Franchisees, Which 3rd Are You?

If you are a franchisee this article is dedicated to you and hopefully to your future success.

Did you know that each location in your franchise system is ranked by your engagement and the level of revenue you generate? Yes, this may be surprising to you and perhaps controversial, but it's a fact! Essentially each location is categorized by their engagement, historical revenue, and their current year's annual growth or lack thereof. So are you in the top 3rd? The middle of the pack? or the bottom third?

Let's start from the top and work our way down, to dissect the nitty gritty of each category. The top performers, obviously pay more royalties, typically have more clout, and are usually asked to go through the validation process with potential new franchisees, this benefits the franchisor as well as the entire system. But it is an unspoken "I'll scratch your back if you'll scratch mine. So it makes sense that the franchisors are more inclined to offer their top performers opportunities to participate in pilot programs, offer matching funds, and be invited to participate on the Franchise Advisory Board and they typically get more media coverage as well.

The top performers, obviously pay more royalties, typically have more clout, and are usually asked to go through the validation process with potential new franchisees, this benefits the franchisor as well as the entire system. But it is an unspoken "I'll scratch your back if you'll scratch mine.

And for all of you in the middle of the pack who aspire to be a top performer, are you leaning into your franchisor for support? Are you asking for help? Is your monthly or quarterly revenue trending up or down? Are you opting in to participate in marketing campaigns or pilot programs? Are you picking the brains of the top performers in your system? If you are not doing these things, you must start doing them ASAP! That is if you want to scale your success and join the upper echelon of the system.

If you are in the bottom third, then you may be a newer franchisee who is just ramping up, or you have been in business a while and you are feeling very stuck and not sure how to move your business forward. Many franchisees in this category may be struggling with the decision to shut down, which sadly does happen, if this is you then you discuss this with your FBC as soon as possible, as the franchisor may be able to help you sell before it's too late.

Lastly, this advice is for all franchisees, the next time you meet with your Field Business Consultant, I encourage you to ask what category you're in. Find out how you compare to your peers who opened the same year as you. And always ask what are the top three things I should be focusing on now. What programs or opportunities are available? If you feel like you need additional support, ask if you can meet more frequently. Franchisors enjoy helping those who show initiative.

As a franchise marketing executive, my passion is to educate and empower franchises to become wildly successful. I'm available as a Fractional CMO and consulting - you can reach me at [email protected]