ROI, ROI, ROI Your Boat

As I reviewed the content in this issue one more time, I was struck by the recurring theme of return on investment (ROI). Every time I looked at an article or column, ROI seemed to creep in—and why not? After all we’re all in business and “Money makes the world go round.”

Take our Innovation Awards cover story. For the 5th consecutive year, a panel of judges reviewed more than 100 entries to identify and recognize the brands that did the best job of creating and implementing original and successful innovation strategies and tactics. The brands had different goals—enhance the customer experience, streamline their processes, train and retain employees—but at the end of the day it was all about improving the ROI of their franchisees and their overall system.

Another feature dives into how different franchise brands are using social media for franchise recruitment. The usual suspects—LinkedIn, Twitter, YouTube, Instagram, and now TikTok—have become strategic tools for attracting new prospects. When it comes to telling stories online to persuade a prospect to call, text, email, or respond to a Facebook post, there are few tools more effective than social media. Choose the right platforms at the right time with the right message, and bang, ROI!

Brokers are another critical source for franchise development. In this issue, we take a deep dive into the many forms of third-party recruitment and the difference between franchise brokers and franchise sales organizations—and yes, there is a difference. We also asked how franchisors can make the most of the ever-increasing fees they pay for these services. (Did someone say ROI?)

Then there’s private equity, which is all about ROI. PE now plays a key role in a growing number of franchisors and franchisees alike, with an eye firmly fixed on the return they hope for from the time and money they pour into their investments. In addition to capital, PE partnerships can provide high-level management, industry-specific expertise, and other forms of support to help their investments prosper and grow. (Need I say “ROI”?)

As Josh Wall, chief growth officer at Unleashed Brands (which is owned by a PE firm), put it, “Each situation is going to be unique. In many cases when PE is looking to make that strategic investment, it’s looking to help the management team install new processes and systems that can help serve the franchisees at a higher level. So those franchisees get greater support, become more streamlined, and more profitable.” ROI, there you go again.

If you haven’t already done so, there’s still time to register for the Franchise Leadership & Development Conference. There will be the usual great speakers, timely and topical content, and extraordinary opportunities for networking. Join us at the InterContinental Buckhead Atlanta, October 18–20. The investment of time and travel will more than justify the return you will gain from attending.