--- title: "February Jobs Report: U.S. Unemployment Holds Under Five Percent" url: https://burnaze.com/article/7e8c9da3-2235-44ec-bb86-d66dca1efac2 source: "1851 Franchise" original_url: https://1851franchise.com/february-jobs-report-us-unemployment-holds-under-five-percent-3863 category: "General" published: 2016-03-07T21:16:00.000Z modified: 2026-11-01T13:24:17.361Z image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/66061b010594ec96d288313d17b3c7006340160307151534.png --- # February Jobs Report: U.S. Unemployment Holds Under Five Percent **TL;DR:** The traditional franchise sales model is failing due to prioritization of short-term success and lack of transparency, according to Art Coley, CEO of CGI Franchise. Coley advocates for transparency and recruitment strategies aligned with long-term franchisee success. *originally published in 1851 Franchise on 2016-03-07. [Read the original](https://1851franchise.com/february-jobs-report-us-unemployment-holds-under-five-percent-3863).* ## 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. - 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. Art Coley, CEO of CGI Franchise and the ROS Framework, said on a recent episode of the Meet the Franchise podcast, "We've got to be willing to get honest, even if that means a headline or news gets out that isn’t pretty." 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. Coley bases his strategies on one enduring principle: a great business model is only as strong as the recruitment system behind it. 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, Coley said. 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. 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. We have a proven system that works, and we can show any franchisor the data, he said. Personally, I feel like I'm finally getting the opportunity to make meaningful changes in our industry, which is very fulfilling. Nick Powills, Publisher of 1851 Franchise, said, "I hear everybody coming back from the Franchise Development Conference, and I keep on hearing the numbers: 'The cost per deal is $13,000, and the cost per lead is this.' I hear this stuff, and I start getting frustrated by it." Powills emphasized the importance of unit-level economics, saying that if you can't make money, you can't get a payback on your initial investment, or if it takes a long time, it's going to be harder to sell franchises. The brokers have already disrupted everything. They're capturing all the leads. So I hear these data points, and then I talk with franchisors that are using it as a reference point, and I get irritated by it, because I'm like, "Why don't we just look at your specific data?" - Art Coley Coley said, "It hurts. The industry data stuff in franchising, it reminds me of that phrase, 'The road to hell is paved with good intentions.' I don’t mean that in a sarcastic or humorous spirit; I'm serious." Coley emphasized that people in the industry are trying to offer help, but often, the information is mistaken or false. 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." ## Entities - 1851 Franchise (publication) - General (sector) - Nick Powills (person) - Federal Trade Commission (regulator) - transparency (topic) - Art Coley (person) - CGI Franchise (company) - recruitment strategies (topic) - franchise sales model (topic) - unit-level profitability (topic) --- Originally reported by 1851 Franchise (https://1851franchise.com/february-jobs-report-us-unemployment-holds-under-five-percent-3863). Summarized by Burnaze (https://burnaze.com/article/7e8c9da3-2235-44ec-bb86-d66dca1efac2).