Growing a Franchise
Early communication, structured accountability and honest conversations can help franchisors address performance issues before they become larger systemwide problems.
Every franchise system will eventually face the same difficult question: How do I support struggling franchisees before problems spiral into something bigger? Whether the issue is operational, financial or personal, the way a franchisor responds can determine whether an owner recovers or creates larger problems across the system.
Franchisees usually don’t fall behind all at once. The warning signs often show up in missed check-ins, slower follow-through or a shift in how openly an owner communicates. Lauren Grant, senior franchise consultant for Franchise Connectors, said franchisors have a better chance of helping when they notice those changes early and respond with both structure and candor.
One of the biggest mistakes franchisors make is waiting too long to address warning signs. Grant says struggling franchisees often reveal themselves through subtle changes in communication, consistency and accountability long before the numbers fully collapse.
“Some franchisees are going to be strong communicators and raise their hand and say, ‘Hey, I need help.’ Others might avoid it and may not be proactive or communicative about the challenges they’re facing,” Grant said. “My recommendation is having weekly meetings, especially early in the process of starting the business. Those meetings should focus on accountability — both from the franchisor and the franchisee — around what they’re trying to accomplish weekly and monthly.”
That structure matters because it gives franchisors visibility into whether owners are actually following through on action steps, meeting benchmarks and staying engaged in the business. It also creates an opportunity to identify whether the issue is operational or something deeper.
“The key is identifying whether they’re meeting the benchmarks expected by the franchise system and by themselves,” Grant said. “Sometimes people are actually doing better than they think and are just being hard on themselves. Other times, they’re not taking the necessary action steps or there are other areas where they need additional direction and support.”
For franchisors, the first step is usually a regular check-in rhythm. When owners know they will be talking through goals, benchmarks and next steps each week, it becomes easier to catch problems early and harder for missed expectations to go unnoticed.
Once a franchisee begins falling behind, support has to become more practical and targeted, but that does not mean the franchisor steps in to solve the problem for them. Grant recommends starting with the root cause, then connecting franchisees with the right resources, whether that means coaching, peer mentorship or outside expertise.
“Support can mean connecting them with other franchisees who have successfully overcome similar challenges,” Grant said. “Shadowing other owners, along with working closely with a coach, can be very effective.”
That support also requires franchisors to understand whether the issue is within the owner’s control or whether outside circumstances are affecting performance. “The important thing is really listening to your owners and figuring out where the line falls,” Grant said. “Is the franchisee not doing what they’re supposed to be doing? Is their focus somewhere else because something is going on in their personal life? Or is it something the franchisor can truly help solve?”
That distinction can help franchisors avoid one of the hardest traps in franchise support: caring more about the business than the franchisee does.
“You can’t care more about their business than they care about their business, and you can’t do it for them,” Grant said. “You can help and support them. You can help them identify the holes and provide tools and resources, but at the end of the day, it’s still their business.”
That balance between support and accountability is one of the hardest parts of franchise leadership. Franchisors need to provide guidance without becoming operators of someone else’s location.
Sometimes, even strong support systems are not enough. Franchisees may lose interest, lack the bandwidth to continue or realize the business is no longer the right fit.
Grant says avoiding those conversations often creates bigger problems later.
“If you keep someone in the system simply because you haven’t had that difficult conversation, it can become a slow death situation,” Grant said. “It’s better to address it earlier, create a strategy and come up with a plan for how to move forward.”
In some situations, that may mean restructuring operations, bringing in another owner or facilitating a resale. The important thing is to handle the process honestly and proactively, rather than waiting for the situation to deteriorate further.
“You have to have honest, heart-to-heart conversations with them and make sure they have a clear picture of what success would require,” Grant said. “Then ask them directly whether they truly want to get to the other side of the challenge and whether they’re willing to do what it takes to get there.”
For franchise systems trying to figure out how to support struggling franchisees, those conversations are uncomfortable but necessary. Ignoring operational or behavioral problems rarely makes them disappear.
If you’re asking, “How do I support struggling franchisees?” these practical steps can help:
For more information on supporting franchisees, check out these related articles 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.
