What Your Franchisees Don’t Know Might Be Costing Your Brand
As a franchisor, you’ve probably experienced this: the brand grows steadily, franchisees are joining, but suddenly something feels off. Franchisee performance slows, cracks appear in your system, and frustration sets in for everyone involved.
Usually, it’s not about the quality of the product. It’s rarely about the franchise playbook. More often than not, the issue is much more foundational—it’s about basic business skills.
Franchisees get trained on how to run the business, but not how to own the business.
Let’s explore that a bit deeper.
The Gap: Operating vs. Owning
Most franchisees buy into a brand to build wealth, control their destiny, and capitalize on a proven model. They learn operations thoroughly:
-
- How to make the product
-
- How to manage daily tasks
-
- How to use technology platforms
But there’s a critical gap in their training—business ownership fundamentals. This includes things like:
-
- Understanding financial statements
-
- Managing cash flow effectively
-
- Budgeting for growth
-
- Navigating hiring, taxes, compliance, and other key responsibilities
I often tell franchisees:
If you're running your business solely from your checkbook balance, it's a hobby, not a sustainable business.
This knowledge gap isn’t just a minor inconvenience—it leads to stress, confusion, poor decision-making, and ultimately stalls franchisee growth. That directly affects the health of the entire brand.
How Franchisors Can Close the Gap
The good news is that franchisors can—and should—address these foundational gaps proactively. Here’s how:
-
Add business ownership training modules to onboarding and ongoing training programs.
-
Bring in outside business coaches or financial experts to work hands-on with franchisees.
-
Host regular workshops or webinars focused specifically on business fundamentals.
The goal is simple: help franchisees confidently answer these questions:
-
Am I truly profitable?
-
Do I have the financial margins needed to grow my business?
-
Can I afford to hire help when it’s needed?
When franchisees understand their business fundamentals clearly, their confidence—and their performance—improves dramatically.
Advice for Suppliers: Add Value First, Sell Later
This principle also applies to suppliers and vendors who support franchise systems. Too many suppliers enter the franchise industry expecting quick sales. They often leave frustrated within a year or two when results don’t come quickly.
The truth is, trust and relationships in franchising take time—often five years or more. Franchise brands need to know you’re genuinely committed to their long-term success.
Instead of focusing immediately on selling your products or services, suppliers should first offer meaningful value. Ask to speak at Franchise Advisory Council meetings—not to sell, but to educate. Provide genuine insights, tools, and resources that help franchisees succeed.
When you genuinely contribute first, lasting relationships naturally follow.
Franchising Thrives When Everyone Knows Their Role
The franchising model is incredibly powerful. But it only truly works when each participant clearly understands and executes their role:
-
Franchisors establish strong foundational training and support.
-
Franchisees commit to mastering both operational and ownership fundamentals.
-
Suppliers add value through education, support, and long-term partnership.
When all three align, franchise brands flourish.
If you’re seeing the kind of foundational gaps I’ve described in your franchise system, let’s talk. Helping franchisors and franchisees bridge these gaps is exactly the type of work I do, and I’d love to help your brand thrive.
Together, let’s ensure nobody is held back by missing fundamentals.
