
A bell curve of unit-level performance exists in every franchise system. Adding locations will of course boost system revenue, but there is also potential to grow simply by lifting the performance of existing units.

Sustainable franchise system growth is rooted in franchisee satisfaction. But how much franchisee profitability is “enough” to attract your ideal franchisee and grow your brand? What return on investment? What lifestyle? Should you reverse-engineer your model to ensure maximum franchisee satisfaction?

Franchise disclosure document update season is here again. Last year, COVID-19 impact data was still relatively fresh, and the pandemic’s trajectory was unclear. We now have two full years of data. Did franchises reinvent, demonstrate resilience and grow? Stall out or decline?

When I was a kid, coming home from school with any grade below an A was, well, bad. It was also pointless to tell my dad, “But I studied!” He would calmly reply (cue deep, Midwestern voice), “That may be true, but your grade signals you still haven’t mastered the material.”

Every new year, strategic planning and forecasting efforts suddenly seem more tangible. Bets are placed. Budgets, infrastructure investments and acquisition targets are finalized.

A well-orchestrated resale program is an important component of your growth strategy. Sound counterintuitive?

Market value and power accrue to platforms of all kinds, but especially to technology platforms. Scale raises competitive barriers, and attracts participants, capital and customers. A well-managed platform also gets smarter with each bit of collected data.

In franchising, there are three influential platform types, and higher enterprise value, scale economies and competitive advantages tend to accrue to platforms. Craft your brand growth strategy with this in mind.

Why do candidates want a franchise? What are their desired outcomes? “How” things get done will evolve over their 10-plus-year license agreement. Pressure test their assumptions and beliefs to ensure their “whys” will endure.
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