So, What Do Franchisees Really Want? Building a Strong Franchise Network
- Barry Money
- Jun 23
- 6 min read
Not too long ago, a franchisee approached us to help them work through a dispute they were having with their franchisor. Interesting!
They wanted to know what a franchisor should be offering - in bare minimum terms - as support.
This was a strange challenge. Upon digging further, we discovered that the franchisees had written the operations manual, formed their own support group and established their own performance benchmarking systems.
It seemed like an inverse universe.
Franchising can be a great way to grow a business, but attracting and retaining top franchisees is key to building a strong and sustainable network. So, I thought I’d capture what I believe what franchisees want from their franchisors? Let's break it down.
1. A Strong Brand Presence
Franchisees want to be part of something bigger, a brand that stands out and has a proven track record of success. When they choose a franchise, the brand’s public image and reputation play a massive role. You don't have to be a huge business. But you do need to be credible. A strong, recognisable brand attracts quality franchisees who are eager to align themselves with a successful business. If your brand has the right appeal, you'll find that franchisees will be knocking on your door.
It’s interesting with this cohort of franchisees, they jumped on board because of a massive upswing in the market at the time but ever since they’ve been carrying the burden of the brand with them.
2. Honesty and Integrity
Trust is at the core of any good franchisor-franchisee relationship. Franchisees want to know that they’re in it together with the franchisor, working towards the same goal of growing the brand. Transparency, honesty, and integrity go a long way in building and maintaining this trust. When franchisees feel respected and valued, they are more likely to stay committed and motivated to succeed.
Sadly, in the case of this franchisor, they had not upheld their end of the bargain. As such franchisees were feeling discouraged. Several eventually exited the brand and went independent.
3. Strict Compliance Standards
Franchisees, particularly high performers, value consistency and high standards. It’s common for the best franchisees to complain when the franchisor doesn’t enforce operating standards strictly enough. If non-compliance is overlooked, it lowers the overall quality of the network and could even push top-performing franchisees away. Maintaining high standards is critical for preserving your brand’s reputation and encouraging success across the network.
4. Traffic-Building Advertising
No franchisee wants to struggle to find new customers. They want a steady stream of new faces in the door, and advertising plays a huge role in that. The most successful franchise networks regularly assess the effectiveness of their marketing campaigns and ensure they’re reaching their target audience. To make sure franchisees have a voice in the process, some networks form advertising committees made up of both franchise owners and head office executives. This helps make the marketing strategy even more effective.
I noticed with this franchisor that the only marketing they did was for new franchisees after the high performers had left the building!
5. Effective Management Information Systems
Top franchisees crave data. They want easy access to high-quality management information that helps them run their businesses more effectively. By leveraging detailed point-of-sale systems and other data-driven tools, franchisees can improve decision-making, boost efficiency, and ultimately increase profitability.
Luckily for this brand, the franchisees had chosen to share data among themselves to help lift their own performance.
6. Comparative Performance Analysis
Which leads us to comparative benchmarking!
High-performing franchisees tend to benchmark their performance against others in the network. Knowing where they stand relative to their peers can push them to perform better. As a franchisor, providing insights on the "good, bad, and ugly" within the network can motivate franchisees to improve and strive for the top position.
7. Above-Average Profit Potential
The average Australian franchisee makes around $80,000 in wages and profit annually. However, the best franchisees often earn more, significantly more. To attract top talent, franchisors should offer the potential for franchisees to make between $100,000 and $250,000 from a single unit. When you can offer the same income opportunities as medium-to-large corporate executives, you’ll attract high-performing franchisees who are ready to take their business to the next level.
I think the challenge with this franchisor was that he was disdainful of the fact that the best franchisees were earning significantly above what he believed they deserved. There's both an ego element to this and a misguided approach to franchisee relationships. Your job as the franchisor is to establish a system that makes your franchisees wildly profitable. I think he skipped that class.
8. Opportunities for Multiple Unit Ownership
The franchisor was initially happy to take the win of multi-franchise unit franchisees. The top performers had more than one unit within the brand.
Franchisees who are ambitious and have found success in their first unit often want more. They’re looking for opportunities to expand and own multiple units. High-profit franchise systems provide great incentives for this, and creating pathways for multi-unit ownership is a key motivator for top-performing franchisees in Australia. Supporting franchisees in this way allows them to grow while benefiting the brand overall.
9. Staff Training and Development
A key ingredient in any successful business is having well-trained, motivated staff. Franchisees expect franchisors to provide ongoing training for both them and their employees. By ensuring employees are knowledgeable and enthusiastic, franchisees can deliver better service to customers, improving the overall business performance. Franchise systems that provide comprehensive training support are more likely to see higher franchisee satisfaction and success.
10. Conferences and Networking
Conferences are more than just a way for franchisees to take a break, they’re an opportunity to gain new insights, connect with peers, and learn how to improve business performance. Franchisees expect conferences to offer valuable training, share the company’s vision, and provide networking opportunities. These events help franchisees stay aligned with the brand's direction and develop the skills needed to improve profitability.
11. Competent Franchisor Staff
Franchisees want to work with franchisor staff who are knowledgeable and experienced. As franchisees grow, their needs evolve, and they expect the franchisor's operations team to evolve with them. Having competent franchisor staff who can offer coaching, advice, and support is crucial to keeping franchisees engaged and motivated.
It seems that the person in charge of franchisee support and training had less business knowledge than the franchisees - and this is something we find often with mature brands. As franchisees become more adept at managing the systems and learn rapidly in the trenches, they crave support staff who can not only keep pace but also teach things the franchisees do not know. It's a tough gig, but the franchisor has to stay one step ahead of the franchisee network.
12. Ongoing Innovation
Franchise systems need to innovate constantly to stay competitive. Often, the best ideas for innovation come from the franchisees themselves. Think about how McDonald’s developed iconic products like the Big Mac or Filet-O-Fish, these innovations came from their franchisees. By fostering a culture of innovation and feedback, franchisors keep the network dynamic and forward-thinking, which franchisees absolutely appreciate.
13. Open Communication
Franchisees want to feel heard. They expect meaningful communication with the franchisor, not just the occasional newsletter. Franchise owners want to be able to share ideas, concerns, and feedback, and they want to feel valued for their contributions. When franchisees’ voices are stifled or delegated to junior staff, it can lead to frustration and disengagement.
Here Are A Few Tips for Enhancing Your Franchise Network
1. Foster Transparency: Open and honest communication builds trust and strengthens relationships.
2. Set Clear Standards: Consistently enforce high standards to maintain brand quality.
3. Engage in Ongoing Training: Provide franchisees and staff with the tools they need to succeed.
4. Leverage Data: Use management systems to help franchisees make informed decisions.
5. Encourage Innovation: Actively involve franchisees in shaping the future of the brand.
6. Support Multi-Unit Ownership: Offer pathways for growth for ambitious franchisees.
7. Measure Advertising Effectiveness: Keep track of your marketing efforts to ensure they drive results.
8. Host Productive Conferences: Use these events to train, network, and share your vision.
Reality Check: How to Attract and Retain Top Franchisees
Remember, it’s not just about offering a business opportunity, it’s about creating an environment where franchisees can thrive.
The key to a successful franchise network lies in truly understanding what franchisees want. By focusing on honesty, transparency, and fostering a culture of innovation, you can attract and retain top-performing franchisees. With strong communication, ongoing training, and evolving support for growth, you’ll build a successful, scalable franchise network that benefits both you and your franchisees.
Frequently Asked Questions
What do franchisees actually want from a franchisor?
Predictability, support and a genuinely repeatable system, not just a brand name to trade under.
What triggers disputes between franchisors and franchisees?
Misaligned expectations about support, profitability and what the franchise agreement actually delivers in practice.
How can franchisors reduce dispute risk?
Set realistic expectations upfront and deliver consistent operational support, rather than overselling the opportunity during recruitment.
Speak With a Franchise System Architect
If you are exploring franchising and want to determine whether your business may be ready for franchising, understanding the development process is an important first step.
At Franchising Made Easy®, we help founders design franchise systems that are structurally integrated and capable of sustainable growth.
If you would like to explore how franchising could work for your business, consider speaking with an experienced Franchise System Architect.
