFXO isn’t just another fancy C-suite title. This role focuses on franchisee happiness and engagement, acting as the system’s empathy engine. In Scott’s case, a CFXO would have identified the problem early on—while the franchisee’s financials were strong, they hadn’t received meaningful support or recognition in months. It’s often not just about numbers; it’s about feeling valued.

From Consultant to Coach: Evolving Support for Franchisees

In the old days, the role of a Franchise Business Consultant was fairly cut and dry—show up, check some boxes, and move on. Thankfully, those days are behind us. Today, franchisees need much more than oversight; they need support that empowers them to succeed.

I recently heard a franchisee at a conference say, “I don’t need someone telling me to ‘increase sales.’ I need someone who can show me how.” That sentiment has stuck with me because it perfectly encapsulates the shift we’re witnessing in franchise support. We’re evolving toward the role of Franchise Success Coaches (FSCs), who act as a mix of business strategist, psychologist, and cheerleader. These coaches don’t just look at numbers—they help franchisees with everything from staff morale to local marketing strategies.

One of my clients adopted this approach last year, and the results were striking: customer satisfaction scores rose by 22%. Why? Because the FSCs focused on more than sales figures. They helped franchisees build strong teams and improve customer experiences, which translated into better business performance.

Tiered Support: A Tailored Approach for Franchisee Success

Here’s a hard truth I’ve learned over the years: a franchisee who’s been in business for 10 years needs vastly different support than someone who just opened their doors. Yet, many systems still take a one-size-fits-all approach to franchisee support.

I’ve spoken with long-term franchisees who expressed frustration over having to sit through the same basic training year after year. What they need is advanced strategies and peer networking opportunities, not repetitive training sessions. That’s where tiered support comes in. New franchisees should receive intensive, hands-on assistance, while veterans should get tailored strategies that push their growth to the next level. It’s not about giving less support to experienced franchisees—it’s about providing the right kind of support at every stage of their journey.

The Power of Real-Time Data: From Information to Action

I’ll never forget 1991, when I was working with a specialty food franchise that installed its first real-time POS system. Watching sales figures roll in live for the first time was like witnessing magic. Today, the data we have access to is even more mind-blowing, but data alone isn’t enough.

One of my clients recently used real-time data to spot a trend in negative reviews about the speed of service. By working with franchisees to address the issue, they saw a 15% increase in positive reviews in just three months. The key here isn’t the data itself—it’s how we use it to drive action and improvements.

Revolutionizing Franchise Operations with Playbooks

One of the most exciting developments in recent years is the use of playbooks to standardize best practices across franchise systems. Playbooks allow franchisors to turn data into immediate, actionable insights. For example, if a franchise location’s cleanliness scores drop below a certain threshold, the system can automatically assign a detailed cleaning playbook to that franchisee. It’s like having your best performers mentor every location, but on a scalable, automated level.

FranConnect has been a leader in developing these playbooks, and they’ve proven to be a game-changer for driving consistent performance across franchise systems.

AI and Machine Learning: The Next Frontier in Franchising

I’ll admit, when I first heard about AI being applied to franchising, I had my reservations. Concerns about data privacy, ethical issues, and the lack of a human touch made me skeptical. But I’ve since come around. Last year, I learned about a franchise system that used AI to generate customized performance improvement playbooks for each of their 500 locations. The results were tailored solutions that helped franchisees address specific challenges.

The real breakthrough came when the CEO told me, “For the first time, I feel like the advice we’re giving is truly tailored to each franchisee’s location, not just generic strategies.” AI is enabling a level of customization and precision we’ve never seen before.

The Hybrid Model: Balancing Technology and Personal Touch

The pandemic forced us to adapt to virtual communication, and while it wasn’t smooth at first, we’ve learned to balance high-tech efficiency with the need for personal, face-to-face interaction. Many franchisors are now adopting a hybrid model, combining in-person visits with virtual check-ins. This approach allows for the best of both worlds: the efficiency of technology with the personal touch that builds strong franchisee relationships.

Looking Ahead: Change is the Only Constant

As I reflect on my five decades in franchising, one thing is clear—this industry never stops evolving. The challenges we face today are different from those we faced in the ’80s or ’90s, but the core mission remains the same: supporting franchisees in building successful, sustainable businesses.

The future of franchising lies in embracing technology without losing the human touch. It’s about using data to inform decisions while maintaining strong relationships. Most importantly, it’s about providing tailored support that evolves as our franchisees grow.

It won’t be easy, but then again, the most rewarding things rarely are. Here’s to the future of franchising—it’s going to be one heck of a ride!