How Do I Create Franchise Peer Groups? — A Guide for Franchisors

Franchisee peer groups can help operators share ideas and solve common challenges, but only when they are structured with a clear purpose. For franchisors asking, “How do I create franchisee peer groups?” the answer often comes down to structure, accountability and assembling the right mix of participants.

“The way we approach peer groups starts with setting a clear purpose,” said Lily Collins-Sak, founder and CEO of The Daily Pilates. “Every group needs a clearly defined goal, whether that’s improving local marketing, increasing instructor content or driving retention.”

Peer groups can be one of the most effective ways for franchisees to share operational insights and solve common challenges. But without structure, accountability and the right mix of participants, those meetings can quickly lose focus and become unproductive. 

The difference between success and chaos often comes down to intentional planning.

Well-Structured Franchisee Peer Groups Ensure Productivity

The structure of the group is arguably the most critical piece. Structure helps establish clear goals and objectives, keeping meetings on task and productive for everyone involved. 

“We follow an agenda that typically includes a quick wins round to set a positive tone, a short metrics check on performance, then one or two focused deep-dive topics,” said Collins-Sak. “We also like to include a segment where we ask franchisees if they want to highlight something that went well from a previous challenge they encountered that they can share with the group. Overall, it’s about creating a space that still feels safe to share challenges, but is structured enough that every conversation leads to something actionable and rewarding.”

Franchisee peer groups are unlikely to be effective without clear goals established from the outset. That structure sets both franchisors and franchisees up for success.

The Strategy Behind Grouping Franchisees Together

With a clearly defined goal in place, the next step is deciding which franchisees should be grouped together. A peer group’s effectiveness often depends on the mix of participants. The right grouping can make conversations more productive, while the wrong one can quickly derail them. As a brand, you have to account for factors such as market size, business acumen, longevity as a franchisee, performance, personality and engagement. Ranking these criteria from most important to least important can help sort franchisees into the right groups.

“Intentional pairing is extremely important for making peer groups effective. If the mix is off, even a well-run session won’t land,” Collins-Sak said. “Overall, my goal is to create groups where the challenges feel relevant, the advice feels applicable and everyone feels comfortable contributing. When you get that mix right, the conversations naturally stay more productive and less like vent sessions.”

Determining the Right Level of Franchisor Involvement

The topic of creating franchise peer groups also raises an important issue for franchisors: How involved should corporate leadership actually be in peer groups?

According to Collins-Sak, the appropriate level of involvement often depends on the goal of the discussion. “For bigger agendas, the franchisor should lead to create structure, bring in relevant and quality information, highlight priorities and make sure conversations stay tied to business outcomes,” she said.

But there still needs to be room for franchisees to feel comfortable sharing their challenges and experiences. As the franchisor, you need to allow them to have the space to do this by knowing when to take a step back from the conversation.

“For smaller items like client or employee nuances, it can be helpful to guide them to another operator who you know has gone through something similar that you already helped them with,” Collins-Sak said.

Setting Expectations and Installing Systems of Success

Key performance indicators provide measurable evidence that a strategy is working in business, and it’s no different with franchisee peer groups. 

“We begin with purpose-driven KPIs like class utilization or content output so discussions stay on topic while also providing room for discussion on how leaders achieved these goals,” Collins-Sak said. “Having this visibility and shared wins can help spread best practices across the system.”

This helps create consistent, repeatable success throughout the entire franchise system to help grow locally and nationally.

Common Mistakes Made by Franchisors With Peer Groups

While there are a lot of ways for franchisee peer groups to be useful, there are also common mistakes franchisors make when it comes to answering the question, “How do I create franchise peer groups?” 

One mistake to avoid is treating these meetings as informal discussions. These are meant to be a tremendous use of time that provides real insight to help drive performance, and that can come down to the grouping of franchisees that was discussed earlier.

“It’s helpful to have operators in the pre-opening phase in separate groups from those that are open so newer operators don’t feel overwhelmed and experienced operators don’t disengage because the discussion isn’t relevant,” Collins-Sak said.

Additionally, franchisors and corporate team members have to find the balance between over- and under-involvement. Collins-Sak has found that over-involvement can lead to “dominating the conversation and franchisees stop sharing openly,” but being too hands-off means “the group can lose structure and accountability.”

Take the time to find the right pairings with the right balance to create a structured environment that is helpful to everyone.

Practical Takeaways for Franchisors

Franchise peer groups are more effective when they are focused on structure, accountability and credibility with measurable results.

Here are a few key takeaways for franchisors to get the most out of peer groups:

• Group franchisees based on similar factors such as market size, stage of business and personality.
• Create structured meetings with agendas that focus on solutions and wins.
• Find the balance between franchisor leadership and open franchisee collaboration.
• Develop measurable KPIs that can continually be evaluated and discussed.

When structured properly, franchisee peer groups can become far more than a discussion forum. They can serve as a powerful driver for delivering best practices, improving accountability and driving stronger performance for the entire brand.

For more information on franchise peer groups, check out these related articles on 1851 Franchise:

• Building a Network: How Franchisees Support and Learn From Each Other
• How Right at Home*’s Performance Groups Help Franchisees Reach Their Goals
• How Franchisee Networking Facilitates Systemwide Success