Global Franchise Issue 10.1

In uncertain times, consumers gravitate toward brands they trust. Franchise systems that invest consistently in quality, service, and community engagement often outperform the competition during downturns. In Latin America, brands that authentically invest in local communities – through employment opportunities, sustainability initiatives, or social programs – create emotional loyalty that transcends economic hardship. Digital platforms can be a powerful equalizer in volatilemarkets. Franchises that invest in e-commerce, delivery apps, and digital customer engagement not only build alternative revenue streams but also increase resilience against physical disruptions. Technology also provides real-time data, allowing both franchisors and franchisees to spot trends early and react faster. While no company can eliminate uncertainty, franchises that embed flexibility, deepen local engagement, and prioritize operational agility will not only survive but thrive in Latin America. The region rewards patience, adaptability, and a long-termvision. For franchise executives, this is a time not to pull back, but to double down on resilience strategies and position their brands for the next wave of growth. "Camarón que se duerme se lo lleva la corriente” – the shrimp that falls asleep is carried away by the current. Staying alert, adaptable, and resilient is the key to thriving amid the economic tides of Latin America. JayWestbury , CEO of the Franchise Council of Australia (FCA), describes how franchising is uniquely placed to lead the world in a changing business landscape, by doubling down on its ethos and values. In a time marked by heightened global political volatility, escalating trade tensions, and fast-moving economic shifts, one thing remains certain: resilience is not only essential, it’s expected. Franchising, by its very nature, is uniquely placed to rise to this challenge. The recent announcement of U.S. tariffs and the likelihood of international responses serve as a timely reminder that global uncertainty isn’t just a backdrop – it directly impacts businesses at every level. Supply chain disruptions, inflationary pressures, and evolving regulatory landscapes all demand that franchisors and franchisees be more agile and connected than ever. But amid these challenges lies opportunity. In Australia, we’ve seen firsthand how a well-supported franchise system can withstand economic headwinds and emerge stronger. Our $173 billion franchise sector supports over 500,000 jobs and 90,000 small businesses nationwide. With more than 1,200 franchise brands across a wide array of industries, franchising here is not only diverse, it’s essential. This resilience has been on full display in the past 12 months. The FCA has helped the sector navigate major regulatory changes, including the introduction of the new 2024 Franchising Code of Conduct. Through robust advocacy, extensive member engagement, and a relentless focus on education, the FCA has supported members in adapting to change rather than being overwhelmed by it. Key to our approach has been connection. The message is consistent: we are stronger together. Globally, this is the ethos franchising must embrace. As networks that thrive on proven systems and mutual success, we must double down on what makes franchising distinct: a commitment to partnership, innovation and local impact. At a time when politics are increasingly unpredictable and economic signals often unclear, franchisors must prioritize three things: 1. Transparent and timely communication: Keep franchisees informed and engaged with regular updates. Clarity and confidence in leadership builds trust across the network. 2. Flexibility in operations: Those who adapt quickly to changing customer behaviours and supply chain realities will not only survive but thrive. 3. Celebration of success: Recognizing franchisees’ achievements – especially in tough times – reinforces the value of being part of a franchise system. This is whyWorld Franchise Day on 11 June 2025 comes at the perfect moment. Australia is proud to be joining this global celebration, shining a light on the local heroes who drive our sector. From café owners employing school-leavers to regional service providers investing in community sport, these are the stories that need telling nowmore than ever. As part of our campaign, we’ll be highlighting franchisee spotlights, launching a national media campaign, and engaging government at all levels to ensure franchising’s role in economic resilience is recognized and championed. Ultimately, franchising isn’t just about business. It’s about belonging. In challenging times, belonging to a franchise system offers more than economic benefit; it provides connection, guidance, and shared purpose. As global uncertainties persist, we believe franchising’s greatest strength, its network, will also be its greatest asset. NAVIGATING UNCERTAINTY WITH UNITY learn regionally, and when you’re ready, cross oceans with experience, not just ambition. To the global brands that have already conquered markets like America, Australia, and Asia: if you’re in Europe, commit to it fully. Europe is not a mere stepping stone; it’s a large continent brimming with opportunity, with diverse markets and customer behaviors. The differences between the national markets are not hurdles — they’re advantages. Thanks to the collaboration of individual national franchise associations under the EFF, systems benefit from ethical standards that cross borders, making growth in Europe accessible and sustainable. Europe offers a franchising ecosystem like no other. At the European Franchise Federation, we aim to empower Europe’s franchise sector, from national heroes to global players. We promote ethical franchising, strong collaboration, and sustainable cross-border growth. In Europe, variety is strength, and cooperation breeds success. For those who understand this region, it offers a smart first step toward global expansion. 51 GLOBAL-FRANCHISE.COM Ins ight