The Evolution of Franchising: A Journey Through the Decades

McDonald’s started a revolution when it licensed its first restaurant franchise in the 1950s. Although the company was not the first to embrace the franchise model, it became a beacon of inspiration for those looking for a new way to do business in the post-World War II years. 

In the decades that have followed, franchising has proven to be an empowering model that has helped countless entrepreneurs launch and grow successful businesses.

“Franchising has proven resilient because it offers a scalable business model with built-in support systems for franchisees,” shares Jason Stowe, VP of Franchise Development for Cyberbacker International. “Franchisees get training, brand recognition, and ongoing operational support. The help they get from the franchise makes it easier to achieve success from day one.”

Jason Stowe has been a leader in the franchise industry for 30 years. In addition to operating his own franchises, he has spent nearly 20 years advising others in the franchise space through his passion for helping other entrepreneurs develop themselves and their brands.

“What first drew me to franchising was the opportunity to help others succeed by participating in an industry that fosters fast-paced growth,” Stowe shares. “I was also attracted by the opportunity franchising provides to develop a wide range of skills, from sales and operations to real estate site selection and development to nurturing trust-filled relationships between franchisors and franchisees. Franchising offered a dynamic environment where I could learn and contribute in multiple areas, making it an exciting and fulfilling path for me.”

In 2021, Stowe joined Cyberbacker International, the world’s leading provider of world-class administrative support and virtual assistant services from anywhere to anyone in the world. As the company’s VP of Franchise Development, Stowe supports an ever-growing group of Cyberbacker franchisees who are reshaping the business world by providing a cost-effective alternative to traditional assistants.

Franchising in the modern era

Like any other business, franchises must evolve over time to achieve long-term success. By adapting to changes in the business world, companies stay relevant. Those franchises that stay stuck in their ways, no matter how much success they have achieved, eventually become obsolete and unprofitable.

Stowe has seen several changes in the franchising space in the last 30 years that have empowered the model to adapt to new business challenges and stay relevant to consumers.

“One of the most notable shifts I’ve seen in franchising is technology integration, particularly through online marketing, automation, and digital platforms for operations and training,” Stowe says. “The advent of social media and targeted online advertising has revolutionized how franchises reach customers, making lead generation faster and more precise.”

Modern technology has been especially helpful in training, which is essential to franchise success. Today’s tech tools give franchisees a wide variety of training options, from e-learning platforms to mobile learning apps to virtual reality simulations. The capacity for advanced data analytics provided by today’s technology makes it easier for franchisees to know when their training is hitting the mark.

Stowe also points to the rise of service-based franchises, as opposed to traditional retail franchises, as a significant development in franchising that has emerged in recent years.

“The emergence of service-based franchises was catalyzed by the growth of the internet, the evolution of mobile technology, and the proliferation of cloud-based services,” explains Stowe. “Those tech tools have allowed franchisors to streamline operations, provide real-time support, and expand training. Digital transformation has also enabled franchise models to scale faster and more efficiently.”

Franchising potential in today’s business landscape

The economic uncertainty lingering in today’s business world poses risks for all businesses, including franchises, but the negative economic shifts that hurt traditional companies can sometimes fuel franchise growth. During downturns, franchising can offer entrepreneurs an option with lower risks than independent business ventures.

Stowe sees signs in today’s business landscape that are encouraging for franchises.

“The business landscape today is highly supportive of franchising, especially with the rise of remote work economies,” Stowe says. “The shift toward remote work models creates demand for flexible, service-oriented franchises, while artificial intelligence and other technological advancements are reducing the capital required to operate and scale franchise models.”

However, Stowe also sees rising competition and economic uncertainty as factors that franchisees must address to be successful. To capitalize on the potential in the marketplace, franchisees will need to seek out strategic innovations that give them a competitive advantage.

“Failing to adapt to technological trends or local market demands is one of the top pitfalls today’s franchisees face,” Stowe warns. “To succeed, today’s franchisee will need a combination of thorough due diligence, a strong understanding of the chosen industry, and networking skills. Being adaptable, persistent, and growth-focused are key traits for success in modern franchising.”

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