What to Expect When You Franchise

For a small business owner, franchising can be the ideal way to expand while getting off the tools, working on your business and, ultimately, your exit strategy. However, franchising is different from running an independent business. When you franchise, you’re no longer just managing operations; you’re empowering Franchise Partners, guiding them as independent business owners who are investing in your brand.

Here’s what this shift really looks like on a practical level and what to expect as you go from managing employees to leading Franchise Partners.

Supporting, Not Supervising

Unlike employees who work under your direct supervision, Franchise Partners run their own businesses. They’ll rely on you for support and advice, but they’ll have more independence.

Your focus will shift from managing tasks to providing resources and problem-solving guidance. Instead of handling daily operational details, you’ll be there to answer questions, help them overcome challenges, and troubleshoot issues that arise.

Franchise Partners may be motivated and eager, but they’ll also face learning curves. You will need to set up a system for ongoing support, like regular catchups and field visits. Knowing you’re there to guide them is one of the key reasons people invest in franchises.

Teaching Your ‘Playbook’

As a franchisor, you’ll have a detailed “playbook”, also known as an operations manual, that will guide Franchise Partners on replicating your business model. The operations manual will cover the key roles and responsibilities of running the business, including brand standards, customer service guidelines, and operational processes.

The operations manual's first function is as a training and onboarding tool. You will teach Franchise Partners to follow your systems and ensure they understand the principles that make your business successful.

The second function is to act as a medium for providing updates and changes to the system. As with any business, franchises must continually evolve and innovate to stay competitive, so any changes to systems, policies or procedures are updated in the operations manual to ensure Franchise Partners always have access to the most up-to-date information.

Guiding vs. Doing

As a franchisor, you’re no longer directly involved in every customer interaction or sale. Instead, you’ll be training and advising Franchise Partners on how to deliver the experience that customers expect from your brand. Think of yourself as a mentor…. With all the knowledge and expertise you have gained from running the business, you will now be helping others learn and apply it. As Franchise Partners settle into their new business, they become increasingly independent over time.

Adapting to Different Franchise Partner Needs

Each Franchise Partner will bring their own strengths, weaknesses, and perspectives. Some may be natural business owners, while others will need more support in areas like marketing or administration. Be prepared to adapt your coaching style to meet different needs. Some Franchise Partners will need more reassurance and encouragement than others. Developing a strong relationship with each one can help you tailor your support to where they need it most.

Balancing Independence and Brand Consistency

One of the biggest adjustments in franchising is allowing Franchise Partners a degree of independence while maintaining brand consistency. While you’ll be providing a framework for how things should be done (operations manual), Franchise Partners should have a bit of freedom in how they run their operations; otherwise, they will feel like glorified employees. The challenge is in balancing their autonomy with the need for consistent customer experiences.

A good approach is to establish clear brand guidelines, ensure Franchise Partners understand the importance of these standards, and offer flexibility in non-core areas. We’ll guide you to find the right balance.

Embracing the Role of Problem Solver

Franchise Partners will bring you a range of challenges that you may not have experienced in your single business location. From local competition to staffing issues, Franchise Partners will look to you for insights and solutions. You’re not there to solve their problems directly but rather to provide advice, resources, or examples from your own experiences.

The best approach is to establish a culture of knowledge-sharing where Franchise Partners can learn from each other’s successes and setbacks. This often takes place in regular network meetings where Franchise Partners can share their experiences and draw support and guidance from the wider franchise network and you.

Taking on a Strategic Perspective

In a single business, you’re involved in every little detail, but in a franchise, you’ll need to focus on the bigger picture. Your goal will be to grow the franchise network, maintain a positive reputation, and look for ways to support Franchise Partners in their growth. This strategic focus will involve creating new marketing campaigns, innovating products or services, and continually refining the business model.

Embrace a long-term view and focus on creating scalable solutions that benefit all Franchise Partners. Consistent growth and brand reputation are key to your success, so concentrate on ways to build these over time.