Growing a Franchise
The strongest brands continually refine their operating model by listening to franchisees, responding to market shifts and removing friction that slows growth.
A successful franchise prototype is never static. As customer expectations change, technology advances and operating costs shift, franchisors need to continually evaluate whether their model still supports franchisee success. Knowing how to evolve franchise prototypes means looking beyond aesthetics and focusing on the systems, processes and investments that help franchisees grow profitably over the long term.
"You can't wait around for signals to tell you it's time to evolve," said Tony Saxby, founder and CEO of W.O.L.F. Gyms. "You need to be honest with yourself about where the business is headed and have the future always in the forefront of your mind. This industry, every industry, really is fluid. It's always moving."
A prototype that worked five years ago may not be the best fit today. Demographics change, new technology becomes available and franchisees often find better ways to operate.
“That's why we're constantly polling our franchise partners, hitting emerging and established franchise conferences, and really listening to what our members are asking for,” Saxby said. “We're also leaning into AI to take some of the day-to-day weight off our franchisees' shoulders so they've got the bandwidth to focus on what's next for growth in fitness and health.”
When considering how to evolve franchise prototypes, technology should improve operations without adding unnecessary complexity.
Vendor partnerships play an important role in franchise operations, but Saxby believes brands should be willing to rethink those relationships when they no longer create value. A willingness to adapt helps protect franchisees from disruptions while creating new opportunities to improve margins and operational consistency.
"We go to the mat trying to broker the best deals with our vendors and pass those savings straight to our Pack whenever applicable," he said. "But when that relationship hits friction, we don't sit around waiting on it. We go build that vertical ourselves."
Franchise prototypes should evolve based on real-world experience from operators in the field. For example, W.O.L.F. Gyms schedules systemwide ownership calls every two weeks, while its Franchise Success team conducts weekly check-ins.
“They're in there identifying what's working and what's not, helping guide each partner's success plan, marketing direction, lead-gen pipeline improvements, all of it,” Saxby said. “And on any call with corporate, there's always an open lane to bring a new idea to the table.”
Those conversations give corporate a better picture of what's happening across the system. When the same issues or ideas come up from multiple franchisees, it's easier to spot what needs to change.
Every investment should have a purpose. Instead of prioritizing appearance, W.O.L.F. Gyms puts more of its budget into amenities that members value.
“We're intentional about where the money goes,” Saxby said. “We're putting it into the stuff that actually matches our industrial-but-welcoming vibe: elevated locker rooms, cold plunge, infrared and red light therapy saunas and by the end of summer, in-space medical TRT and peptide facilities.”
Every franchise system has parts that work well and parts that can work better. Taking the time to make those adjustments can improve the experience for both franchisees and customers.
"Go back and look at your prototype with fresh eyes," Saxby said. "Find the friction — the points where a franchisee hesitates, where the path gets harder than it needs to be — and fix it or cut it. Then double down on the paths that flow, because those are the ones that drive real success, not just for the unit but for the members walking through the door every day.”
The goal isn't to keep changing for the sake of change. It's to keep building a business that's easier for franchisees to run and better for customers to experience.
Want to learn more about how 1851 helps franchisors grow their franchises with confidence? Visit www.1851growthclub.com and see what we can do for you.
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.
