7 Keys to Running a Successful Franchise
Mar 18, 2025
If you're reading this, you are either a franchisee, an aspiring franchisee, or a small business owner looking for ways to build a stronger and successful business.
Having worked with many franchisees all over the world, I can tell you that the difference between those who thrive and those who struggle comes down to 7 essential aspects.
If you're missing even one of them, your business might survive. However, it won't thrive or reach its full potential.
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Key #1: Become an Expert in your Franchise
You must be committed to fully understand your brand standards, procedures, and how it works.
I have met many franchisees who invest thousands of dollars but never read the operations manual, from cover to cover. Trust me, I have done that in the franchises that I have led. And sometimes franchises don't attend the company training or the meetings. And then they wonder why they're not succeeding…
- The most successful franchisees make it their mission to know the brand inside and out, and they attend every training.
They also ask tons of questions and study the playbook because that’s why you invested in a franchise: because the brand already figured it out and proved that it can be replicated. So, all you need to do is implement it.
Key #2: Execute the Brand with a High Level of Excellence
Why do you think customers choose a franchise over an independent business? Most of the time, that is because they expect consistency. They know what they're going to get, or they assume they know what they're going to get when they walk into a franchise unit.
They want their favorite sandwich or coffee exactly the way they had it last week. They want the gym experience, the car wash, or their massage exactly the way that they experienced it before.
- If you're not following the brand standards exactly the way they designed them, you're going to lose customers because they're going to be disappointed.
Excellence isn't just about being perfect. It's about making sure that your team understands that the little things actually matter. For example, the way you greet your customers, the speed of service, the cleanliness of your store, the quality of the product or service you deliver. Those are the things that build trust.
And if your customers trust you, you’ll have loyal customers who will not only keep coming back but refer others to you.
Keep learning: Achieving Consistency in Multi-Unit Enterprise
Key #3: Hire the Best People
The third key to running a successful franchise business is to attract the right people and to do it consistently.
It’s easier said than done. In fact, hiring great people is one of the biggest challenges for franchisees.I see it all the time. You're busy running your business, and suddenly you need a new employee, so you hire whoever walks into the door as quickly as possible so you can feel that need.
- But here's the truth: desperate hiring leads to higher turnover. And higher turnover kills your profit because turnover is the biggest hidden expense in your business.
Instead of this desperate thing, you must create a system for hiring new talent so that you know what you're looking for.
Use structured interviews, hire for attitude, and train for skills because one A-player is worth three average employees any day of the week. And when you have the right people in place, everything from customer service to sales and operations gets much easier.
If you missed it: How to Build a Dream Team for Your Franchise
Key #4: Train your Team
The fourth key to running a successful franchise is to train your team in all your systems and processes. You must also ensure that they execute them with a high level of excellence, exactly the way they were designed.
I remember doing unit visits when I was in operations, and my job was to actually observe the operations to make sure that the standards that we taught them that were developed by the brand and by our management systems were being executed properly day-to-day in the organization. When was the last time you did that?
Training is not just a one-and-done thing. It is actually an ongoing coaching process that you have to have in your organization.
Your team needs it. They need to refresh their knowledge and have accountability because when your team knows exactly what to do, they will feel more confident. And confident employees create happy customers.
Key #5: Identify & Promote Leaders
The fifth key element of a franchise's success is to promote excellent managers and leaders in your organization.
You cannot run a franchise all by yourself; you need great managers who can take ownership of daily operations, solve problems, and lead the team. That is what gives you the freedom to do other things.
- But great managers don't just appear; you have to develop them. Identify your best employees, invest in their growth, and teach them the leadership skills that they need to be successful.
When you have strong managers in place, you can step out of day-to-day operations and focus on growth and strategic thinking or maybe go on vacation.
Key #6: Own your Sales
The sixth key to running a successful franchise is to own your sales with local store marketing. A common mistake that a lot of franchises commit is rely 100% on the corporate marketing plan.
- Yes, the brand does marketing, but that does not mean that you should sit back and wait for them to do all the work. They won’t come to your neighborhood and ask your neighbors to buy from you.
The top-performing franchises own their sales. They connect with the community. They partner with schools. They connect with local businesses, sponsor events, and build relationships in the community.
Ask yourself what your local marketing plan is. If you don't have one, you might be leaving a lot of money on the table!
Key #7: Master your Financial Statements
The seventh essential element that you must have to be successful with your franchise is to master your financial statements so that you can impact your business results.
- You might not be a numbers person, but if you don't understand your financials, you're running your business blindfolded.
You need to know how to read your profit and loss statement, try to keep metrics, and make smart financial decisions.
This is a must for any business owner because here's a reality: revenue is great, but profit is what keeps the business going.
The franchisees who truly succeed aren't just great operators; they are great financial managers who know their costs and margins and how to maximize profitability.
This is something that you, as a franchisee, must do to run a successful franchise business.
Don’t miss: 6 Actions Every Entrepreneur Should Implement to Succeed
How many of these seven things do you feel 100% confident about? Remember that if you're missing one or more, you don't have to figure it out on your own.
We created the COMMAND program, designed to help franchisees like you implement your business management systems, processes, and procedures so that you can bring your business to the next level, especially if you're going to be growing into a multi-unit organization.
Look at more details on this coaching program here.
Reflections:
- How much consistency is your team achieving?
- Do you have a proper hiring process your leaders can replicate?
- What are you doing to own your sales?
- How much do you understand your business numbers and financial statements?
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