1851

As I write this, there are clear sentiment challenges in our country— the economy, Bitcoin, the stock market, politics… oh my. But what really caught my attention this month is franchisee sentiment—specifically, what they wish franchisors had done differently in the sales process.Why? Transparency.While sifting through marketing materials at the Multi-Unit Franchise Conference, I noticed a trend that I find potentially dangerous—how franchisors are leveraging Item 19.In my opinion, Item 19 should serve as a data provider, not a marketing tool. When it’s over-marketed, transparency diminishes, and so does the franchisee’s ability to gauge real success.If I were building an Item 19, I’d focus on benchmarks that help buyers set up their pro forma and strategy. Here’s what I’d include:✅ First-Year Sales – The most critical metric. Even if a buyer doesn’t hit the AUV, exceeding first-year projections can still signal success.✅ State-by-State AUV – Our insights from the ALEC-Laffer Report (<a href="https://1851franchise.com/top-10-states-for-franchise-growth-in-2024-insights-from-the-alec-laffer-report-2727705">read here</a>) show that Utah consistently ranks No. 1. That means the dollar stretches further there—important for franchisees calculating their ROI and franchisor fees.✅ Real Estate Costs – A comparison of lease rates vs. AUV to show how site selection impacts sales performance.✅ The "Crazies" – Benchmarks like value per seat in a restaurant or sales per hour to provide more actionable insights.<h2>What Franchisees Wish They Knew Before Signing</h2>I looked at 2025 franchisee sentiment—what buyers say about transparency, emotions, and regrets post-purchase. Here’s what stood out:<ul><li>Costs were higher than expected.</li><li>Construction costs.</li><li>Financial transparency concerns.</li><li>"I wish the franchisor told us to start with one location first. We didn’t open two due to COVID and real estate issues, and we lost our investment."</li><li>Extra costs, including marketing.</li><li>Had to learn real estate on the fly.</li><li>Unexpectedly long timeline to find a location.</li><li>The opening process took longer than anticipated.</li><li>Lack of a clear opening guide—a basic to-do list wasn’t enough.</li></ul><h2>Solutions to Improve Franchisee Success</h2>To address these concerns, franchisors must take a proactive approach:1️⃣ Financial Transparency – Provide a detailed roadmap of costs, including contingency planning. 2️⃣ Construction &amp; Real Estate Support – Offer preferred vendor pricing and a real estate training program. 3️⃣ Franchisee Onboarding Roadmap – Assign a launch mentor to each new franchisee. 4️⃣ Scaling Expectations – Encourage phased expansion, ensuring success at the first location before opening more. 5️⃣ Clearer Opening Process – Develop a step-by-step digital playbook with structured coaching calls.<h2>My Take on Transparency &amp; Franchise Growth</h2>I believe expectation setting is the fundamental difference between a successful, scaling franchisee (who maximizes royalties) and a franchisee who struggles, stalls, and quits.Honestly, expectation setting isn’t just critical in franchising—it applies to marriages, politics, business, and leadership.

1851 Franchise Coffee & Analytics design with photo of Nick Powills

The Transparency Factor in Franchise Sales – Setting Expectations for Success

1851 Franchise

Transparency in franchise sales can be the difference between a thriving, multi-unit operator and a frustrated franchisee who feels misled. Where are the hidden gaps?

Franchise Truth Bombs: What Buyers Wish They Knew Before Signing!

franchise-truth-bombs-what-buyers-wish-they-knew-before-signing

Sola Salons

Sola Salons Eyes Southern Connecticut for Strategic Franchise Expansion

sola-salons-eyes-southern-connecticut-for-strategic-franchise-expansion

Woodhouse Spas

Photo of exterior of Woodhouse Spa location with people walking around outside

Woodhouse Spas: A Recession-Resistant Franchise Opportunity With Unmatched Support

woodhouse-spas-recession-resistant-franchise-opportunity

Sylvan Learning

Pasadena Weekly: Sylvan Learning Pasadena Offers Free Tutoring for Students Impacted by Local Fires

sylvan-learning-pasadena-free-tutoring-fire-support

BIGGBY COFFEE

BIGGBY® COFFEE Names Erin Kaylor as President, Reinforcing People-First Vision

BIGGBY® COFFEE Names Erin Kaylor as President, Reinforcing People-First Vision and Growth-Focused Future

biggby-coffee-names-erin-kaylor-president

Workout Anytime

Design with Workout Anytime logo and photo of Larry Brayman

Workout Anytime Welcomes Larry Brayman as Chief Marketing Officer, Strengthening Leadership Team Amid Growth Surge

workout-anytime-larry-brayman-cmo

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

The Future of Franchising: Trends and Predictions for 2025 and Beyond

the-future-of-franchising-trends-and-predictions-for-2025-and-beyond

Restaurant Business: Crumbl Cools Its Expansion, Refocuses on Profitability

restaurant-business-crumbl-cools-its-expansion-refocuses-on-profitability

Franchise Face-Lifts: Why Major Restaurant Brands Are Betting Big on Remodels

franchise-face-lifts-why-major-restaurant-brands-are-betting-big-on-remodels

How New Tariffs Are Causing Price Hikes and Surcharges for U.S. Businesses and Franchises - 1851

Tariffs Prompt Price Hikes, Surcharges as Businesses (and Franchises) Brace for Rising Costs 

tariffs-prompt-price-hikes-surcharges

Pizza Hut - EYM Group - Chapter 11 Bankruptcy - 77 Pizza Hut Locations Sold - 1851 Franchise

77 Pizza Hut Locations Sold After Franchisee Bankruptcy Filing

pizza-hut-franchisee-bankruptcy-eym-group

Photo of powerlifter, wearing red singlet and white socks, preparing to deadlift

The 5 Business and Life Lessons I Learned from Powerlifting

the-5-business-and-life-lessons-i-learned-from-powerlifting

Consulting and Development | Big Sky Franchise Team — Emerging Leaders in Franchise Support

Big Sky Franchise Team: Expert Consulting for Scalable Growth

consulting-and-development-big-sky-franchise-team-emerging-leaders-in-franchise-support

franchise supplier award design with Locate AI logo and 1851 Franchise badge

Franchise Real Estate Services | Locate AI — Emerging Leaders in Franchise Support

locate-ai-emerging-leaders-in-franchise-support

Franchise Financial Reporting, Analytics and Business Intelligence | Qvinci

Franchise Financial Reporting, Analytics and Business Intelligence | Qvinci — Emerging Leaders in Franchise Support

franchise-financial-reporting-analytics-and-business-intelligence-qvinci-emerging-leaders-in-franchise-support

Franchisee spotlight image with Randy and Sandy Craft, Children's Lighthouse logo on blue background

The Crafts’ Successful Journey from New Parents to Children’s Lighthouse Franchisees

the-crafts-successful-journey-from-new-parents-to-childrens-lighthouse-franchisees

Franchise Success Stories: Inspiring Tales from the Front Lines

franchise-success-stories

Image of building outline hovering over person's hand

How To Choose the Right Franchise: A Step-by-Step Guide to Success

how-to-choose-the-right-franchise-step-by-step

Most Profitable Restaurant Franchises To Own in 2025 - 1851 Franchise

The Most Profitable Restaurant Franchises to Own in 2025

most-profitable-restaurant-franchises-to-own

Layoffs Surge to Pandemic-Era Highs, Opening Doors for Franchise Growth

layoffs-surge-to-pandemic-era-highs-opening-doors-for-franchise-growth

Franchisee spotlight image with photo of Robert Trujillo and UWRG logo on blue background

How Robert Trujillo Expanded His Construction Business With UWRG

how-robert-trujillo-expanded-his-construction-business-with-uwrg

Franchise Truth Bombs: What Buyers Wish They Knew Before Signing!

MORE STORIES LIKE THIS