Franchise Update Magazine Issue II, 2017 | Page 74
GROWING YOUR SYSTEM
Market
trends
Fake News and Franchising
A chance to build trust and understanding
BY DARRELL JOHNSON
O
ne of the more concerning les-
sons we learned from the 2016
election is the power of “fake
news” to change perceptions and draw
attention toward or away from an issue.
Notwithstanding the political damage
these stories attempt to create, they also
can lead to tragic consequences for ev-
eryday people and businesses. Some are
done to influence popular opinion, others
just to make a buck. It is the latter reason
that got me thinking about the ramifica-
tions and possible steps franchising should
consider taking.
I see a parallel between the battles with
fake news and the misunderstandings of
the franchise business model. Putting
aside any political motivations, many fake
news stories are simply based on a profit
motive. Fake news is nothing new and
has been used, probably for centuries, by
companies to boost their own perception
or undermine their competition. What
has changed is the speed at which fake
news can spread.
Companies like Facebook and Google
touch billions of people daily. Their al-
gorithms are designed to capture activity
that generates ad revenue; the more activ-
ity, the more the ad revenue. Nefarious
computer specialists use bots to create
false activity, and the fake story, accom-
panied by advertising, is off to the races.
Facebook and Google have said they will
crack down on fake news websites. In
other words, they will try to do the right
thing, even though it will hurt their rev-
enue. I’m sure they mean it, but even with
the best of intentions, will their actions
be effective in a bot-driven world? That
clearly is being answered with a resound-
ing “No,” given all the misinformation we
have today. Facebook and Google are not
the guilty parties in creating this disease,
although they may be criticized for host-
ing it, however unintentionally. Creating
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Franchiseupdate ISS U E II, 2 0 1 7
and hosting are two different issues, and
creating seems to me the greater evil.
All news “sources” face the same prob-
lem: How do they provide credibility in
a world that demands rapid reporting?
Years ago when a well-known national
news anchor was retiring and was asked
what his greatest accomplishment was, he
said he was most proud that Americans
didn’t know his personal political views.
I see a parallel
between the
battles with fake
news and the
misunderstandings
of the franchise
business model.
A strong argument can be made that
news became biased because it couldn’t
satisfy the objectivity required to create
trust within the time that people wanted
the news. It takes time to fact-check a
story. If we could provide in-the-moment
news that has been properly fact-checked,
evaluated, and confirmed as accurate before
opinions are interjected, we would restore
trust in news. In a video streaming world
it seems to be all but impossible for news
providers to apply the Reagan doctrine
of “Trust, but verify.”
Franchising’s opportunity
I think the real fake news enemy we are
fighting is time. Yet the mistrust with news
today is an opportunity for the franchise
community. In a world of mistrust, having
something that you can trust will stand
out. There are lots of certification and
verification examples out there. Look-
ing no further than the cord attached to
the computer I’m typing on, there is a
sticker that says “UL Approved.” What
does that mean? I think it means that the
cord has been independently tested and
certified as having met certain standards
so I can leave it plugged in and not burn
down the building.
Does franchising need a “Good House-
keeping” sticker? It depends on the signifi-
cance of the topic. The franchise business
model has been through some bruising
years of legislative and regulatory attacks
where battle lines often were drawn based
on perceptions, not realities. In other
words, fake news. In those instances,
wouldn’t some fact-checking service have
been valuable?
Most of the issues the franchise business
model faces are not time-sensitive. That’s
a big advantage in solving the potential of
franchise fake news. A deliberative body
could take the time to address the issue
from multiple persp