Growing a Franchise
When expanding your business, the most successful franchise revenue opportunities should capitalize on your established strengths rather than introducing unnecessary operational friction.
One of the toughest challenges consistently put in front of franchise brands is finding opportunities to increase revenue without adopting new programs, processes or operational demands that overwhelm franchisees. Today’s question of the day looks at how brands can add revenue streams for franchisees.
“The most successful additional revenue streams are the ones that fit with what the brand already does well,” said Anne Huntington Sharma, founder and CEO of Huntington Learning Center. “At Huntington, families already trust us for personalized academic support, so expanding into areas like test prep, summer learning and now microschools at participating centers makes sense for the business. We saw that as an opportunity to meet families where they are while also helping franchisees grow.”
This is just one example of how simplicity is critical. By strategically implementing new initiatives that have minimal operational complexity, they become easy to replicate consistently over time. Successful new revenue streams often come from building on what the brand already does best.
While every idea is always welcomed, not every idea should be introduced to the entire system. Before rolling out a new initiative, companies have to determine if it’s feasible from both a customer demand and sustainability perspective.
At Huntington, that begins by listening to real insight from families.
“In education, parents’ expectations and students’ learning needs are evolving quickly, so we spend a lot of time listening to what families are asking for and where they may be struggling,” Sharma said. “We also evaluate whether franchisees can realistically execute the program well across different markets. Consistency and quality matter tremendously in education, so scalability is always a major consideration before introducing anything systemwide.”
New revenue streams may look attractive on paper, but if there is no real demand or franchisees can’t deliver consistency, the long-term risks may outweigh the benefits.
Complementary services provide a great opportunity to deepen relationships with existing customers while providing additional revenue streams throughout the year. They can prove to be a real contributor to growing profitability.
“Seasonal and specialized programs have been strong growth opportunities for many of our centers,” Sharma said. “One of the advantages of education is that students’ needs change over time. That creates opportunities for centers to deepen relationships with families while continuing to deliver value.”
A consumer who seeks one service or product may seek an additional opportunity later down the line with a brand. By including new offerings, you create stronger relationships with customers while expanding revenue potential.
While this question of the day comes with tremendous opportunity, it also possesses operational challenges. One of the biggest challenges faced by franchisors is maintaining consistency and quality as you continue to grow.
“Anytime you introduce a new program or service, franchisees and staff need the training and support to execute it confidently and effectively,” Sharma said. “There’s also the reality that franchisees can experience initiative fatigue if too many new ideas are introduced too quickly. We try to be thoughtful about pacing and implementation so franchisees can focus on delivering strong outcomes for students and families.”
It’s important to not overextend your team and franchise system. Thoughtful pacing and implementation are crucial in aiding franchisees to execute new programs successfully.
“We want franchisees to feel prepared and supported rather than overwhelmed,” Sharma said.
This question of the day comes down to balance through strategic and disciplined innovation. As a franchisor, it’s your job to determine which revenue streams deserve an opportunity and which should be left behind.
“Franchisees need focus, clarity and operational support in order to succeed,” Sharma said. “We look for opportunities that genuinely strengthen the business long term and align with our mission of helping students succeed academically.”
It’s important to remain rooted in your brand’s goals, while utilizing the expertise of the team to best serve consumers.
“The goal should never be innovation simply for the sake of innovation,” Sharma said. “It should be about creating sustainable growth opportunities that help franchisees serve more students while maintaining a high-quality experience for families.”
While the development of new revenue streams can be exciting, they can also be stressful. It’s when they’re approached strategically though that brands reap the benefits. To successfully roll out new opportunities without creating operational disruptions:
Franchise brands that are the most successful understand that innovation and simplicity work hand in hand. When these new revenue streams are strategically selected and accompanied by support, they can drive meaningful growth while strengthening the core business that franchisees already operate.
For more information on additional franchise revenue streams, check out these related stories on 1851 Franchise:
Sign up for the 1851 Franchise newsletter to get our biggest stories before everyone else
By signing up, you agree to our user agreement (including class action waiver and arbitration provisions), and acknowledge our privacy policy.
