New research from TFM Digital released at National Franchise Convention guides franchisors on the best marketing strategy for the next 12 months while supporting a Franchise Council approach to networks
New Future Franchisee research from TFM Digital finds that 40+ men are the most engaged and ready-to-invest potential franchisee audience. This is despite a 3% increase of women identified as future franchisees over the past year.
The quarterly report analyses high-value potential prospects, classified as those with >$100K in savings and an appetite to invest, and provides data on how to best reach them.
The latest data shows that while there’s been an almost 6% decrease in total future franchisee audience, the biggest challenge remains selling the franchising dream, as 70% of those identified remain in full-time employment.
Presented by Taylor Fielding, TFM CEO, the research found that those high-income earners who are recently divorced represent a prime, but complex audience segment. The challenge being one of motivating prospects to leave career security for the freedom and earning potential within franchise business ownership.
TFM CEO, Taylor Fielding said: “The quarterly report offers a snapshot of opportunity in the franchise sector. It’s not solely used to analyse behaviour trends for prospects, but is often part of a wider tool franchises can tap into to deliver change on a network scale. Data like this helps build trust in a strategy and it arms franchises with real-world data to make informed decisions – whether it’s where the next franchise should be located, or how best to grow consideration among your local audience.”
The reaction from brands to the updated report at this year’s conference, as well as the data-backed approach was very positive. Many spoke of the ability to use insights from the report to help explain some of the decisions taken internally.
One of TFM’s current clients, Poolwerx, agreed that the real value is in franchise campaigns, having data available to take back to its Franchise Advisory Council, to demonstrate the progress the brand was making. It operates a tiered system for franchisees where the most engaged are provided the tools to succeed (Base/Better/Best). Data is being used by franchise groups and marketing teams, to forecast impressions and even lead generation. By using the OEI framework of Opportunity / Evidence / Impact, it can help align multiple stakeholders:
Opportunity – this could be to grow members
Evidence – supporting how decisions are made
Impact – real-world results that deliver against the bottom line
There’s a greater crossover today between marketing and operations. Whether it’s a new campaign around a menu launch, how to activate it, with ops supporting the new food items or concept behind the move.
Data is also powerful getting franchise groups on board with new ideas. During roundtables in the afternoon of Day 1, the topic of Franchise Advisory Councils (FAC) was heavily discussed. Jarrod Montigue, National Operations Manager at Roll’d Australia with a storied background in franchising, explained that the criteria for acceptance to the council needs to be strong, with a mix of franchisees willing to put the network first in their decision making.
The role of FACs is to communicate between the national office and franchisees the best strategy that will help build a greater collective and individual brands. Data can help build trust in the strategy of how a franchise goes to market, and support in the communication of how decisions are made. That’s been the thoughts from Guzman y Gomez and Chatime, who both conveyed the importance of FAC, along with annual planning and reviews to ensure that franchises feel empowered with brand assets etc.
Fielding added: “This year’s conference is definitely an upgrade on last year. With more than 500 people in attendance, many of them brands, it provided the foundations for fantastic debate on issues impacting all of us in the franchising sector.”