Franchise Goal Setting Part 2: How to Evaluate Internal Franchisee Growth

When companies grow, they invest a great deal of time and resources into recruiting new entrepreneurs into their system. While fresh talent and ideas are always valuable assets for growth, one of the easiest and most efficient ways to expand is internally, with partners who are already involved and know the ins and outs of the business.

“First and foremost, the quickest way for any franchise system to grow is via current franchisees,” explains Michael Mabry, president of Famous Toastery, a 25-plus-unit breakfast and brunch franchise. 

Mabry offered a few tips for how to grow a franchise internally.

It’s Not Just What They Offer You 

One thing that some brands fail to do is consider how a franchise system is a mutual relationship. The question some companies focus on during franchise development is “What can this investor offer us?” rather than considering what the brand can also do in return.

“It's not only about looking at what you need from particular franchisees in order for them to grow. The company also has to look at itself and ask, ‘What about this brand would make them want to reinvest?’” Mabry said. 

Invest in the Internal Environment

Make sure that the answer to the above question is clear and that the brand has an atmosphere that makes franchise owners excited about the possibility of opening additional locations or territories. Companies should review all aspects of operations and put themselves in an owner's shoes to see if any improvements can be made. 

“A brand needs to ask itself, ‘Do we have a model that makes sense? Do we have the appropriate training programs? Are we supporting franchisees in their local marketing efforts? If we've got franchisees that are succeeding and we want them to succeed even further, what do we have to do to support them?” Mabry said. 

Offer Continued, Proportional Support 

Sealing the deal and having a multi-unit deal is only half the battle. Growth is only growth if the franchisees are successful and profitable. Companies need to ensure that they offer ongoing support and increased aid to owners as they take on more responsibility and deal with the challenges of scaling. 

“We make sure to really work with those franchisees and teach them what it means to become a multi-unit owner,” Mabry said. “Operating one unit is much different than operating several because you can't be in two places at once. We make sure they have the tools and knowledge to handle higher-level operations.”