Four Innovative Approaches to Invigorate Franchise Recruiting in 2026
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Four Innovative Approaches to Invigorate Franchise Recruiting in 2026
A seasoned franchise sales and development veteran offers his perspective…
With the franchise industry approaching one million establishments in the U.S., it seems there’s never been a better time to consider an entrepreneurial future. Culled from the glowing data and statistics that provide empirical evidence of franchising’s growth, here’s a noteworthy takeaway – it’s rare for specific industries to sustain a growth level that outpaces the broader economy during uncertain macro conditions. Franchising has done so multiple years in a row.
As one might expect, these robust times have accelerated the hyper-competitive landscape for the estimated 3,000-4,000 franchisors in the marketplace today. All are vying for the same thing – the attention of qualified candidates seeking the perfect match in a business opportunity. Putting it mildly, franchise sales and development teams are fighting tooth and nail for the attention of a finite audience, which in turn puts a premium on their recruitment efforts.
To get a handle on where things stand and what comes next, Franchising Magazine USA recruited an expert source for a meaningful Q&A session. Art Coley, founder and CEO of CGI Franchise, is one of the foremost experts and thought leaders on franchise recruitment. His firm specializes in finding ideal candidates through the use of proprietary assets such as the Recruitment Operating System® and the company’s ROS Reporting Program™, which aligns data, metrics, technology, training, and coaching to drive predictability, accountability, and stronger recruitment outcomes.
The following question and answer session has been edited for brevity and length.
Considering the sheer amount of analytical resources at our disposal, why do so many franchisors continue to struggle with recruiting qualified candidates?
“This is one of the most common questions I hear, so I’ll get right to the point. Very few franchisors truly understand who their ideal candidate is, which means they really don’t know who they’re looking for. If you ask them, they’ll tell you, ‘We’re looking for people with the entrepreneurial spirit, or those looking to bail out of Corporate America, or people who want to establish financial independence.’ Well, guess what? That’s everybody. If you’re looking to define your ideal candidate, you need clarity on your value proposition – both for consumers and the franchisees you’re hoping to sign. Another factor? I see far too many brands working with budgets that simply don’t correlate with their goals and KPIs – the math just isn’t mathing. Lastly, another overlooked area is the onboarding process. When you have a world-class onboarding program, with top-notch teams, systems, and processes, you’ll get the top picks. It’s just like the old saying goes, you don’t get a second chance to make a first impression.”
Are there any areas of franchise recruitment where you’re seeing real progress?
“Yes, and one of the best examples that comes to mind is the level of inquisitiveness about the data and analytics they’re working with. Personally, I think it’s definitely linked to the advent of AI – and brands don’t want to make decisions while they’re flying blind. So, they’re asking us what type of data and analytics to use for measurement. They’re asking about what algorithms they should be using, the formulas they should be applying. They want to know how to interpret what the data is telling them and how to make course corrections to keep improving their recruiting efforts. Brands are also putting a lot more effort into synching up the sales process with the buying process – matching what feels right and naturally intuitive to the buyer. Overall, we’re seeing much more acknowledgement and understanding of how to fulfill their vision with development programs that are strategic, sustainable, repeatable, targeted, and – above all – professional. More and more, brands are coming to the realization that having a good business model isn’t enough. They’re done playing games and we’re happy to see it. I’m constantly telling brands to cut it with the Mickey Mouse efforts – the part-time VPs, outsourcing to the latest fad firm, having anyone but themselves do the actual work. But just like anything else that’s worthwhile in life, there’s no shortcuts here – you have to do the real work on your own. Brands are beginning to understand that it takes a world-class development effort to recruit world-class franchisees.”
How can franchisors tighten up their goal setting with realistic numbers?
“I tell brands all the time – your historical data matters when setting realistic goals. Say, for instance, if it’s been taking a brand 200 leads to get one signing, then don’t set your budget to accommodate a ratio of 75:1 for the next 12 months. Or, if it’s taking 50 applications to get one candidate to discovery day, you don’t budget for a ratio of 10:1. Believe it or not, your sales-to-conversion ratio is what it is. You’re not going to move the needle using some new age mathematical formula you just heard about during a panel discussion at the trade show you recently attended. Your historical data is what matters for setting realistic expectations. The same goes for setting realistic budgets to support your franchise recruitment efforts. Far too many franchise executives – and the private equity folks are just as guilty of this too – monkey around with the numbers, always trying to reduce costs and get to breakeven quicker. But that’s not realistic and it’s also not a real strategy. When you’re factoring the cost of conversions for your brand, applying your historical numbers should play a significant role in the process.”
What do you think is the leading cause of missed conversions?
“The most simple and direct answer I can give you is that brands fail to have a process. And when you don’t have a process, what you have instead is a problem. Franchisors that continually miss conversions and fail to hit their sales numbers haven’t truly defined their recruitment process, nor their training process for that matter. And compounding the problem, they’re not holding anyone accountable for not having this well-defined process in place. It really is that simple. Brands need to establish a clear cut process. On paper – with real documentation. It takes constant reinforcement, role playing, continually challenging themselves to perform better. Failing to properly define your process is the leading cause of missed conversions.”
If you had to narrow it down, what are four innovative approaches brands can apply to invigorate their franchise recruitment efforts in 2026?
“There are lots of different ways to answer this question, but I think the overarching theme is this – you have to be brilliant about the basics. If you’re asking me to narrow it down and provide four actionable examples, here are some strategies I would consider:
List every resale in your network for the past five years in Item 19 of your FDD. Provide a comprehensive view of your sales numbers for the last 12 months – including every buy/sell agreement. Next, list the financial performance of every unit in the system – group them if you have to. Use a chart that breaks down your sales figures and list everything out. Establishing this level of transparency will attract some of the most qualified candidates out there. Trust me when I say you have a lot more to gain than lose by following this advice
Get your sales roles aligned properly. Don’t let your top executives work the top of the sales funnels, that’s for appointment setters. Even good sales people aren’t the best appointment setters, and appointment setters should never be your best salespeople
In the early phases of the discovery process, there’s no need to play God. Far too often, even good salespeople get too eager and overzealous – just looking for ways to close out the file. When you have a couple of good sessions under your belt, it’s time to qualify in – listen more closely, ask questions, but don’t play God
During the Discovery Day itself, spend the majority of your time together – as much as 80% – discussing the onboarding process – and work with the candidate to establish a good foundation of expectations. When going over sales, technology, support, training, help them visualize their soft opening. Show them what’s possible in 30, 60, 90 days out, setting benchmark expectations at every turn
Art Coley
Let’s go to work!
Art Coley is the CEO of CGI Franchise. Using the proven Recruitment Operating System (ROS), his team helps franchise companies implement and execute a predictable, repeatable, and sustainable new franchisee recruitment program. Based in Temple, Texas, they work with brands worldwide.
Contact him at 281-658-9409 or acoley@cgifranchise.com. This article was initially featured in Franchise Magazine USA.
