Franchising Industry Rewind: Everything We Learned in 2024

2024 was quite a ride for the franchising industry. Rising inflation, labor shortages, and ongoing supply chain disruptions put franchise owners to the test, but they met these challenges with resilience and creativity. 

From adopting new technologies to deepening community ties, franchise owners proved their strength in keeping local economies thriving. It wasn’t all hurdles, though.

This year also brought major growth opportunities, with many franchises expanding their reach and enhancing their customer relationships—we know how AI played a big part here. It took grit, adaptability, and especially flexibility to keep moving forward.

Now let’s take a look at key franchising trends, events, and lessons from the year, and see how they will prepare us for what comes next.

One of the biggest events we took part in was the Franchise Business Network Global Summit. Together with my friend and VP of Franchise Growth, Keith Levenson, we hosted roundtables on how to leverage technology for franchise growth.

The summit brought leaders from across our space to explore the latest franchise industry news, advancements in AI, supply chain management, and real estate strategies. Keynote speakers, including Sanjeev Sanghera, CEO of Doner Shack, and Meredith Wilson Parfet, CEO of Ravenyard Group, shared some gems definitely worth bringing along for 2025.

Later in October, ClientTether also sponsored and took part in the Franchise Leadership & Development Conference (FLDC), an exclusive event for franchisor CEOs, Presidents, COOs, CDOs and Franchise Development Executives. Talk about inspiration.

We also crossed the northern border to attend Let’s Grow Canada, where I hosted a session to talk about real franchise success stories and some of the strategies behind them. Another major one was the IFPG Retreat, a premier gathering for franchise consultants, brokers and franchisors, with multiple FranDev workshops and networking.

Top Franchising Trends for Franchise Management in 2024

We can’t talk about 2024 without bringing up the increased emphasis on franchise software and new AI additions to our toolkit. 

Many franchises adopted new tech to improve customer experience, streamline operations, and boost overall efficiency. AI-powered chatbots, data analytics, and digital payment solutions became everyday tools for a lot of franchise owners out there. I had a great talk with Joe Matthews on balancing responsibility with authority to leverage AI as a tool rather than a crutch for strategies to stay ahead.

There was a noticeable shift towards exploring emerging markets, both in the US and overseas. What helps explain franchising trends like that include the need for geographical diversification, untapped consumer segments and prime real estate at lower costs, when compared to saturated urban centers. All types of franchise brands are finding success by catering to the unique needs and preferences of these emerging markets.

Sustainability also got its share of the spotlight, as franchises sought to reduce their environmental impact and meet growing consumer demand for eco-friendly options.

Game-changing Tech for Franchise Operations

The role of technology in franchising cannot be overstated. In 2024, AI-powered tools and data-driven decision-making became game-changers for many franchise operations. 

Franchises leveraged AI to personalize customer experiences, streamline employee training, and manage supply chains more effectively. 

I remember a call I had with a prospective client, by the end of September, where I asked him why he went with that specific franchise CRM. And his answer was very telling: “It was better than a Google Spreadsheet.” While that’s surely true, it’s way past time franchise owners had a proper franchise software to help them build their brands.

This motion towards powerful and flexible franchise management software will continue to be a driving force in the coming years, as franchises look for ways to optimize their operations and stay ahead of the competition.

Check out what Red Boswell had to say about ClientTether:

Favorite Insights and Lessons Learned

There were 3 that really shined brighter this year, though we saw many contenders. 

There’s so much happening across the franchising industry, and things are changing so quickly that we expect to learn a lot more next year.

Adaptability emerged as one of the most important lessons of 2024. In times as uncertain as ours, with economic and political shifts almost daily, franchise owners have to adapt to stay caught up. Embrace uncertainty and find ways to leverage it.

Adding to that is flexibility. Labor shortages have significantly impacted the franchising industry, with 80% of franchises reporting unfilled job vacancies this year. This shortage has led to increased labor costs, particularly in employee healthcare, as franchises strive to attract and

retain. To address these challenges, many franchises have offered flexible work hours and growth opportunities, which have been effective in mitigating labor shortages. 

Community involvement was another key lesson. Franchises that actively supported local initiatives and connected with their communities saw increased customer loyalty. One local franchise in my town, for instance, sponsored neighborhood events and supported local schools, which helped them build a strong and loyal customer base. 

Franchise Owners: What to Expect in 2025

Owners should focus on technology adoption, community involvement, and exploring international markets for growth opportunities.

Looking ahead, we expect technology adoption and community engagement to remain critical for franchise success. Particularly when it comes to AI and data analytics, those who embrace tech will surely be well-positioned to succeed in 2025.

On the matter of CX, do save the date for the next FCXC in Atlanta (June 24 – 26). If you’re into networking and adding more winning ideas for growth and customer success to your collection, don’t miss this opportunity. The CT team will be in attendance.

Additionally, expanding into international markets, such as Mexico and Canada, presents a significant growth opportunity for franchises ready to adapt to regional preferences. Definitely expect to see more brands going global where you find your franchise industry news.

And as for the next conferences to take part in, check out our event list for 2024 to see which ones might have gone past your radar. 

Stay tuned for the upcoming 2025 list. We can’t wait to see you out there next year!