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What’s Next in Franchising is a podcast for leaders scaling home and commercial services franchises, where growth puts real pressure on operations, teams, and culture.
Each episode explores what changes as franchise systems grow—across labor, technology, training, and field execution—through a weekly franchise news review and in-depth conversations with operators and executives actively building service brands.
The show is hosted by Leighton Healey, CEO of KnowHow, who has led from every seat in franchising: franchisee, franchisor, and now a technology founder. This vantage point shapes grounded, practical conversations focused on how to scale without losing quality, consistency, or trust in the field.
Travis Martin:
Welcome, everybody, to What’s Next in Franchising. My name is Travis Martin, and I’m here with a man who wears many hats.
Not only is he a good friend of mine, he’s the CEO of KnowHow and a seasoned franchise leader. We’re here to talk about not just where the franchise industry is today, but where it’s going.
Leighton Healey — good to see you, man. How are you doing?
Leighton Healey:
I’m doing well. Long-time listener, first-time caller.
I’ve had a very instructive career in franchising, both on the franchisee side and the franchisor side. And now I live in the world of AI, thinking every day about where the opportunities are for franchisors and franchisees in this transformational era we’re living in. I like to geek out on the weedy topics in franchising — and weedy they are.
Travis Martin:
This is such a critical time for the franchise industry to come up for air.
You’ve spent two decades across franchising and technology, and there’s a quote that feels especially relevant right now: there are weeks when nothing happens, and weeks when decades happen. It feels like every week we’re seeing fundamental shifts — in technology, regulation, and expectations.
That’s what we’re getting into today. We have three news stories that affect franchisees and franchisors across the U.S. and Canada, and our goal is to understand what these changes mean for what’s next in franchising.
For anyone listening for the first time — which is everyone — here’s what you can expect over the next 15–20 minutes: an insider’s perspective on how franchising is changing, how technology is affecting it, and how regulation is reshaping the landscape.
Let’s get into it.
Story 1: FTC Franchise Disclosure Updates
Travis Martin:
Our first story is about the FTC — the Federal Trade Commission — and upcoming changes to franchise disclosure expectations. These updates were announced earlier and go into effect in 2026.
At a high level, franchise agreements and FDDs will need to be clearer and more transparent. That includes clearer disclosure around technology fees and financial performance. No more hiding fees inside vague categories, and no more letting only top performers define expectations.
Leighton, you’ve been in franchising for decades. What’s your gut reaction? Who wins here?
Leighton Healey:
I don’t see this as winners and losers. The FTC sets the speed limit, and everyone adapts.
The FDD has always been central to franchising. I’ve personally disclosed to countless prospective franchisees and sat across the table from existing franchisees who were already questioning their return on royalty. These conversations aren’t new.
What’s changing is posture. For too long, franchisors have treated the FDD as an administrative burden — something seasonal and defensive, like an audit or tax filing.
That no longer works.
The narrative today is transparency. The FDD shouldn’t be defensive; it should be a leadership document. A signal that says: we trust you with the real picture, and we expect trust in return.
There’s a paradox here. On one hand, enforcement around operational control has loosened. On the other, the FDD demands consistent financial and operational reporting. You could jokingly say the FTC wants its cake and wants to eat it too.
But this creates an opportunity. When a regulation applies to everyone, differentiation matters. The networks that stand out will lean into transparency, not resist it.
Travis Martin:
You’ve said before that good fences make great neighbors. This feels like improving the fence so everyone understands the boundaries from the start.
Leighton Healey:
Exactly. When you drive through planned communities, you see shared fence lines everywhere. Some are well maintained, some aren’t.
In franchising, shared standards work the same way. Transparency creates trust. And in 2026, franchisors who lead with trust — especially during discovery and sales — will attract more pragmatic, level-headed franchise prospects. People who understand that real businesses aren’t rainbows and unicorns.
Story 2: Franchise 500 Rankings
Travis Martin:
Let’s move to the second story. Entrepreneur’s Franchise 500 rankings were just released. There’s strong representation from home and commercial services, which is encouraging.
When you looked at the list, what stood out?
Leighton Healey:
First, credit to Entrepreneur. The rankings are a meaningful moment for franchise systems. They inject energy into teams early in the year, especially with conventions happening in Q1.
Recognition matters — but visibility brings pressure.
When brands land on these lists, lead flow increases. Brokers reference it. Franchisees promote it. Expectations rise.
And with greater visibility comes scrutiny. Brand promise versus operational reality gets stress-tested. Franchisees expect they’ve bought a winner — and winners are expected to perform.
So while the upside is real, the operational bar rises quickly.
Story 3: The Shift Away from DIY
Travis Martin:
Our final story looks at consumer behavior. Five years ago, during COVID, we saw a surge in DIY. Today, we’re seeing a shift back to professionals.
What does that mean for service franchising?
Leighton Healey:
I don’t think it’s unfair to say the DIY era is fading. We’re entering a new era focused on execution and efficiency.
Consumers are busy. They want predictability and ease. They’re handing work back to professionals — and discovering services digitally.
This is a huge opportunity for service franchises. But it also highlights the elephant in the room: workforce constraints.
Demand is rising faster than skilled labor supply. That puts pressure on training, onboarding, and consistency across the network. Brands that rethink how they support franchisees — especially using AI and better operational systems — will be better positioned to meet demand without burning out their teams.
Closing Thoughts
Travis Martin:
Across all three stories, the theme is clear: 2026 demands greater operational sophistication.
Whether it’s FTC transparency, Franchise 500 visibility, or rising consumer expectations, growth without operational rigor creates friction.
Leighton, what would you say to a leader who feels like their operations are “fine,” but not great?
Leighton Healey:
The winds are shifting. Demand is coming. But without stronger operational systems, growth becomes fragile.
Franchisors can’t rely solely on effort and enthusiasm. They need scalable support, better knowledge systems, and smarter use of AI to support franchisees.
Those who act now will be able to capitalize on the opportunity ahead. Those who don’t will feel pressure from every direction.
I’m very bullish on home and commercial service franchising — especially for leaders willing to invest in operational excellence.
Travis Martin:
Thanks, Leighton, for sharing your perspective. And thanks to everyone for listening.
If this episode was valuable, follow the podcast and visit TryKnowHow.com to learn how we help franchise systems build stronger operational bench strength for 2026 and beyond.
We’ll see you on the next episode.