What Franchise - Issue 21.2

ActionCOACH’s UK Performance Director, James Vincent, onwhy networks trump solo operations in times of rapid change Franchising’s Central Advantage he recent Autumn Budget announcements sent shockwaves through the small business community. National Insurance contributions are rising, the National LivingWage is increasing, and business rate relief is being scaled back. Meanwhile, AI continues pushing into every corner of commerce, demanding constant adaptation and investment. For the independent business owner, it’s exhausting just keeping up with the headlines, let alone implementingmeaningful responses. This is where franchising’s structure shows its worth.While the sole trader wonders how to absorb increased costs or whether they should invest in AI chatbots, franchisees can focus on serving their customers. The heavy lifting happens elsewhere. Consider what it takes to respond to Budget changes.Youmust understand the implications, calculate the impact, research solutions, implement changes to payroll systems, adjust pricing, communicate with staff, and find time to actually run your business. It’s a time-consuming task that pulls focus away frommakingmoney. In a franchise network, this burden gets distributed differently. The franchisor’s central teamanalyses the Budget announcements, models scenarios, and develops standardised solutions. They consult with advisors who understand the franchisemodel. They create implementation guides, update systems, and tell franchisees what needs to change and when. The franchisee receives a comprehensive action and can implement proven solutions rather than experimenting with untested approaches. Most importantly, they continue serving customers while their franchisor handles strategic responses. The AI revolution presents an even bigger challenge. Independent businesses face an overwhelming landscape of AI tools, each promising to revolutionise operations. Should they invest in AI-powered customer service? Automated marketing? Predictive analytics? The options are endless, the costs uncertain, and the risk of choosing poorly is significant. Franchise networks can approach AI strategically and systematically. A franchisor can pilot AI solutions, measure results, refine implementation, and roll out proven technologies. They can negotiate enterprise- level pricing that individual operators could never access. They provide training, ongoing support, and continuous optimisation. Just as importantly, they can decide when not to adopt certain technologies. The independent operator lacks this testing ground andmust gamble with their resources. And in a franchise, the costs of innovation are divided between the entire franchise network. This centralised innovationmodel extends beyond crisis response and technology adoption. It applies tomarketing trends, regulatory compliance, supplier negotiations, and operational improvements.While franchisees focus on execution and local market relationships, the franchisor invests in research, development, and strategic positioning. Somemight argue this reduces franchisee autonomy, but I’d counter that it enhances meaningful autonomy. Franchisees gain freedom from constant strategic decision-making and can focus on the aspects of the business that attracted them in the first place. The independent business owner wears every hat: strategist, implementer, innovator, and operator. It’s admirable, but increasingly unsustainable in an environment of accelerating change. The franchise model recognises that these roles require different skills, resources, and time commitments. As we navigate economic uncertainty and technological disruption, an ability to separate strategic innovation fromoperational execution becomes increasingly valuable. It’s not about franchisees being passive recipients of instruction. It’s about intelligent division of labour that allows everyone to focus on their strengths. In times of rapid change, having a dedicated teamworking on solutions while you focus on customers isn’t a luxury. It’s a competitive necessity. That’s the franchise advantage. T James Vincent As UK Performance Director, James Vincent oversees performance and education, helping ActionCOACH’s business coaches develop their knowledge and coaching skills. With a track record in building winning teams, James has coached three Team GB athletes into the world’s top five, guiding them to Olympic Bronze and World Championship Silver medals. He has been named ActionCOACH EMEA Master Coach of the Year multiple times. “Having a dedicated team working on solutions while you focus on customers isn’t a luxury. It’s a competitive necessity. That’s the franchise advantage” 9 WHAT-FRANCHISE.COM Opinion