A reflection from Dan Rowe, CEO and Founder of Fransmart
Twenty-five years ago, I had a simple but ambitious vision: to help exceptional restaurant concepts grow from single locations into global brands. What I didn’t fully grasp then was just how transformative this journey would be—not just for the brands we’d help scale, but for everyone involved, including myself.
There’s no such thing as winning alone—our growth and profits depend entirely on whether the people who trust us with their investment actually make money. I’ve seen too many franchise systems collapse because they got greedy and started viewing franchisees as customers to get fees from rather than partners to build wealth with. The moment you shift from thinking about how to maximize what you can take from franchisees to obsessing over how much you can help them earn, everything changes—instead of designing systems that benefit corporate, you design systems that make locations profitable, and that’s when you build something that lasts generations.
As I write this in 2025, looking back on a quarter-century in franchise development, I’m struck by how much the industry has evolved—yet how certain fundamentals remain unchanged. I’ve learned from every franchisor, franchisee, and team member who’s been part of our story at Fransmart, and while technology and markets have transformed dramatically, the core truths remain the same: customers still must want what you’re offering, and franchisees have to be so successful they’re eager to open more locations and continue investing in their businesses. Today, I want to share some of these and other hard-earned insights with you.
The Numbers Tell a Story of Growth
The franchising industry has been on an epic trajectory. In 2024, the International Franchise Association shared that the overall number of franchise establishments increased by more than 15,000 units, or 1.9%, to 821,000 units in the U.S., while franchising added approximately 221,000 jobs. Even more impressive, the global franchise market surpassed $890 billion in 2024, with growth rates set to average nearly 10% per annum in the coming years.
These aren’t just statistics—they represent thousands of entrepreneurs who took the leap, thousands of brands that found their footing, and countless communities that benefited from local business ownership. At Fransmart, we’ve been privileged to play a small part in this massive ecosystem, helping brands like Five Guys, QDOBA, and The Halal Guys, grow from their early stages into household names. Now we are doing the same with PayMore, Glo30, and The Swing Bays as we diversify with non-food franchise brands
What I’ve Learned About Spotting Winners
After 25 years and having taken 10 different brands to more than 100 locations each, I’ve developed a sixth sense for what makes a concept scalable. It’s never just about the food or the product—though that has to be exceptional. It’s about the entire ecosystem: the founder’s vision, the operational systems, the unit economics, and perhaps most importantly, the concept’s ability to maintain its soul as it grows.
The best franchisable concepts share certain DNA. They have clear differentiation in their market, repeatable systems that don’t rely on the founder being in every location, and unit economics that work for franchisees in diverse markets. But beyond the mechanics, they have something harder to quantify—a brand story that resonates and a culture that travels well.
I’ve learned that timing matters enormously. The key is understanding not just what consumers want today, but what they’ll want in 12-18 months when the first franchise locations are opening.
The Evolution of Franchising
When I started Fransmart in 2000, the franchise landscape looked dramatically different. Digital marketing was in its infancy, social media didn’t exist, and franchise development was still largely a relationship-driven, paper-based process. Today’s franchising world is faster, more data-driven, and increasingly sophisticated.
Technology has been the great accelerator. Modern franchise brands can test new markets, analyze performance metrics, and support franchisees in ways that were impossible two decades ago. The pandemic accelerated many of these trends, pushing the industry toward contactless operations, delivery integration, and hybrid business models that I couldn’t have imagined in 2000.
But some fundamentals haven’t changed. Success still comes down to having the right people in the right systems with the right support. The best franchise brands today, just like 25 years ago, are built on trust, consistency, and mutual success between franchisor and franchisee.
Building Teams That Build Brands
One of my proudest accomplishments isn’t any single brand we’ve helped scale—it’s the team we’ve built at Fransmart. Over the years, I’ve learned that franchise development is ultimately a people business. You’re not just selling franchise rights; you’re creating partnerships that can last decades.
Building that kind of team requires more than just hiring talented people—it demands aligning everyone’s financial incentives with your long-term vision. If you want to scale sustainably, you can’t rely on commission-only structures or short-term bonuses that encourage quick wins over lasting relationships. Instead, we’ve focused on providing solid salaries paired with meaningful equity stakes. This approach ensures our team is motivated not just to close deals today, but to nurture the franchisee relationships that will drive our success for years to come. When your people have skin in the game through equity, they think like owners, not just employees—and that mindset shift is everything when you’re building partnerships meant to last decades.
The best team members in this business combine analytical rigor with genuine empathy. They can dive deep into market demographics and financial projections, but they also understand that behind every franchise agreement is an entrepreneur betting their future on a concept. This human element has become even more important as the industry has become more data driven.
I’ve been fortunate to work with franchisors who taught me the importance of systematic thinking and franchisees who showed me what courage looks like. Some of our most successful partnerships have come from franchisees who brought operational insights that made the entire system stronger. The best growth happens when everyone is learning from everyone else.
The Franchisee Perspective
After 25 years of working with franchise buyers, I’ve developed deep respect for what they bring to the table. The average franchise owner is about 44 years old, and many are making career transitions or looking to build generational wealth. They’re not just buying a business—they’re betting on their ability to execute someone else’s vision while adapting it to their local market.
The best franchisees I’ve worked with share certain characteristics: they’re coachable but not passive, they understand systems but can think creatively, and they’re committed to the brand while being entrepreneurial in their approach. These franchisees often become our best ambassadors and help us refine our understanding of what makes concepts work in the real world.
I’ve learned that franchisee success isn’t just about following the playbook—it’s about translating the brand promise into authentic local execution. The franchisees who thrive understand that they’re brand stewards, responsible for maintaining consistency while serving their specific communities.
Scaling Challenges and Solutions
Growing a brand from one location to 100+ teaches you humility quickly. Every concept faces what I call “scaling friction”—points where the systems that worked at 10 locations break down at 50, or where the culture that felt natural at 25 locations becomes diluted at 75.
We’ve learned to anticipate these friction points and build solutions proactively. This means investing in training systems before you need them, developing operational support structures while they still feel like overkill, and maintaining brand culture through intentional communication and shared experiences.
One of the biggest lessons has been the importance of infrastructure that scales. Early-stage brands often succeed through the founder’s personal attention and problem-solving. But sustainable franchise growth requires systems that work when the founder isn’t in the room, processes that maintain quality without constant oversight, and cultures that perpetuate themselves through clear values and consistent reinforcement.
Looking Forward: The Next 25 Years
As I look toward the future, I’m excited about the continued evolution of franchising. The forecast for 2025 includes a strong emphasis on sustainability, international growth, and technological innovation. These trends represent both opportunities and challenges for emerging brands.
The brands that will succeed in the next decade will be those that can balance innovation with operational excellence, that can leverage technology without losing their human touch, and that can grow globally while maintaining local relevance. The franchise model’s strength has always been its ability to combine entrepreneurial energy with systematic execution, and I believe this combination will be even more powerful in the years ahead.
Gratitude and Reflection
As I reflect on 25 years in this business, what strikes me most is how much I’ve learned from others. Every franchisor who trusted us with their concept taught me something about vision and persistence. Every franchisee who invested in our brands showed me something about courage and execution. Every team member who joined Fransmart brought perspectives that made us better.
The franchise industry has given me the opportunity to be part of creating something bigger than any individual contribution. When I see a Five Guys in Tokyo or a QDOBA in a small town, I’m reminded that what we do has real impact on real communities. We’re not just growing brands—we’re creating opportunities for entrepreneurs, jobs for communities, and experiences for consumers. We build wealth by building wealth for others. Our success is measured by the success we create for the people we serve.
The past 25 years have taught me that success in franchising isn’t just about identifying great concepts or executing perfect strategies. It’s about understanding that every franchise relationship is built on mutual success, that every brand is ultimately a collection of individual commitments to excellence, and that the best growth happens when everyone involved is genuinely invested in each other’s success.
Here’s to the next 25 years of building brands, supporting entrepreneurs, and learning from the incredible people who make franchising work. The journey continues, and I couldn’t be more excited about where it leads. When I think about the 1,000 locations we’ve helped open, I don’t just see storefronts—I see the ripple effect of economic opportunity. Each location represents not just a franchisee’s dream realized, but jobs created for electricians, equipment suppliers, painters, contractors, and countless others who helped bring that vision to life. That’s the true measure of our impact.
Dan Rowe is the CEO and Founder of Fransmart, a franchise development company that has helped grow brands from single locations to global chains. Over his 25-year career, he has worked with thousands of franchisors and franchisees to build successful franchise systems.
