--- title: "Burgers are (still) in: The popular segment shows no signs of slowing down" url: https://burnaze.com/article/43f80a8c-059b-49ac-810a-0a1234fcbc06 source: "1851 Franchise" original_url: https://1851franchise.com/burgers-are-still-in-the-popular-segment-shows-no-signs-of-slowing-down-1029 category: "Restaurants" industry: "Restaurants" published: 2015-01-27T20:15:58.000Z modified: 2026-11-01T13:24:29.072Z image: https://1851franchise.com/_next/image?url=https%3A%2F%2Fnewimage.1851franchise.com%2Fauthor%2Ff6b69df61a7e0c25a97afce1df1b7ceb5133.jpg&w=3840&q=75 --- # Burgers are (still) in: The popular segment shows no signs of slowing down **TL;DR:** The traditional franchise sales model is failing due to prioritization of short-term success over supporting small business owners, leading to undisclosed broker fees and operational inefficiencies. Art Coley, CEO of CGI Franchise, advocates for transparency and long-term franchisee success through the Recruitment Operating System (ROS) framework. *originally published in 1851 Franchise on 2015-01-27. [Read the original](https://1851franchise.com/burgers-are-still-in-the-popular-segment-shows-no-signs-of-slowing-down-1029).* ## Key facts - A strong recruitment system must have transparency and unit-level profitability - The industry data can create a lack of transparency - A great business model is one that prioritizes long-term franchisee success ## Story The traditional franchise sales model is failing. Brands prioritize short-term success in the form of unit signings and franchise fee collections. Bloated — and undisclosed — broker fees leave them low on funds to support the small business owners they’ve just signed. Development teams accept sweeping industry averages, like a $13,000 cost per lead or a 1% deal-to-lead rate, rather than looking at the reality of their own system and examining the operational factors that could be influencing franchisee interest. Closing a deal has become the goal, not signing, onboarding and supporting a right-fit owner who will truly be successful in the system, and this pushes a lack of transparency that harms the entire industry. While a recent FTC settlement may represent some movement in the right direction, the industry at large needs a reset. Art Coley, CEO of CGI Franchise and the ROS Framework, said, "We've got to be willing to get honest, even if that means a headline or news gets out that isn’t pretty." Those behaviors unfortunately happen too much in the industry, and that in itself is an injustice because franchising is beautiful. It's the greatest invention, in my opinion, for small business ownership. ## Franchise development issues Coley is the creator of the Recruitment Operating System®, a framework developed to help franchisors optimize their own development efforts rather than relying on broker networks or lead generation agencies. With over 30 years of experience in the franchise industry, Coley bases his strategies on one enduring principle: a great business model is only as strong as the recruitment system behind it. A strong recruitment system, though, must have the right priorities. Coley advocates for transparency, attention to unit-level profitability and recruitment strategies that are aligned with long-term franchisee success. Coley said, "At ROS, we'll talk with any brand. We will even tie our compensation to the performance of your franchisees over five, 10 or 15 years." We aren't brokers or an FSO. Think of us as the franchisor to your franchise development. We provide manual systems and analytics for lead generation, appointment setting, sales and onboarding through 36 months. Our model is focused on scalability, durability and wealth generation for franchisors and franchisees. ## Industry change needed Reclaiming the potential of the industry requires development leaders to confront the uncomfortable realities of how franchising has changed, from hidden broker kickbacks to financial models that make ownership increasingly inaccessible for hopeful entrepreneurs. Coley highlights that more people than ever are actively choosing franchising, and there are still many franchisors who truly care about the success of their franchisees. Coley said, "We have a proven system that works, and we can show any franchisor the data." Personally, I feel like I'm finally getting the opportunity to make meaningful changes in our industry, which is very fulfilling. Nick Powills asked, "When you hear industry data, or you're looking at or talking to a franchisor that has false expectations with upside-down unit-level economics, how does it make you feel?" Art Coley replied, "It hurts. The industry data stuff in franchising, it reminds me of that phrase, 'The road to hell is paved with good intentions.'" Coley said, "I think people in our industry are trying to offer help. People are intending or trying to get real information. A lot of times, what happens is people start really vomiting from the mouth, and that ends up turning into just mistaken beliefs, false beliefs, unknowingly and all." Powills said, "I think about franchisors that are even reaching out to you, franchise salespeople or executive leadership, saying, 'We want more.' Of course, every franchisor should want more. They're not wrong to want that. But it seems like expectations are just always misaligned because of that industry data, because of probably false pressures from CEOs that don't get it." Coley replied, "Backing up, Nick, in some isolated cases it can create some opportunities for businesses like yours and mine. But you and I would trade it in a heartbeat if we didn't have that case, because we're still going to get the business that we need. People still need help, even if all the data and baselines are right." - The industry data can create a lack of transparency and harm the entire industry. - A strong recruitment system must have the right priorities, including transparency, unit-level profitability, and long-term franchisee success. - A great business model is only as strong as the recruitment system behind it. - The Recruitment Operating System (ROS) is a framework developed to help franchisors optimize their own development efforts. - A proven system that works is needed to reclaim the potential of the industry. - The industry needs a reset to prioritize the success of franchisees over short-term gains. - Industry data can be misleading and create false expectations. - Franchisors should focus on building successful businesses, not just signing franchise agreements. - Transparency is key to a successful recruitment system. ## Entities - 1851 Franchise (publication) - Restaurants (sector) - unit expansion (topic) - franchise development (topic) - Nick Powills (person) - franchise sales (topic) - Federal Trade Commission (regulator) - transparency (topic) - Art Coley (person) - CGI Franchise (company) - industry change (topic) --- Originally reported by 1851 Franchise (https://1851franchise.com/burgers-are-still-in-the-popular-segment-shows-no-signs-of-slowing-down-1029). Summarized by Burnaze (https://burnaze.com/article/43f80a8c-059b-49ac-810a-0a1234fcbc06).