5 Key Strategies for Managing Franchisee Expectations

Franchising offers individuals the opportunity to own and operate their own businesses under an established brand, but success in this model requires effective management on the part of the franchisor. This includes managing the expectations of franchisees. From the initial recruitment phase to ongoing support, clear communication and realistic portrayals of the franchise experience are essential. 

Here are five key strategies for franchisors to manage franchisee expectations effectively, according to Leigh Smith, marketing director for children’s education franchise Brooklyn Robot Foundry. 

Start Talking About Support From the Very Beginning

From the moment potential franchisees express interest, it's crucial to outline the support they can expect from the franchisor in various areas such as setup, location selection, pricing strategies, marketing initiatives and customer service protocols. 

“This helps the candidate figure out not just what they'll get from the franchisor, but also the scope of work required by them and their team,” said Smith. 

By setting clear expectations early on, candidates can make informed decisions about their involvement and commitment to the franchise.

Provide Insight Into a "Day in the Life" of a Franchisee

During the recruitment process, sharing "Day in the Life" stories, schedules or visual aids that depict the typical responsibilities and routines of a franchisee can offer invaluable insight, said Smith. This transparency allows potential franchisees to envision their day-to-day operations, understand the demands of the role, and assess how it aligns with their desired work-life balance. 

Share Realistic Timelines and Growth Projections

Providing realistic timelines and growth projections is essential for managing franchisee expectations regarding the trajectory of their business.

“If the business requires a long ramp-up or has a lot of seasonality, let the franchisee know that from the start,” said Smith. “Same if it's likely to grow super quickly. This will allow them to plan financially and staff up appropriately.” 

Facilitate Conversations with Current Franchisees

Inviting potential franchisees to speak with current franchisees can offer invaluable firsthand insights into the realities of owning and operating a franchise, Smith explained. By connecting candidates with franchisees at different stages of business growth, franchisors provide a comprehensive perspective on the challenges, opportunities, and day-to-day operations of the franchise. 

These conversations allow potential franchisees to gain a deeper understanding of the business model, assess its suitability for their goals and preferences, and manage their expectations accordingly.

Maintain Ongoing Communication and Support

Effective communication and ongoing support are essential for managing franchisee expectations throughout their journey with the franchise. 

“Continue all these conversations regularly once franchisees have signed,” said Smith. “The more familiar they become with the stages of maturity, what other franchisees are experiencing, the cycles of the business and what support is available, the better they can understand the business as a whole and manage their own expectations.”

Fostering a culture of transparency and open dialogue helps franchisors empower franchisees to navigate challenges, capitalize on opportunities and effectively manage their expectations regarding business performance and support. Effective management of franchisee expectations not only creates positive relationships, but also contributes to the long-term success and sustainability of the franchise network.

To learn more, check out these related articles:

• Chapter 11: Training and Supporting Your Franchisees
• What Type of Support Should Franchises Offer Franchisees?
• What Kind of Support Should Franchisees Expect From Franchisors?