Most franchise executives ignore their biggest growth opportunities. I’ve spent decades in franchising, and one thing’s clear: too many leaders focus on immediate returns and ignore long-term gains. It’s time to change that approach. Look at the franchise world. The usual suspects for growth are always mentioned—new locations, new markets, new products. These are essential, but they aren’t the only avenues.
Consider that existing franchisees can be your most potent growth engine or a massive liability. It all depends on how you treat them. Imagine that you’ve got a franchisee who’s thriving. He’s not just hitting numbers, he’s surpassing them. But instead of celebrating his success from a distance, dive into what’s fueling that growth. Is it a unique local marketing campaign? Stellar customer service? You need to uncover these strategies and spread them across your system.
Those referrals and LinkedIn success stories you hear about aren’t anomalies—they’re lessons waiting to be implemented. Franchisees talk and not just at those annual conventions, town hall calls, or on your internal forums. If they’re not recommending your franchise to their brother-in-law, you’ve got a problem. The potential for grassroots growth is staring you in the face. Franchisees also need to feel involved. I’m not suggesting holding everyone’s hand through decision-making. What I mean is incorporating real feedback when rolling out corporate initiatives.
Too often, executives become insulated, relying solely on data-driven insights and ignoring the pulse on the ground. Input from franchisees can pinpoint potential pitfalls before they become costly mistakes. The key here isn’t just support—it’s partnership. Develop a genuine interest in the stories unfolding within your franchisees’ locations. Witness their struggles and successes firsthand. This isn’t touchy-feely rhetoric. The franchisees should see you not just as a figurehead, but as an ally in their growth.
Another often-missed opportunity? The power of tech tools. Many executive teams pay lip service to innovation, touting the latest POS upgrades or customer app. But how well are they equipped to make franchisees’ lives easier? While shiny tech grabs attention, the real question is whether it’s pushing efficiency and margins. Let’s tackle the elephant in the room. Franchisees can be resistant to change, especially when new tools disrupt their established routines.
However, the onus is on you to demonstrate clear, tangible benefits. That doesn’t mean unleashing a tidal wave of technology across the system overnight. Introduce changes gradually, and prove their worth. Ensure your technology answers real operational challenges. If it’s just a minor upgrade with a hefty price tag, reconsider your priorities. There’s another hidden gem—successful franchisee stories. I can’t stress this enough. Turn success stories into tangible resources. Use them as the backbone of your training materials.
Here’s a bold truth—real success stories are your secret weapon, more impactful than generic motivational chats. Share these narratives far and wide. Here’s a quote to remember, if franchisees aren’t singing your praises to every potential recruit they meet, you are underutilizing your biggest asset.
In closing, growth isn’t just about opening doors in every city or investing heavily in marketing. It’s about recognizing the diamonds stashed within your system. Listen, learn, and implement the overlooked strategies that evolve from your frontline warriors. Want to explore how this applies to your brand? Let’s talk
Dr. John P. Hayes, CFE Keith Gerson Gerson Advisory Services Titus Center for Franchising at Palm Beach Atlantic University Titus Center Interns Joe Caruso Michael (Mike) Webster PhD
Editor – Recent graduate of the Titus Center for Franchising at Palm Beach Atlantic University, Alessia Passerini
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Keith Gerson, CFE, is a globally recognized franchising expert with 50 years of experience. As President & CEO of Gerson Advisory Services, he’s known as a super-connector, trusted advisor to top franchisor CEOs, and thought leader whose webinars, articles, and the FranConnect Franchise Sales Index Report have earned him a massive industry following.