By: Nik Korba

At the dawn of the 1990s, only the cutting-edge franchises utilized the technological innovation known as the Internet. Over the next three decades, however, the Internet became an essential element of franchises, playing a pivotal role in virtually every aspect of business operations. From recruiting to marketing to managing their finances, today’s franchises leverage the Internet and the tools it supports to drive business success.

Jason Stowe, VP of Franchise Development for Cyberbacker International, has witnessed the evolution of the franchise industry. Over the past three decades, he has operated his franchises and advised others on what it takes to succeed as a franchiser and franchisee.

“One of the notable shifts I’ve seen in franchising is technology integration, particularly through online marketing, automation, and digital platforms for operations and training,” Stowe says. “The advent of social media and targeted online advertising has revolutionized how franchises reach customers, making lead generation faster and more precise.”

When Stowe joined Cyberbacker in 2021, he stepped into a leading role at a franchise company that couldn’t operate without the Internet. As the world’s leading provider of world-class administrative support and virtual assistant services, Cyberbacker uses online technology to provide virtual assistants from anywhere to anyone in the world. It leverages the internet to help businesses connect more efficiently and affordably with premier talent who can support various businesses.

“The changes that have occurred in franchising over the past 30 years were catalyzed by the growth of the internet, the evolution of mobile technology, and the proliferation of cloud-based services,” Stowe explains. “As those technologies emerged and took hold, they allowed franchisors to streamline operations, provide real-time support, and expand training. Digital transformation has also enabled franchise models to scale faster and more efficiently.”

Keeping Pace with Customer Expectations

As the internet was empowering new business capabilities, it was also reshaping customer expectations. The internet facilitated greater accessibility and convenience, leading customers to expect companies to be available 24/7 with online ordering and customer support. The internet also fueled a desire for instant gratification, meaning companies were expected to provide rapid deliveries and real-time responses.

By leveraging the internet’s new tools, franchises could keep pace with customer expectations, pivoting to provide the type of service the next generation of consumers had come to expect.

“Consumers today expect convenience, speed, and seamless experiences,” Stowe shares. “Franchising models have evolved to meet changing consumer expectations by becoming more customer-centric. Franchises use innovative, tech-driven models such as mobile apps, enhanced customer service, and virtual support services to meet customers where they are and deliver the experience they are expecting.”

The agility with which franchises have responded to changing customer expectations speaks to the dynamism of the business model. This segment of the business world has planted its flag in diverse markets, both domestically and internationally.

“From the beginning, I saw that franchising offered a dynamic environment where I could learn and contribute in multiple areas,” Stowe shares. “What first drew me was the opportunity to help others succeed in an industry that fosters fast-paced growth. I was also attracted by the chance to develop various skills, from sales and operations to real estate site selection and development, brand building, and nurturing trust-filled relationships between franchisors and franchisees.”

Meeting Business Challenges With Resilience

The ways in which franchising has evolved over the past 30 years have only increased its value, resulting in an extremely resilient business model. Some reports show that 85 percent of franchises remain open after five years, much higher than the 55 percent success rate provided by the US Bureau of Labor Statistics for all new businesses.

“Franchising has proven resilient because it offers a scalable business model with built-in support systems for franchisees, including training, brand recognition, and ongoing operational guidance,” Stowe explains.

Whereas independent companies often must spend years establishing a good reputation, franchises have it on day one. The brand loyalty and trust they enjoy from operating under an established name drive favorable customer behavior, allowing franchises to thrive in competitive markets.

Stowe also cites manageable financial entry points as a reason franchising shows higher-than-average resilience even when economic conditions are challenging.

“Challenging economic shifts often fuel franchise growth,” he says. “During downturns, franchising can provide individuals with a lower-risk opportunity to start their own business compared to independent ventures.”

Today’s franchising industry offers entrepreneurs promising opportunities to achieve long-term business success. Those who find the right franchise for their skills and dedicate themselves to its growth may enjoy the same satisfaction and success Stowe has found.

“Being adaptable, persistent, and growth-focused are key traits in modern franchising,” he shares. “Those who approach the task with thorough due diligence, a strong understanding of the chosen industry, and networking skills can find success.”

Published by: Holy Minoza