Growing a Franchise
Setting realistic expectations during franchise development fosters alignment, prevents misunderstandings and establishes a foundation for long-term success for both franchisors and franchisees.
Effective franchise development is built on clear, realistic expectations. Setting appropriate expectations with both internal team members and franchise candidates ensures alignment, avoids misunderstandings, and creates a foundation for long-term success.
Franchise development teams must clearly communicate growth goals, financial requirements and operational realities to potential franchisees. Erica Tarnowski, franchise development director at Aroma Joe’s Coffee, emphasizes the critical nature of expectation-setting: “There are so many implications of an aggressive franchise sales strategy that go far beyond just closing a deal. Supply chain, logistics, training — there are so many pieces that come with signing a deal in a new market. We need the team in place to handle that effectively. If we can’t support franchisees properly, it backfires. Nobody is happy in that scenario.”
This transparency helps both franchisors and franchisees enter partnerships with eyes wide open, reducing potential disappointment and frustration.
Pete Trexler, director of franchise development at Empower Brands, warns against overselling franchise concepts: “Overselling territory or the concept itself is a common mistake. You need revenue to fund your support structure, but there’s a delicate balance. You need to realistically assess what can actually be penetrated based on your capital and resources.”
Trexler highlights another common challenge: aligning marketing efforts with actual support capabilities. “If your marketing generates too many leads without enough support to nurture them, you're wasting resources,” he said. “You must balance what you can support with what you can sell. Protect franchisees from getting in over their heads — it’s essential for mutual success.”
Transparency is vital in setting realistic expectations. A.J. Titus, president of Signarama, reinforces this point: “Transparency doesn’t mean overwhelming franchisees with every detail. Connecting prospective franchisees with current owners allows them to hear directly from those in the business, providing authentic insights into day-to-day operations.”
Titus also cautions against expecting sales teams to anticipate every operational challenge: “Operations teams sometimes believe every future issue can be solved during the sales process, but this isn’t realistic. Sales teams must set truthful, realistic expectations, recognizing they can’t account for every scenario.”
According to Tarnowski, aggressive growth strategies must align with realistic capabilities. “Growing a sustainable brand and footprint is slow and steady, rather than fast and aggressive,” she said. “Signing agreements without having essential building blocks in place creates operational chaos. It’s about finding the right people at the right time and in the right places.”
Trexler underscores the necessity of rigorous testing and adaptability: “Understand and thoroughly test your business model. Be prepared to pivot quickly. Surprises will happen, and flexibility in responding is crucial.”
Tracking appropriate metrics is critical for understanding and refining franchise sales strategies. Titus emphasizes clear tracking methods: “Use your sales funnel. Leads in, contacts made, meetings had, discovery day tours and closed deals — know your numbers and ensure your sales team clearly understands your expectations.”
Trexler agrees, highlighting cash flow awareness: “Understand the cash flow required to operate effectively. Confidently determine fixed expenses and the level of support necessary to ensure the model sold is effective.”
Realistic expectation-setting also includes educating franchisee candidates about their future responsibilities. “Setting expectations means being honest and open with prospective franchisees” Tarnowski said. “We don’t want franchisees to enter with assumptions of support or business structures that don’t align with reality.”
Development teams should clearly communicate the operational demands and financial expectations. Franchise Disclosure Documents (FDD), operational manuals and direct interactions with current franchisees can offer invaluable transparency. “We connect prospects with current owners directly,” Titus said. “It’s the most transparent way to share information.”
Ultimately, setting realistic expectations is about balancing ambition with transparency, clarity and practical execution. Tarnowski’s philosophy captures the essence of sustainable franchise growth: “Growing sustainably means carefully managing supply chains, logistics and team readiness. This slow and steady approach ensures each franchisee receives the support they need.”
By clearly defining realistic expectations, franchisors attract well-informed franchisees who align with the brand’s vision, ensuring long-term success and mutual satisfaction.
Growing and selling franchises is difficult. No great franchise did it alone. 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.
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