How Do I Support Franchise Operators During Downturns?

Economic downturns are inevitable, but the strongest franchise systems aren't defined by whether they experience difficult periods. They're defined by how they respond to them. So, how do I support franchise operators during downturns? 

According to Gloria Burbano, chief strategy officer at Curious Jane, the answer isn't to pull back. It's to prepare, communicate clearly and continue investing in franchisees even when conditions become more challenging.

Why Supporting Franchise Operators During Downturns Starts Before a Crisis

Many franchisors wait until franchisees are already struggling before offering additional resources. Burbano believes that's one of the biggest mistakes a system can make.

"The brands that come out of downturns strongest are the ones that stay invested when everything in them is saying pull back," Burbano said. “That means maintaining marketing support at the brand level, staying close to your operators, and making sure franchisees have real tools to work with, not just encouragement.”

Preparation matters because downturns rarely happen overnight. Franchise systems that already have support plans, communication channels and intervention strategies in place can respond much faster than brands scrambling to create solutions in the middle of a crisis.

"Have a plan for how you're going to support struggling operators before they're struggling," she said. "Most systems don't have that plan and by the time they're looking at the numbers, it's already late."

Why Marketing Is One of the Last Things Franchisors Should Cut

One of the most common responses during economic uncertainty is reducing marketing budgets. While it may seem like an easy place to save money, Burbano argues that doing so often creates much larger problems down the road.

"One of the most counterintuitive but proven things a franchisor can do during a downturn is increase or hold steady on brand-level marketing spend," Burbano said. “When you go dark, you don't just lose visibility, you lose ground that is incredibly expensive and time consuming to rebuild. The brands that stay consistent are the ones that come out ahead. The ones that cut marketing are playing catch-up for years.”

For franchisors asking, "How do I support franchise operators during downturns?" maintaining marketing support should remain one of the highest priorities.

Clear Communication Builds Confidence During Uncertain Times

Financial support and marketing resources matter, but communication often determines whether franchisees trust leadership during challenging periods. "Honestly, most franchisors over-communicate noise and under-communicate strategy during a crisis," Burbano said. “There's a lot of 'we're in this together' messaging but franchisees are sitting there asking what are we actually doing about it. That gap is where trust erodes.”

Instead, franchisors should communicate frequently, honestly and with specific action plans whenever possible. "The most effective communication during a downturn is specific, actionable, and honest about what the brand knows and doesn't know yet," she said. “Franchisees can handle uncertainty. What they can't handle is feeling like leadership doesn't have a plan or isn't being straight with them. If you don't have an answer yet, say that, but tell them when you will. Cadence and honesty matter more than polished messaging when things get hard.”

By the time declining revenue appears in financial reports, struggling franchisees may already be facing significant challenges. That's why early intervention is critical.

"From a marketing standpoint, one of the earliest signals we see is when franchisees start going dark on local marketing," Burbano said. “When an operator stops investing locally, stops engaging with the tools and resources available to them, that's usually a sign something is wrong at the unit level before it shows up anywhere else.”

The strongest franchise systems develop clear benchmarks that identify operators needing additional support before financial problems become severe.

"The brands that handle this well maintain a running view of operator health and have defined thresholds for when to step in," Burbano said. “Early intervention, whether that's additional support, a direct conversation or an adjusted marketing plan, is almost always more effective than waiting for a franchisee to come to you.”

COVID remains the clearest example of how preparation influences franchise performance during disruption. “The lesson was pretty simple: the brands that made it through and grew coming out of it were the ones that stayed nimble and found ways to keep serving their customers even when everything changed," Burbano said.

She points to home services as one example of a category that responded quickly to changing consumer behavior.

"The broader lesson is that a downturn rewards preparation and punishes rigidity," Burbano said. "The franchisors who had flexible systems, clear communication structures, and marketing infrastructure already in place were able to move fast. The ones building the plane while flying it struggled."

Practical Takeaways for Franchisors

For franchisors wondering, "How do I support franchise operators during downturns?" a few priorities consistently stand out:

• Develop a downturn playbook before economic conditions worsen, including clear intervention plans, communication schedules and support resources for struggling operators.
• Continue investing in brand marketing whenever possible while monitoring behavioral indicators, such as declining local marketing activity, to identify franchisees who may need additional help.
• Communicate openly and consistently with franchisees, sharing both what leadership knows and what it's still working to solve while remaining transparent throughout the process.

For more insights on franchise leadership and franchise operations, check out these related articles on 1851 Franchise:

• How Do I Support Struggling Franchisees While Driving Accountability?
• 3 Advantages of Economic Downturns for Franchise Owners
• How Franchisors Are Supporting Franchisees During These Difficult Times