What Franchise - Issue 21.2

“STRONG BUSINESSES CAN GROWSTEADILYWHEN THEY ARE ROOTED IN STRONG COMMUNITIES” Paul Lewis, MD, Pitman Training “FRANCHISESWILL BECOME “EXPERIENCE PLATFORMS”” Kevin Holt, Head of Franchise, Barclays UK “Imagine a fitness franchise that doubles as a wellness content hub, or a food brand that streams live cooking sessions from its outlets to global audiences” By 2026, local community impact will move from a ‘nice-to-have’ to one of the core KPIs that define a successful franchise network. Customers, lenders and franchise partners are already signalling that they want more than great service. They want to see how a brand improves the community around it. Franchises that can demonstrate real, measurable impact will hold a clear competitive edge. This shift isn’t just about charity or PR. It’s about recognising that strong franchise businesses can grow steadily when they are rooted in strong communities.We’ll see brands tracking community outcomes with the same rigour they apply to revenue or profitability: local employment created, skills developed, carbon reduced, social mobility supported, wellbeing initiatives delivered. And importantly, those measures will be visible and we will be able to compare them across the different franchise networks. In practical terms, this will reshape franchise strategy. The most successful brands will be those that empower franchisees to lead meaningful local initiatives and give them the tools and training to measure the impact. In 2026, community impact won’t just be part of franchising, it will help define the best of it. By 2026, franchising won’t just sell products or services – it will sell immersive experiences. The next wave of growth will come from brands that treat their franchise network as a platform for engagement, blending physical spaces with digital ecosystems. Imagine a fitness franchise that doubles as a wellness content hub, or a food brand that streams live cooking sessions from its outlets to global audiences. These aren’t gimmicks – they’re new revenue streams. As consumers crave connection and novelty, franchises will leverage gamification, AR/ VR, and community-driven content to turn everyday transactions into memorable experiences. This shift will also redefine franchise economics. Units won’t just compete on footfall – they’ll compete on digital reach and engagement metrics. This will create hybrid models where local operators become influencers and content creators. Expect partnerships with tech providers and media platforms to become standard, as franchises seek to monetise attention as much as consumption. What will the result be? Franchising evolves from a distribution model into an experience economy. In this model, the most successful brands are the ones that can entertain, educate, and connect consumers, while at the same time still delivering operational excellence. “Multi-unit and multi-brand expansion will be the smartest way to scale” Charlotte Smith, Editor of What Franchise & Global Franchise 2026 will be the year more franchisees will start thinking bigger and lean into multi-unit and multi- brand expansion. Instead of stopping at one, more operators will take on two, three, or even more franchise locations, and many others will add a second brand to balance their revenue. Growing in multiples won’t just be a trend next year; it will be the smartest path to safer scaling, protecting against market swings and unlocking new efficiencies that single-unit businesses simply can’t access. 48 WHAT FRANCHISE Issue 21.2