Thought-Leadership

A silent crisis is unfolding in the dynamic world of franchising, where entrepreneurial dreams intersect with proven business models. It threatens the success of ambitious franchisees and the growth of entire franchise systems. The culprit? There is a startling lack of specialized training for multi-unit franchise owners.

Imagine Sarah, a successful single-unit franchisee of a popular fast-food chain. Buoyed by her success, she expanded, acquiring two more units with her franchisor’s blessing. But as her empire grows, so does her sense of being overwhelmed. Managing multiple locations, Sarah quickly realizes, is a whole new ballgame—one for which she feels woefully unprepared.

Sarah’s story is far from unique. A recent review of several hundred franchise disclosure documents revealed a disturbing trend: only a tiny fraction of franchisors offer formal training on the nuances of multi-unit ownership. It’s like asking pilots trained for single-engine planes to captain a commercial jet fleet suddenly without additional instruction.

The jump from single to multi-unit ownership is like going from checkers to chess… the rules are similar, but the strategy is entirely different.

The Multi-Unit Sales Boom: A Double-Edged Sword

Before discussing the essential components of multi-unit ownership training, it’s crucial to address a growing trend in the franchise industry exacerbating this hidden crisis: the boom in multi-unit franchise sales.

Franchise brokers, incentivized by commission structures that reward larger deals, have been increasingly pushing the sale of multi-unit packages—often in bundles of three, five, or even ten packs. It’s not hard to see why: brokers stand to earn substantially more from these multi-unit deals compared to single-location sales.

The allure of rapid expansion is strong. However, many prospective franchisees don’t realize that managing multiple units requires a different skill set than running a single location.

While lucrative for brokers and appealing to ambitious entrepreneurs, this trend could be a recipe for disaster if franchisors don’t have robust training systems. The gap between the skills needed for single-unit and multi-unit ownership is vast, and without proper preparation, new multi-unit franchisees may find themselves overwhelmed and underprepared.

Before accepting multi-unit leads, franchisors must ensure their training and development systems are equipped to handle the complexities of multi-unit ownership. Otherwise, they’re setting up their franchisees—and ultimately themselves—for failure.

1. The Art of Strategic Thinking

The first lesson in Multi-Unit Ownership 101 is that you can’t be everywhere at once. Successful multi-unit franchisees learn to work “on” the business rather than “in” it. This means stepping back from day-to-day operations to focus on big-picture strategy.

“I had to learn to let go,” confesses Pat, a multi-unit owner of a leading personal services franchise brand that treats families for head lice infestations. “Realizing that my job was to guide the ship, not to staff every station, was a game-changer.”

This strategic thinking involves:

– Long-term growth planning

– Resource allocation across units

– Brand consistency and development

2. Building a Management Dream Team

With multiple locations to oversee, having a reliable manager at each unit isn’t just helpful—it’s essential. But how do you find, train, and retain these crucial team members?

Effective multi-unit training programs teach franchisees the finer points of:

– Hiring and developing talented managers

– Delegating responsibilities effectively

– Building and leading a cohesive management team

– Fostering a positive organizational culture across all units

“Creating a cohesive culture across multiple units was my biggest challenge,” acknowledges Bill, a multi-unit, multi-branded franchisee who owns several units of a leading QSR restaurant brand and a beauty salon franchise. “Each location had its personality, and bringing them all under one vision took skills I had to learn on the fly.”

3. Crunching the Numbers (Without Getting Crunched)

Financial management takes on a new dimension when dealing with multiple units. Multi-unit and multi-brand franchisees need to understand:

– Complex budgeting processes for multiple locations

– How to allocate resources effectively across units

– The potential for and implementation of economies of scale

– Advanced financial analysis and forecasting

“I wish someone had taught me about the financial intricacies of multi-unit ownership earlier,” Sarah reflects. “It would have saved me a lot of sleepless nights and costly mistakes.”

4. Harnessing the Power of Technology

Technology is the multi-unit franchisee’s best friend in today’s digital age. Tech-savvy is no longer optional, from point-of-sale systems that provide real-time data across all locations to analytics tools that help identify trends and opportunities.

Training in this area should cover:

– Implementing systems for multi-unit oversight

– Analyzing and interpreting Key Performance Indicators (KPIs) across multiple locations

– Utilizing data to make informed business decisions

Enter franchise management software like FranConnect and learning management systems (LMS) like World Manager. These powerful platforms are revolutionizing franchise operations and training, offering a centralized single source of truth, a hub for playbooks, performance tracking, and learning and development activities.

“World Manager has been a game-changer for us,” says Collin, a multi-unit owner of a famous QSR franchise brand. “Its gamification features have made training fun and competitive, dramatically improving engagement and knowledge retention among our staff.”

Indeed, gamification—applying game-design elements to non-game contexts—is a powerful tool in franchise training. Leaderboards, badges, and point systems tap into employees’ natural desire for competition and achievement, making learning more enjoyable and effective.

5. Mastering the Human Element

With a larger workforce comes greater HR responsibilities. Multi-unit franchisees need to be adept at:

– Conducting performance reviews across multiple units

– Managing conflicts and maintaining morale

– Developing and implementing standardized HR policies

– Creating and maintaining a consistent culture across all locations

6. Becoming a Master Trainer

One often overlooked aspect of multi-unit ownership is the need for franchisees to become effective trainers. This is where “train the trainer” programs come into play.

“Learning how to teach others was a pivotal moment in my multi-unit journey,” reflects Mark, owner of several automotive service franchises. “It allowed me to scale my operations while maintaining consistency across all locations efficiently.”

Train-the-trainer programs equip multi-unit franchisees with the skills to effectively pass on their knowledge and the franchisor’s systems to their managers and staff. This ensures unit consistency and empowers franchisees to build strong, self-sufficient teams.

Many franchisors are now incorporating train-the-trainer modules into their multi-unit training programs, recognizing that effectively training others is a crucial skill for successful multi-unit ownership.

The Franchisor’s Responsibility

Given the increasing prevalence of multi-unit deals, franchisors are responsible for ensuring their training programs are up to the task. This means expanding existing single-unit training and developing comprehensive, multi-unit-specific programs that address the unique challenges of managing multiple locations.

“Franchisors need to resist the temptation of rapid expansion through multi-unit sales if they can’t support it with equally robust training,” warns Sean Fitzgerald, the President of Tru Blue Home Service Ally. “The long-term costs of franchisee failure and system instability can quickly overshadow the short-term gains from selling multi-unit packages.” Nothing will cause your franchise sales program to stall more than having multi-unit failures.”

The message for franchisors considering multi-unit expansion is clear: before you begin accepting multi-unit leads, ensure you have your training and development house in order. This might mean:

1. Developing specific multi-unit training modules
2. Creating mentorship programs pairing new multi-unit owners with experienced ones
3. Investing in advanced learning management systems to facilitate ongoing training
4. Establishing clear benchmarks for multi-unit readiness

By taking these steps, franchisors can ensure they’re not just selling multi-unit packages but setting their franchisees up for multi-unit success.

The Benefits of Addressing the Training Gap

The advantages of comprehensive multi-unit training are clear:

– For franchisees: Smoother operations, faster growth, and higher profits

– For franchisors: Stronger system-wide performance and more rapid expansion

So why isn’t this training more widespread? Some franchisors argue that multi-unit skills are best learned through experience. Others haven’t recognized the need. However, as the franchise industry continues to evolve, with multi-unit ownership becoming increasingly common, this gap in training is becoming impossible to ignore.

The Path Forward

The good news is that change is on the horizon. Forward-thinking franchisors are beginning to implement comprehensive multi-unit training programs. These programs often combine:

– Classroom learning

– On-site training

– Ongoing support and mentorship

– Advanced LMS platforms for continuous, engaging training experiences

As for Sarah? After some initial struggles, she sought mentorship from experienced multi-unit owners and invested in her education. Today, she’s the proud owner of five thriving locations and is considering expanding further. She’s also become an advocate for comprehensive multi-unit training within her franchise system, pushing for the adoption of advanced learning technologies and train-the-trainer programs.

Conclusion

The lesson is clear: success in franchising is about more than following a proven system. It’s about having the right skills and knowledge to scale that system effectively. As the franchise business format continues to grow and evolve, closing the multi-unit training gap isn’t just an opportunity—it’s an imperative.

For franchisors, the message is simple: invest in comprehensive multi-unit training now, or risk watching your most ambitious franchisees struggle unnecessarily. This means developing robust training programs and leveraging cutting-edge learning technologies and methodologies to deliver them effectively.

And for aspiring multi-unit franchisees? Don’t wait for someone else to prepare you for success. Seek the knowledge and skills you need, embrace new learning technologies, and prepare yourself to become an owner, teacher, and leader. With the proper training and tools, you’ll be well on your way to building your franchise empire.

In the end, bridging this hidden gap in franchise training isn’t just about avoiding failure—it’s about unlocking the full potential of the franchise model. In doing so, we can ensure that the next generation of multi-unit franchisees isn’t just surviving and thriving in an increasingly complex and competitive business landscape.

When I first entered the world of franchising in the early ’70s, we didn’t even have fax machines, let alone the cutting-edge technology we rely on today. Back then, I’d carry around a briefcase filled with paper reports to every franchisee visit. Fast forward to now, as President and CEO of Gerson Advisory Services and former President of Franchise Operations for FranConnect, I’ve witnessed firsthand how technology—especially AI—is revolutionizing our industry. It’s been quite the journey, and today I want to share some insights on where we’re headed next.

The Chief Franchise Experience Officer (CFXO): Not Just Another Title

I recently had a conversation with Scott, a franchisor client of mine. He was puzzled. His top-performing franchisee was threatening to leave, despite having excellent numbers. “Keith,” he said, “I don’t get it. Their performance is stellar, but they’re still unhappy. What am I missing?”

This scenario underscores why I’ve been advocating for the role of Chief Franchise Experience Officer (CFXO). A CFXO isn’t just another fancy C-suite title. This role focuses on franchisee happiness and engagement, acting as the system’s empathy engine. In Scott’s case, a CFXO would have identified the problem early on—while the franchisee’s financials were strong, they hadn’t received meaningful support or recognition in months. It’s often not just about numbers; it’s about feeling valued.

From Consultant to Coach: Evolving Support for Franchisees

In the old days, the role of a Franchise Business Consultant was fairly cut and dry—show up, check some boxes, and move on. Thankfully, those days are behind us. Today, franchisees need much more than oversight; they need support that empowers them to succeed.

I recently heard a franchisee at a conference say, “I don’t need someone telling me to ‘increase sales.’ I need someone who can show me how.” That sentiment has stuck with me because it perfectly encapsulates the shift we’re witnessing in franchise support. We’re evolving toward the role of Franchise Success Coaches (FSCs), who act as a mix of business strategist, psychologist, and cheerleader. These coaches don’t just look at numbers—they help franchisees with everything from staff morale to local marketing strategies.

One of my clients adopted this approach last year, and the results were striking: customer satisfaction scores rose by 22%. Why? Because the FSCs focused on more than sales figures. They helped franchisees build strong teams and improve customer experiences, which translated into better business performance.

Tiered Support: A Tailored Approach for Franchisee Success

Here’s a hard truth I’ve learned over the years: a franchisee who’s been in business for 10 years needs vastly different support than someone who just opened their doors. Yet, many systems still take a one-size-fits-all approach to franchisee support.

I’ve spoken with long-term franchisees who expressed frustration over having to sit through the same basic training year after year. What they need is advanced strategies and peer networking opportunities, not repetitive training sessions. That’s where tiered support comes in. New franchisees should receive intensive, hands-on assistance, while veterans should get tailored strategies that push their growth to the next level. It’s not about giving less support to experienced franchisees—it’s about providing the right kind of support at every stage of their journey.

The Power of Real-Time Data: From Information to Action

I’ll never forget 1991, when I was working with a specialty food franchise that installed its first real-time POS system. Watching sales figures roll in live for the first time was like witnessing magic. Today, the data we have access to is even more mind-blowing, but data alone isn’t enough.

One of my clients recently used real-time data to spot a trend in negative reviews about the speed of service. By working with franchisees to address the issue, they saw a 15% increase in positive reviews in just three months. The key here isn’t the data itself—it’s how we use it to drive action and improvements.

Revolutionizing Franchise Operations with Playbooks

One of the most exciting developments in recent years is the use of playbooks to standardize best practices across franchise systems. Playbooks allow franchisors to turn data into immediate, actionable insights. For example, if a franchise location’s cleanliness scores drop below a certain threshold, the system can automatically assign a detailed cleaning playbook to that franchisee. It’s like having your best performers mentor every location, but on a scalable, automated level.

FranConnect has been a leader in developing these playbooks, and they’ve proven to be a game-changer for driving consistent performance across franchise systems.

AI and Machine Learning: The Next Frontier in Franchising

I’ll admit, when I first heard about AI being applied to franchising, I had my reservations. Concerns about data privacy, ethical issues, and the lack of a human touch made me skeptical. But I’ve since come around. Last year, I learned about a franchise system that used AI to generate customized performance improvement playbooks for each of their 500 locations. The results were tailored solutions that helped franchisees address specific challenges.

The real breakthrough came when the CEO told me, “For the first time, I feel like the advice we’re giving is truly tailored to each franchisee’s location, not just generic strategies.” AI is enabling a level of customization and precision we’ve never seen before.

The Hybrid Model: Balancing Technology and Personal Touch

The pandemic forced us to adapt to virtual communication, and while it wasn’t smooth at first, we’ve learned to balance high-tech efficiency with the need for personal, face-to-face interaction. Many franchisors are now adopting a hybrid model, combining in-person visits with virtual check-ins. This approach allows for the best of both worlds: the efficiency of technology with the personal touch that builds strong franchisee relationships.

Looking Ahead: Change is the Only Constant

As I reflect on my five decades in franchising, one thing is clear—this industry never stops evolving. The challenges we face today are different from those we faced in the ’80s or ’90s, but the core mission remains the same: supporting franchisees in building successful, sustainable businesses.

The future of franchising lies in embracing technology without losing the human touch. It’s about using data to inform decisions while maintaining strong relationships. Most importantly, it’s about providing tailored support that evolves as our franchisees grow.

It won’t be easy, but then again, the most rewarding things rarely are. Here’s to the future of franchising—it’s going to be one heck of a ride!

Are you struggling to attract quality candidates and fill open roles? You’re not alone. In today’s tight labor market, businesses across industries are facing an uphill battle when it comes to recruitment and retention.

By using strategic and creative recruiting tactics, you can gain an edge over the competition in finding top talent. This guide covers 10 proven approaches to help you solve your hiring headaches once and for all.

From leveraging social media and employee referrals to hosting unforgettable hiring events and revamping your job descriptions, you’ll get an action plan for modernizing your recruitment efforts. You’ll also learn how to build a compelling employer brand, offer incentives that move the needle, and reduce turnover through impactful retention initiatives.

Let’s dive into the top 10 tactics:

1. Build a Magnetic Employer Brand: What comes to mind when candidates think of your company? Your employer brand encompasses your reputation, values, and workplace culture. With today’s candidates prioritizing more than just pay, you need to showcase what makes your company unique and desirable. Use multiple channels to highlight your employer brand – your careers website, social media, Glassdoor, and more. Share photos and videos that give a glimpse into your culture. Encourage employees to get involved in reinforcing your brand messaging.
2. Tap Into Social Media Recruiting: Speaking of social media, are you taking full advantage of platforms like Instagram, TikTok, and Facebook to attract talent? Over 62% of companies are using social recruiting for hourly roles. Devise a social media strategy to both build your employer brand and actively source candidates. Use relevant hashtags, engage niche communities, and create compelling content that paints your company in the best light
3. Maximize Job Boards & Applicant Tracking: While social media is an increasingly important channel, don’t overlook more traditional tactics. Leverage top job boards like Indeed, ZipRecruiter, and LinkedIn to post openings. But go beyond just posting jobs. Implement an applicant tracking system to streamline processes like screening resumes, scheduling interviews, and managing communication with candidates. Many integrations can automate manual tasks.
4. Get Creative with Incentives: With so many companies vying for talent, compelling incentives can help your openings stand out. Research shows that 77% of employers now offer perks like increased hourly pay, sign-on bonuses, tuition assistance, and more. Get creative with incentives that will resonate with your target candidates. Free food, room discounts, childcare benefits, and other unique perks could sway candidates in your favor
5. Incentivize Employee Referrals: While Glassdoor, job postings, and social media are useful discovery channels for open roles, research shows that referred candidates are of higher quality. Referrals produce 25% more profit than those hired through other methods. Create a formalized employee referral program with attractive incentives to get your team involved in recruiting their networks. Offer cash rewards, paid time off, or donation matching to charity.
6. Think Outside Traditional Channels: While you have to start with the standard channels, getting creative with recruitment sources can pay off. Consider “temp to hire” staffing agencies, local networking groups, area colleges, or even sourcing from entirely different industries.
7. Host Unforgettable Hiring Events: Job fairs and hiring events have evolved to be much more engaging experiences. Host themed events with gamification, speed interviews, simulations, and prizes to show off your company culture while evaluating talent.
8. Recast Job Descriptions: Don’t get stuck with a narrow talent pool due to strict job requirements. Consider recasting job descriptions to focus on transferrable skills rather than specific experience. Opening the aperture allows you to identify hidden talent.
9. Prioritize Retention: While recruitment is critical, retention efforts are equally important to reduce costly turnover. Prioritize training, growth opportunities, employee recognition, and building a supportive workplace culture to keep top performers engaged and motivated.
10. Track Recruiting Metrics: To optimize your recruiting strategy, you need to measure key performance indicators like time to hire, source of hires, offer acceptance rates, and cost per hire. With the right data, you can double down on your most effective tactics.

It is essential to take a multi-pronged approach to entice top talent. By building an exceptional employer brand, creatively promoting openings across channels, offering compelling incentives, and prioritizing retention, you can gain an edge over the competition.

Franchise fee structures play a critical role in a brand’s performance and growth potential, according to a comprehensive two-year study analyzing over 2,400 Franchise Disclosure Documents.

The Initial Franchise Fee and Higher Revenue Potential

The study revealed a notable correlation between the initial franchise fee (IFF) amount and a brand’s revenue per location. Franchisors charging IFFs around $40,000 or higher enjoyed an average revenue of 

$1.5 million per franchise – a whopping 2.5 times greater than brands with fees of $25,000 or less (averaging $583,000 per location).

This suggests franchisees may have a willingness to invest more upfront for the chance at higher revenue potential. Franchisors should consider raising initial fees to strengthen brand value and fuel growth.

Royalty Fees Equate to Stronger Support

Almost every franchise (94%) charges an ongoing royalty fee, primarily as a percentage of monthly revenues averaging 6%. The data shows consistency, with 80% of brands charging royalties within 2% of the median.

This recurring fee funds the franchisor’s operational support critical to franchisee success. The small percentage not charging royalties are typically “product distribution” models where franchisees pay more for proprietary products instead.

Balanced National and Local Marketing

Successful franchises balance national advertising funded by fees (levied by 72% of brands, predominantly as a percentage of revenues) with required local marketing spending (mandated by 55% of franchisors, averaging 2% of revenues).

This balanced investment in marketing at both levels is vital for a franchise to remain competitive and drive franchisee sales.

Technology Fees Drive Competitive Advantage

In today’s environment, strategic technology investments are critical for franchisors to maintain a competitive edge and operational efficiency across the system. A majority (61.9%) now charge technology fees, mostly flat monthly rates.

Notably, franchisors charging tech fees were found to grow 36% faster over two years compared to those not charging them. Half of franchisees also acknowledge the significant value derived from franchisor-provided technology.

Future-Proof Your Franchise with a Technology Fee

In today’s rapidly evolving business landscape, technology is no longer a luxury – it’s a necessity for survival. Companies across all industries are investing heavily in digital tools and systems to drive operational efficiency, enhance marketing impact, streamline sales management, and deliver exceptional customer experiences.

The franchising world is no exception. To maintain a competitive edge and provide sustainable businesses, modern franchise brands must have the ability to adapt their technology stack as market needs change. One powerful way franchisors can position themselves for long-term success is by implementing a technology fee.

The Advantages of a Dedicated Technology Fee

A technology fee provides numerous benefits that can future-proof a franchise system and facilitate continual innovation. Here are some key advantages:

• Differentiate Your Franchise Offering: The technology platforms and digital capabilities you’re able to provide franchisees can be a huge differentiator. A steady revenue stream from a technology fee enables you to invest in best-in-class tools that increase effectiveness and efficiency across operations, marketing, sales, customer communications, and more.
• Spread Costs Equitably Across the System: Often, franchisors bear the lion’s share of expenses when implementing new technologies across all locations. A technology fee helps spread these costs fairly among all participating entities so the investment burden doesn’t fall disproportionately on the franchisor. Everyone contributes and everyone benefits from the innovations.
• Adapt Nimbly to Changes: By drafting the technology fee broadly in your franchise disclosure document (FDD), you gain flexibility to adapt as needs evolve without modifying agreements. If you didn’t originally plan for a new system like a royalty management application, the technology fee funds can support rolling it out across the brand.  No cumbersome contract updates required.
• Drive Continual Innovation: Perhaps most importantly, having a dedicated technology fee revenue stream allows you to continually invest in keeping your system on the cutting edge. As new tools and capabilities emerge, you can rapidly embrace what will deliver competitive advantages. This commitment to innovation helps protect the long-term viability and health of your franchise.

For franchisors looking to implement a technology fee or make adjustments to an existing fee, it’s wise to consult experts who can share prevailing practices around structuring, franchisee communication strategies, and optimizing the revenue to drive high-impact investments. With a forward-thinking approach in this area, you can position your franchise as an industry leader.

The franchising landscape will keep evolving at a furious pace. By implementing a technology fee, you equip your system to evolve along with it – continuously refreshing capabilities, delighting customers, and delivering exceptional franchisee experiences that will keep your brand thriving for years to come.

Charging technology or system fees is important for franchisors for a few key reasons:

• Revenue stream – These ongoing fees provide a steady revenue stream for the franchisor beyond just the upfront franchise fees. This income helps fund system-wide technology investments, marketing, operational support, and other expenses for maintaining the brand standards.
• Technology advantage – The fees collected can allow the franchisor to invest in robust technology platforms, data systems, mobile apps, digital marketing capabilities etc. that may give their franchisees a competitive advantage through modern solutions.
• Brand consistency – When franchisees utilize the same mandated technology and systems funded by these fees, it promotes brand standardization and consistent customer experiences across all franchise locations.
• Economics of scale – By requiring all franchisees to contribute fees, the franchisor can leverage the scale of the entire system to negotiate better pricing on technology, marketing, and other services.

So in summary, technology and similar fees paid by franchisees to franchisors enable investment in solutions that enhance brand value while providing revenue diversification for the franchisor’s business model long-term. This can foster faster system growth beneficial to both parties.

Franchise lead generation and nurturing is a challenging but critical process. Many franchise brands struggle with “ghost leads” – prospects who engage initially but then go silent and unresponsive. There are also “dead leads” that have been designated as no longer actively pursuing franchise ownership after a certain period of engagement.

However, these ghost and dead leads shouldn’t necessarily be given up on entirely.

• It takes an average of 189 days from initial lead to deal closure for emerging franchise brands (11-75 locations), FranConnect Franchise Sales Index
• 30-40% of leads drop off after the introduction and first call stages before serious evaluation, FranConnect Franchise Sales Index

So what can franchisors do to re-engage these dormant prospects? Leading franchise experts recommend taking a strategic approach with timing, messaging, content, and tracking:

Timing

• Start reaching back out to dead leads around 30 days after being classified as dead
• Have a recurring cadence, like monthly or quarterly
• But don’t bombard them too frequently

Messaging & Content

• Share exciting brand news, PR, and success stories from franchisees
• Highlight reasons why they inquired initially
• Use a variety of content like videos, blogs, testimonials
• Include a clear call to action to re-engage

Methods

• Email marketing
• Print newsletters
• Phone calls
• Text messages
• Direct mail
• Tracking

Monitor email open rates, website traffic, lead activity

• Use a CRM to analyze engagement metrics
• Don’t continue efforts on hard opt-outs

While persistence is key, franchisors must also balance between nurturing and being overly persistent to the point of annoyance. The goal is to provide value and rekindle interest with the right messaging at the right frequency.

Is your brand taking a proactive approach to capturing ghost leads and resurrecting the dead?

The franchise world is changing rapidly, and franchisors need to evolve their sales strategies to keep up. Over the past three years, we’ve seen a drastic shift in franchise buyers’ attitudes and expectations. If you want your franchise organization to survive and thrive in this dynamic environment, you must be open to change. 

Here are seven key areas to focus on:

1. Persevere with Leads 

Too many franchisors give up on new leads far too quickly. Research shows prospects need to see your message at least seven times before taking action, with 20+ touchpoints often required to close a sale. Develop an omnichannel nurture campaign with content tailored to each stage of the buyer’s journey.

2.  Provide Timely, Relevant Content

Having great content isn’t enough – you need the right content unveiled at the right time. In addition to leading nurture content, prepare materials for deeper stages like reviewing the FDD, discovery day prep, conducting franchisee validation, and more. Their engagement metrics can indicate buyer interest.

3. Walk in Your Prospects’ Shoes 

Understand the emotional highs and lows prospects experience from initial research, through evaluation and comparison, to their final purchase decision. Though your brand may differ, buyer questions and concerns are often universal. Ensure your content addresses these across multiple channels.

4. Realign Communication Hierarchy 

The phone isn’t king anymore – prospects often ignore unknown numbers. Instead, leverage SMS text (295% higher response rates than calls) and email strategically. Record virtual meetings to review later and share recaps with prospects.

5. Allocate Marketing Spend Wisely 

With franchisors spending $225K on average for franchise development, know your cost-per-lead and cost-per-sale by source. Stop spending on underperformers and reallocate funds to your best-converting lead sources.

6. Be Available When Buyers Want to Engage 

68% of sales appointments are booked outside traditional hours, and 65% of closed sales engaged the prospect within 4 hours of their initial interest. Use technology like AI text messaging or staffing strategies to ensure rapid response times.

7. Monitor Leading Indicators 

Look beyond typical topline metrics like leads and sales. Leading indicators like lead source, applications by source, and booked (and kept) appointments can help identify your strongest and weakest performers to double down or cut bait.

Implementing these best practices can seem straightforward, but developing the “muscle memory” for consistent execution is key. Ensure your team uses an effective franchise sales CRM and that you hold them accountable. As sales leaders, inspect what you expect from your processes and people.

The Top 7 Reasons Franchise Sales Teams Fall Short (franchising.com)

As a franchisor, your ultimate goal should be creating a thriving franchise network where both the brand and franchisees mutually succeed. However, achieving that balanced, symbiotic relationship requires diligent effort and commitment to certain core principles. From personal experience and dialogues with franchising’s greatest minds, here are 9 critical lessons that every franchisor should embrace:

Gain Visibility into Unit Economics:

Too many franchisors operate in the dark when it comes to their franchisees’ profitability at the unit level. Only around 20% consistently collect and analyze profit and loss (P&L) statements from their franchisees. This is a disservice to the franchise model. How can you support franchisee success if you don’t intimately understand their unit economics? Collecting P&L data should be a foundational competency to identify struggling units, share best practices, and ensure the model works financially.

Commit to Transparency:

The franchise relationship should be built on transparency and trust from the outset. Unfortunately, many franchisors shy away from providing comprehensive financial performance representations (FPRs) in Item 19 of their Franchise Disclosure Document. Candidates deserve full visibility into the financial potential and unit-level profitability. If your numbers are strong, leverage that selling point! If not, fix your model before franchising further. Transparent disclosure is a hallmark of ethical franchising.

In the increasingly interconnected business landscape, reputation stands as a pivotal factor driving customer decisions and, consequently, sales growth. For franchise brands, understanding and leveraging the dynamics of reputation can be a game-changer. This article delves into the profound impact of reputation on sales and purchasing decisions, offering insights on how franchise brands can scale effectively.

A study by Harvard Business Review in 2016 revealed a compelling statistic: an average increase of one star in ratings equates to a 5.9% increase in revenue. This correlation between perceived quality and financial performance underscores the importance of reputation management. For franchises, where brand consistency is crucial, this translates into a strategic focus on maintaining high standards across all locations.

Location3’s 2017 study found that a 1.5-star rating increase can result in 13,000 more leads. For franchises, this means that even a marginal improvement in customer perception can significantly amplify their market reach and lead conversion.

In my published book, The Franchise Book of Mentors, I asked twenty three of the top executive leaders & mentors in franchising to either suggest one book that they have given as a gift to fellow executives, franchisees, or other franchisors, or one to three books that have had the most influence on their personal success oy happiness. Here are their recommendations with a brief synopsis.

Peopled by larger-than-life heroes and villains, charged with towering questions of good and evil, Atlas Shrugged is Ayn Rand’s magnum opus: a philosophical revolution told in the form of an action thriller — nominated as one of America’s best-loved novels by PBS’s The Great American Read.

McDonald’s has been a trendsetter in advertising, focusing on different demographics as well as the physically disabled. McDonald’s created McJobs, a program that employs both mentally challenged adults and senior citizens, And because its franchisees have their fingers on the pulse of the marketplace, McDonald’s has evolved successfully with the health food revolution, launching dozens of new products and moving toward environmentally safe packaging and recyclable goods. Inspiring, informative, and filled with behind-the-scenes stories, this remarkable saga offers an irresistible look inside a great American business success.

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