How Franchisor Controls Shape the Way Local Owners Operate Their Businesses

Building a business from the ground up is an overwhelming process whether you’re a new entrepreneur or experienced business owner. There’s a seemingly endless list of tasks that come with being successful, from establishing—and maintaining—positive customer relationships to ensuring that you have the right tools and resources in place for your staff members and employees. That’s why aspiring owners often turn to franchise concepts for help. By working together with a franchisor, some of the responsibilities associated with running a business are shifted to a company’s corporate team.

While there are thousands of franchise concepts out there that entrepreneurs can be a part of, the controls that come with being a franchisor often stay constant from brand to brand. And it’s critical for franchisees to understand the difference between their role as a franchisee and that of the franchisor before signing an agreement on the dotted line.

“Explaining our franchisor controls is something that I consider to be one of my top priorities as a CEO. And it all comes down to protecting the brand,” said Bob Lewis, founder and CEO of Closet & Storage Concepts. “Everything that franchisees gain access to by joining a proven system—from logos and product offerings to service standards and operating policies—has the potential to make or break a brand’s identity. That’s why it’s our responsibility to ensure that those brand elements are protected. Because at the end of the day, if there’s one franchisee who isn’t following a brand’s standards and business model, it has the potential to disrupt the entire system and harm the equity investment of every local owner.”

To put it simply, franchisors bring the concept and systems to the table that come with being an established brand. By becoming a franchisee, entrepreneurs are able to tap into legal trademarks and logos in addition to standard operating procedures and training programs that they otherwise wouldn’t have access to.

According to Chuck Runyon, co-founder and CEO of Anytime Fitness, ensuring that those controls are designed to position franchisees for long-term success is what continues to drive brands forward.

“Our business ultimately comes down to people. And investing in them starts here at the corporate office—it’s up to us to double down and increase our investments to ensure that our employees are growing both personally and professionally,” said Runyon. “Franchising offers entrepreneurs a unique solution to that problem—people get to control their own destinies while having the backing of an established brand.”

At the end of the day, franchisors have control of their established brands on a system-wide level. While franchisees are responsible for managing the day-to-day operations of the business in their own local communities, corporate teams are there to ensure that their values and standards are being upheld across the board. That’s why it’s so important for franchisees to partner with brands that they align with, both personally and professionally.

“It’s really important for everyone involved in franchising—both on the franchisee and franchisor levels—not to chase the short money. Stay focused on your long-term goals. That means making sure that every franchisee you bring on board shares your philosophy and has the capability to be successful,” said Hansel Lynn, co-founder of theCoderSchool. “I always like to say that I’m not trying to sell a franchise. I’m looking for a partner to help expand.”

By managing and staying on top of their franchisor controls, brands are then able to expand and reach their full potential as concepts on a regional, national and even international level. But in order to make long-term growth possible and sustainable, brands need to ensure that their franchisees are following the systems and procedures that are in place. That’s why franchisors ensure that their development goals and overall controls are made known across their entire system.

“I’ve found that it has always been more beneficial to focus on the end results and what you’re trying to achieve. If the goal of the business is the same at every level, then perception is a great benchmark to look at afterwards and see how you did,” said Tariq Farid, founder and CEO of Edible Arrangements. “I like to take a step back and make sure we’re hitting goals and focusing on our customers and franchisees before thinking about how we’re being perceived.”

Without maintain control of its core brand, franchisors wouldn’t be positioned to help their local owners succeed as entrepreneurs. But even though franchise companies have a hand in the overall positioning and growth of their concepts, it’s ultimately up to franchisees to move their own businesses forward on the unit level.

“In a perfect world, we’re here to act as coaches, advisors and consultants. We’re not going to execute the day-to-day operations behind the business,” said Lewis. “The analogy that I use is that of a hockey coach. As the head coach of a team, it’s your responsibility to teach the players the system and how their team runs. But it’s not your responsibility to go out on the ice when you’re down by a goal in the third period and start skating. That’s how brands operate as franchisors.”