Navigating the Future of Franchise Development: Insights from Joe Matthews

Staying ahead in franchise development requires more than just traditional sales skills. It demands a deep understanding of digital marketing, brand storytelling, and the entire buyer journey. In a recent episode of The Advisory Board Podcast, host Dave Hansen sat down with Joe Matthews, founder and CEO of Franchise Performance Group (FPG), to discuss these critical shifts. Joe Matthews brings over 40 years of experience in franchising, having worked with renowned brands like Subway, Fantastic Sams, and Marco’s Pizza. His insights, shaped by decades in the industry and a passion for responsible franchising, provide a roadmap for franchise professionals looking to thrive in today’s market.

Joe Matthews emphasized that the role of the franchise salesperson is rapidly changing. It’s no longer just about closing deals; it’s about understanding and contributing to the entire buyer journey, from lead generation to the final sale. This shift requires cross-functional skills that many in the industry have yet to fully adopt. As Matthews pointed out, “The franchise salesperson of the future should have been the franchise salesperson five years ago. We’re laggards, I think, in franchise development” (06:06-08:06). His statement underscores the urgency for franchise professionals to catch up with the demands of the industry.

The Digital Marketing Gap in FranDev (06:06-08:06)

One of the most significant gaps Matthews identified is the lack of digital marketing knowledge among franchise development professionals. He noted that many sales teams still rely heavily on outdated methods, failing to leverage the power of digital traffic generation and brand storytelling. “There’s an incredible amount of content streaming that goes on, and because the average franchise salesperson has not kept up, they don’t know all it takes even to create and engage a lead,” Matthews explained. This gap leaves a substantial portion of the buyer journey in the hands of those who may not fully understand it, ultimately impacting the effectiveness of the sales process.

The Importance of Brand and Investor Storytelling (08:24-10:24)

Matthews stressed the importance of brand and investor storytelling in the franchise development process. He explained that effective storytelling is not just about marketing; it’s about influencing the buying decision at every stage of the journey. “Franchise salespeople need to know enough about brand storytelling to actually get content to the content teams to create streams that genuinely influence the buying decision,” Matthews said. This approach ensures that the narrative presented to potential franchisees is compelling and consistent, which is crucial for converting leads into sales.

AI’s Role in Enhancing Content Creation (12:26-14:26)

The integration of AI in content creation was another key topic. Matthews acknowledged the benefits of AI in speeding up content production but warned against relying on it entirely. He advocates for a layered approach where AI is used to generate ideas, but human editing is essential to maintain quality. “AI took my writing time down from three to four hours to under an hour. But you don’t rely on AI. You use it to generate ideas, then put it in your own voice and do aggressive edits,” Matthews advised. This balance between technology and human creativity ensures that the content remains authentic and effective.

The Shift in Franchise Development Responsibilities (14:34-16:34)

Matthews also highlighted the evolving responsibilities of franchise development professionals. He argued that sales teams need to be more involved in content creation and digital marketing efforts. “The recruiter of the future is going to know enough about digital marketing so they can feed the ad agency actionable information that the ad agency can’t create on their own,” Matthews stated. This shift reflects the growing importance of a holistic approach to franchise development, where sales, marketing, and content creation are closely intertwined.

Balancing Responsibility and Authority in Franchise Development (18:53-21:00)

A particularly striking point Matthews made was about the dysfunction in having full responsibility without corresponding authority in franchise development roles. He argued that professionals in these roles must seek signoff power to ensure their success. “The worst position you could ever put yourself in is having 100% responsibility and no authority,” Matthews said. This insight is particularly relevant for consultants and leaders in the franchise industry, highlighting the need for clear roles and responsibilities to achieve the best outcomes.

Wrap Up Thoughts

Joe Matthews’ insights from The Advisory Board Podcast are a wake-up call for franchise development professionals. The industry is changing rapidly, and those who fail to adapt will be left behind. By embracing digital marketing, understanding the full buyer journey, and mastering brand storytelling, franchise salespeople can position themselves for success in this new landscape. Additionally, balancing responsibility with authority and leveraging AI as a tool rather than a crutch are crucial strategies for staying ahead.

For more on how to enhance your franchise development strategy, explore resources like the Franchise Sales Academy on the Franchise Performance Group’s website and consider the comprehensive CRM solutions offered by ClientTether. To dive deeper into these topics, watch the full episode of the Advisory Board Podcast here or listen on Spreaker.

By following these strategies, franchise professionals can not only keep pace with the industry but lead it into the future.