Understanding the Experience Gap

Franchise brands are facing a critical challenge: a growing gap between what consumers expect and how franchisors are investing. In a market where digital convenience, personalization, and loyalty drive retention, outdated tactics put growth at risk.

We fielded a U.S. study of 83 franchise executives and 1,015 consumers to better understand those gaps, and our research reveals where consumer loyalty is won and lost, plus how franchise leaders can adjust strategies to better align with shifting expectations.

Key takeaways from the study:

76% trust businesses they perceive as local, even if they’re not.
50% use social media to discover local businesses.
90% say loyalty programs influence their decision to stay with a brand.

The Three Personas Shaping
How We Understand Loyalty

Consumers want the best of both worlds: the trust and local feel of neighborhood businesses with the convenience and consistency of national brands.

Our study identified three key consumer personas reshaping franchise loyalty in 2025:

The Consistency Crusader: Values reliability, familiarity, and quality, especially in retail and food & beverage. This group expects dependable experiences and rewards programs that reinforce loyalty.
The Digital Decision-Maker: Tech-savvy and discovery-driven, this persona uses AI tools, social media, and short-form video to explore brands. They’ll pay more for seamless, personalized digital experiences.
The Value Hunter: Price-conscious and deal-oriented, this group seeks the best combination of affordability and convenience. Loyalty is earned through discounts, promotions, and rewards programs.

Across Industries, Trust and Consistency Win Loyalty

Our research shows that consumer expectations vary by industry, but themes of trust, consistency, and experience hold across the board.

Retail: Consumers will pay more for consistent quality, but trust local businesses to deliver it more than national brands.
Food & Beverage: Taste is king, but convenience and atmosphere often decide where people stay loyal.
Home & Personal Services: Trust and clear communication are critical; text confirmations to real-time updates are a must, not a nice-to-have.

No matter the category, consistency and communication are essential and consumers will pay more for reliable experiences.

The Franchisor Perspective

Franchisors are investing heavily in marketing, but gaps remain between strategy and reality. While AI, digital convenience, and transparency are reshaping consumer and franchisee expectations, many systems still rely on outdated channels and approaches, leaving growth opportunities on the table.

What franchisors told us:

Only 39% plan to adopt AI-powered tools in the next two years — despite AI now driving consumer discovery.
Marketing support ranks as the #1 driver of franchisee satisfaction, but many systems lack the transparency franchisees expect.
Franchisors lean into websites and YouTube, while consumers are turning to apps, social media, and reviews.

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