Nick Dan-Bergman, Chief Marketing Officer at Phoenix-based agency, LT, has seen the franchise industry evolve through economic swings, technological revolutions, and shifting consumer expectations. In LT’s 2025 Franchise Report, “Gaps That May Be Killing Your Franchise,” he highlights where brands are staying ahead and where they’re at risk of falling behind. In this exclusive Franchise Chatter interview, Nick shares how franchises can bridge the growing divide between consumer behaviors and brand realities.
Franchise Chatter (FC): What major shifts are you seeing in franchise consumer behavior today?
Nick Dan-Bergman (NDB): The past five years have brought what I’d call crazy consumer shifts. The pandemic, inflation, and new technology have split the marketplace into two worlds. Those with greater affluence and those struggling more than ever. Add in short-form video platforms like TikTok, Instagram Reels, and YouTube Shorts becoming today’s search engines, and the way consumers discover brands looks completely different.
🎯Find Best-Fit Franchises Still Available in Your Target Area (Free Tool)
When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code to see which franchises are still available near you, saving you months of wasted research.📈Dreaming of Multi‑Unit Success? Lock In Prime Territories Before They're Gone.
Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does.But many franchisors are still slow to adapt. Our report highlights not just spending misalignments, but deeper gaps in how brands meet consumer values. Those gaps show up in loyalty, digital experiences, and the balance between local authenticity and national consistency.
The data paints a clear picture: while consumers expect more personalization and convenience, franchise systems often lag behind. It’s not about doing everything new, but about realigning what you’re already doing to where consumers are now.
FC: How does that local versus national balance play out?
NDB: Consumers say they want to buy local, but context drives decisions. If I’m rushing to work, convenience wins, so maybe I grab Starbucks. But if I’m meeting someone for coffee, I’ll choose a unique local spot.
Local brands win on personalization and authenticity. National brands win on digital convenience and scale. The challenge for locals is to deliver seamless digital experiences with limited resources. For national players, the opportunity is to use technology to feel more personal, not less.
🎯Find Best-Fit Franchises Still Available in Your Target Area (Free Tool)
When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code to see which franchises are still available near you, saving you months of wasted research.🔴Free Webinar: 6 Under-the-Radar Franchise Concepts That Serious Buyers Should Know
Every month we feature 6 standout franchises that could be the opportunity you've been looking for, each evaluated on disclosed financials and matched to the type of buyer most likely to succeed with it. Can't attend live on October 27 at 6PM EST? Register now and we'll send you the full recording the next day. Reserve your spot here.That’s the heart of what we call the “local-first digital mindset.” Even large systems can feel small and human if they build in personalized touchpoints, like localized offers, store-specific content, or community engagement moments that ladder up to a national campaign.
FC: How do loyalty strategies differ across industries?
NDB: Loyalty looks very different depending on the category. In food and beverage, it’s all about frequency and how often you can get people back. For in-home services, it’s about satisfaction and referrals. A customer might not call the same roofer twice, but if they’re impressed, they’ll tell their neighbors, “Don’t even bother searching—call them.”
Digital plays a key role here, too. Reviews, ratings, and social proof often are the loyalty program for service-based franchises. But in every case, the principle is the same: consistency builds trust, and trust drives loyalty.
We’ve seen that loyalty is now fundamental. More than 90% of consumers say rewards influence brand stickiness. The challenge for franchisors isn’t whether to have loyalty, it’s how to make it meaningful, easy to use, and relevant across locations.
🎯Find Best-Fit Franchises Still Available in Your Target Area (Free Tool)
When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code to see which franchises are still available near you, saving you months of wasted research.📈Dreaming of Multi‑Unit Success? Lock In Prime Territories Before They're Gone.
Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does.FC: LT’s report introduces three new consumer personas. Why take a behavioral approach?
NDB: Demographics only tell part of the story. Behavior shows intent. We identified three key personas: the Consistency Crusader, the Digital Decision-Maker, and the Value Hunter. Not every franchise needs to target all three.
A great example is Neighborly, the largest home services brand in the U.S. They don’t chase the Value Hunter; instead, they focus on experience, technology, and reliability. Their Net Promoter Scores are through the roof because they know who they’re for and double down on that audience.
The takeaway for leaders is to define your “no.” When you know which audience isn’t yours, you can focus your marketing and operations around the customers who truly align with your brand promise.
FC: AI has become a defining topic for marketers. Where do you see the franchising opportunity?
NDB: Adoption is mixed. Some franchises are early adopters, but most hesitate due to data governance or fear of rogue franchisees. The best approach is to start small and build trust.
- Efficiency & process improvements: Use AI to eliminate repetitive admin work and save time.
- Marketing optimization: Move from one-to-many marketing to one-to-one personalization.
You have to get marketing, IT, and legal on the same page. Shared governance prevents disjointed tools and wasted effort.
Creating a culture that embraces AI is also key. If you don’t, you’ll end up with a small group of “AI masters” and a frustrated majority. You can’t just hand people new tools; you need to show them how those tools make their work better. AI should reduce friction, not add confusion. When employees see that, adoption follows.
FC: How can franchisors strengthen relationships with their franchisees?
NDB: Communication is everything. Two things that work really well:
- Franchisee Advisory Boards: Engage with your most active operators regularly, not just once a year.
- Dashboards with context: Go beyond numbers. Explain what’s happening and why.
When results are good, transparency builds momentum. When results lag, communication builds trust. Either way, you’re winning.
Franchisee satisfaction is directly tied to marketing support. The best systems share data in ways that make operators feel empowered, not excluded. When you close the communication gap, you strengthen the entire network.
FC: What’s your advice for balancing traditional channels with newer platforms like short-form video?
NDB: Don’t chase every trend. Platforms like YouTube Shorts or Reels matter, but you need to test them strategically. Give new channels at least three months before evaluating. If you test too many things at once, you’ll never know what’s working. And, if you communicate this clearly to franchisees, it shows that you’re being intentional, not reactive.
The key is to think format-first, not platform-first. What works as a 60-second video might also work as a GIF, a blog snippet, or a vertical ad. Consistency across formats matters more than chasing the next viral post.
FC: With inflation and economic uncertainty, how can franchises stand out without competing on price?
NDB: Price is temporary. Experience is forever. Tariffs and supply chain issues can change prices overnight, but the quality of your customer experience, digital ease, and consistency will sustain your business long term.
It’s about what you can control. Inflation isn’t going away anytime soon, so the smart play is to double down on brand values: trust, service, and reliability. Those are recession-proof qualities.
FC: Finally, what’s next for franchising over the next three years?
NDB: The next few years will test how well franchises can close the gap between what consumers expect and what brands deliver. The winners will clearly define who they serve, communicate transparently with franchisees, and integrate AI responsibly.
Franchising has always been about balancing scale with local authenticity. With the right focus, that balance can be its greatest advantage.
We’re entering an era where consumer trust and technology are no longer trade-offs; they’re intertwined. The brands that humanize their tech and digitize their humanity will lead the next wave of franchise growth.
Know your audience, empower your operators, and evolve your technology with purpose. That’s how brands will thrive in 2025 and beyond.
💼Corporate Executives: Your Management Experience Is Your Greatest Franchise Asset
Whether navigating a career transition or planning your next chapter, franchise ownership gives you a proven system to put decades of management experience to work for yourself. Severance packages, 401k rollovers, and SBA loans make funding more accessible than most executives realize. Enter your ZIP code to explore franchise opportunities still available in your area and find out which brands are actively seeking experienced business leaders like you.The Best of Franchise Chatter
🥇The Most Profitable Franchises of 2026
🥈Franchises Ranked by Average Revenues
🥉Franchises Ranked by Average Profits
🏆Franchise Winners, Survivors & Losers
Subscribe Now or Log In
🎖️Military Veterans: Your Service Prepared You for Franchise Ownership Better Than You Think
Franchisors actively seek out veterans because the discipline, leadership, and ability to follow a proven system that the military instills are exactly the qualities that make franchise owners successful. Through the VetFran program, many leading brands offer significant incentives including reduced franchise fees and special financing. Enter your ZIP code to explore franchise opportunities still available in your area and find out which brands are actively looking for veterans like you.
Franchise Chatter is reader-supported. We may receive a commission for leads generated from affiliate links and banners on our site.
Leave a Reply