Five Habits of the Highly Successful Franchisor

Enhance your franchise system’s success and sustainability

Adopt and Refine Each of These Five Habits 

Faegre Drinker is committed to the growth and development of franchise networks in a wide range of industries. In partnering with our clients over the years, we have seen the attributes associated with highly successful franchisors and understand the business practices that lead to great franchise brands. Franchising is our passion.

5 Habits of Successful Franchisor Infographic
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1 - Maintain an Undying Devotion to the Brand

Understand what you want your brand to represent. Make a commitment to ensure the best possible customer experience – and deliver on it. A company’s ability to deliver what it promises is fundamental to its brand and reputation.

"A company’s ability to deliver what it promises is fundamental to its brand and reputation."-Golden Nugget-
  • Customers will find the truth about your brand and ultimately will tell you what your brand means.
  • Authenticity matters. Alignment matters.
  • The key is connecting franchisees and employees to the brand and the brand promise.
  • Effective communications and data will drive alignment and collaboration with the franchisee community.
Brand Promise
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2 - Balance Interests of Franchisor, Franchisee and System as a Whole

Achieving balance requires a working relationship built on trust, structure and compliance between franchisor and franchisee. The successful franchisor establishes a culture of voluntary compliance with system standards (the rules), but vigorously enforces compliance by errant franchisees.

"The successful franchisor establishes a culture of voluntary compliance with System Standards (The Rules), but vigorously enforces compliance by errant franchisees."-Golden Nugget-
  • The franchisor’s interest is to maximize revenues.
  • The franchisee’s interest is to maximize profits.
  • Mutual interest in being connected to the customer.
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3 - Stack the Deck With “Ace” Franchisees

Developing and implementing a process focused on recruiting and retaining high quality franchisees is essential to the success of the franchise system. Understand that franchise sales/recruiting is a separate business from your operational business.

"Understand that franchise sales/recruiting is a separate business from your operational business and then develop and follow a system that focuses on recruiting high quality franchisees."-Golden Nugget-
  • Choose recruiting path over the selling path. Be “over the top” responsive but do not chase prospects.
  • Prospects must be engaged. Focus on selecting franchise candidates who match the franchisor’s profile of a successful franchisee and are likely to achieve the candidates’ objectives.
  • Develop a detailed profile of an ideal candidate. Be willing to say “no,” as too many marginal candidates will create challenges for years in the future.
Stack the Deck
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4 - Obsess Over the Franchisee’s Bottom Line

Successful franchisees make successful franchisors. Franchisee buy-in and bottom line success benefit the franchise system as a whole.

"Everything the franchisor does must be driven by an obsession with the franchisee’s bottom line."-Golden Nugget-
  • The franchisor has established business success drivers (KPIs) and discusses those with franchisees on a regular basis.
  • KPIs must be specific to the industry, the brand, and the system.
  • Use benchmarks to monitor, measure and motivate franchisees (individually and within the system).
  • Have a financial training component in place for your franchisees.
Obsess Over the Bottom Line
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5 - Empower Franchisees

Create a culture of collaboration and shared decision-making. Support franchisees and give them the tools to develop and meet their goals within the system’s framework.

"Empowering franchisees doesn’t mean a franchisor has to give up its decision-making authority."-Golden Nugget-
  • Give franchisees something that will make them more successful and more effective.
  • Give them resources to find new ways on their own to grow their own businesses.
  • Create a culture of working hand-in-hand.
  • Use Thought Leadership Committees.


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