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Setting the right kinds of expectations at the start of the franchise development process is a crucial step, but taking it a step further to ensure the expectations themselves are realistic is what will truly set a development team up for success. Clear communication about growth goals, financial requirements and operational realities helps align both parties’ expectations and prevents misunderstandings that could lead to frustration or disappointment later on.1851 Franchise spoke with&nbsp;<a href="https://www.linkedin.com/in/kelli-schroeder-mba-cfe-b7264121/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=setting-realistic-expectations-in-franchise-development-tips-for-sustainable-growth-2727863" target="_blank" rel="nofollow">Kelli Schroeder</a>, vice president of franchise development at&nbsp;<a href="http://thresholdbrands.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=setting-realistic-expectations-in-franchise-development-tips-for-sustainable-growth-2727863" target="_blank" rel="nofollow">Threshold Brands</a>, about her approach to setting achievable growth goals for her teams and the steps she encourages to ensure prospective owners have a realistic view of what ownership might mean for them.<h3>Aligning Development Goals with Brand Growth Potential</h3>“Setting realistic growth goals for the development team is all about understanding your brand’s strengths and its limitations,” Schroeder said. “It’s about being clear on the resources needed to support that growth so each new unit is set up for success, not just for the short term but for longevity.”Rapid expansion can be tempting, but Schroeder advises against it unless the brand is fully prepared to support each new franchisee. She emphasizes that a sustainable growth rate ensures that franchisees receive adequate attention, training and resources, which ultimately benefits the entire franchise system.When setting realistic expectations, take the time to look inwards and truly evaluate which goals will be attainable for the team in terms of long-term support, as well as what might be realistic to expect in terms of interest from prospective owners.<h3>Transparency with Prospective Franchisees</h3>After setting realistic expectations for development teams, it’s important to encourage them to set similarly realistic expectations for prospects as they guide them through the process. Schroeder explains that the financial expectations of business ownership are one of the most important things to clarify early.“We want to be clear about the financial aspect from day one,” she said. “That means being transparent about initial costs, the potential revenue, but also the realistic timeline for seeing a return on investment. This helps franchisees enter with their eyes wide open, prepared for the ups and downs of the financial journey.”Development teams should refer prospects to the Franchise Disclosure Document to review data on the financial performance of current locations to help potential owners understand expected benchmarks. This transparency helps franchisees plan for the investment needed and the time required to reach profitability, setting them up for a more confident and informed start.This is just part of setting realistic expectations for prospective owners, though. It’s common for franchise candidates to enter the process with a vision of ownership that may not align with reality, especially if this is their first franchise investment.“For prospective franchisees, it’s crucial that we’re up-front about what it really means to be an owner with our brand,” Schroeder said. “They need to know about the hard work involved, the hours they may need to put in and the support we offer but also the limitations of that support.”In many cases, these clarifications should include information about how flexible the business is, what kinds of work the franchisee should expect to do when they’re “at work,” and even a frank conversation about how hands-on the business will require them to be.Providing a clear picture of what day-to-day responsibilities look like helps franchisees make an informed decision. By offering a realistic portrayal of franchise ownership, development teams can attract candidates who are both prepared and aligned with the brand’s expectations.Setting realistic expectations during the franchise development process is about balancing ambition with clarity for both development teams and prospective owners. Development teams should focus on setting attainable growth goals and clearly communicating what franchise ownership will entail, from financial requirements to operational tasks, and prospective owners should be receptive to these expectations.This transparency not only attracts the right candidates but also strengthens the relationship between franchisors and franchisees, setting up each new franchisee for long-term success.Every great franchisee had help buying a franchise. Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="http://www.1851growthclub.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=setting-realistic-expectations-in-franchise-development-tips-for-sustainable-growth-2727863" target="_blank" rel="nofollow">www.1851growthclub.com</a> and start your journey.

Setting Realistic Expectations in Franchise Development: Tips for Sustainable Growth

Setting Realistic Expectations in Franchise Development

1851 Franchise

Clear, realistic goals create a pathway for long-term franchise success. Here’s what you need to know to align your goals, team and prospects for a successful growth year.

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Setting Realistic Expectations in Franchise Development: Tips for Sustainable Growth

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