The Value of Validation: Why Existing Franchisees are Your Greatest Growth Asset

Every franchise’s business model is focused on growth. Development is inherent to the very nature of the industry, and a brand’s success is judged by how quickly the franchise can grow in units and revenue.

Though franchise leaders vary in their strategies to achieve that growth, there is one principle that’s universally applicable to all brands — engaging with existing franchisees helps develop the brand.

Many franchisees are often gifted with an entrepreneurial spirit. Michael & Staci Douglas, for instance, were looking to supplement their property services business when they began franchising with Green Home Solutions*. With their intent to grow their business and develop with the franchise, the 5-unit owners were ideal candidates for the brand.

“The main reason we chose Green Home Solutions was because of how perfectly its products and services work with our other business,” said Staci. “If we have a customer who utilizes our property services, we can now offer to help them tap into the power of environmentally conscious solutions for common household problems. From mold and odor elimination to duct cleaning and encapsulation, Green Home Solutions is providing safe, eco-friendly, affordable and effective alternatives to traditional methods.”

In these situations, fostering growth with existing franchisees is simple; these business-minded franchisees are likely already on the same wavelength and are ready to expand. For many other franchisees, however, their decision to join a franchise was not necessarily predicated upon growth. 

For most franchisees the dream of owning their own business in a market they care about is enough to buy into the right model, sure. However, the success of that model and an open relationship with corporate often encourages them to pursue a larger reach.

Amazing Lash Studio Chief Development Officer, Matt Stanton, says the majority of the beauty brand’s franchisees own multiple units, and credits this to the brand’s many resources. “While there is some risk that comes with spreading attention across multiple studios, the Amazing Lash Studio team does everything it can to ensure that owners have all the tools and support they need to provide the highest-quality eyelash extension service in their territory,” Stanton says.

Corporate managers know the benefit of maintaining solid relationships with their franchisees. Michael Wagner, president of the pool-service franchise Pool Scouts*, credits early-adapters to driving overall revenue growth and believes in nurturing those relationships with corporate resources.

“Being an early franchisee has some benefits and challenges,” Wagener recently told 1851. “Usually the cost to get in is significantly low, but there’s more risk and there’s always some growing pains. If the model is tight and you help those early franchisees find success, then fast growth becomes a much more viable option.”

According to Franchise Development Director John Mike Heroman of pet-care franchise Hounds Town USA, aligning with your franchisees on goal orientation is incredibly important to growing through them and with them.

“You have to be honest to the core about what your brand is, which markets it can work in, and who your franchisees are,” he said. “You have to be brutally honest with yourself about what your model is, what your brand is and what kind of growth you can expect, then you plan accordingly.”

For brands looking to expand, engaging with your franchisees is key. Not only can their success demonstrate the worth of your brand to future franchisees, but with the right environment and aligned priorities, their growth will become inevitable.