Empowering Franchisee Success: Franchisor Strategies for Supporting Franchisees

Strategies for Successful Franchise Ownership

Franchising has become a popular business model that allows aspiring entrepreneurs to operate their businesses under an established brand with proven systems and support. Franchise businesses contribute about $674 billion to the U.S. economy.[1]

For franchisors and franchisees to thrive within this dynamic landscape, staying current with industry trends, consumer behavior, and technology advancements is important. Franchisors should provide ongoing support and training to their franchisees while maintaining open communication channels.

On the other hand, franchisees should proactively manage their business, continuously seeking ways to improve operations and customer experience. Both parties should prioritize ethical and sustainable practices to ensure the franchise’s long-term success.

Offering a robust training program is essential to equip franchisees with the knowledge and skills necessary to run a successful business.

The training should cover various aspects of operations, including product knowledge, customer service standards, marketing strategies, financial management, and adherence to brand standards. Providing ongoing operational support and guidance is crucial for franchisees to navigate challenges and optimize their business operations.

This support can come in the form of regular check-ins, business consultations, access to a dedicated support team, and resources to address operational issues efficiently.

Franchisees: Empowering Success through Support

Franchisors must provide comprehensive support to franchisees to represent the brand and drive business growth. This can be achieved by implementing various strategies, including training and onboarding programs, operational support, marketing and sales assistance, quality control and compliance, financial guidance, and open communication.

Establishing a Franchisee Advisory Council with representatives from the franchisee community can provide a platform for franchisees to voice their opinions and share insights.

Ongoing training and development opportunities, performance monitoring systems, and encouraging innovation and adaptation among franchisees can drive business growth and differentiation in the market.

Business operations must support franchisees in understanding and complying with legal and regulatory requirements. Offering crisis management support helps franchisees navigate unforeseen challenges and mitigate risks to their business.

5 Ways to Support Franchisees

1. Providing Training and Support

Franchisors can help their franchisees by providing operational training, guidance on hiring and training employees. This can help franchisees run their businesses more effectively and improve their chances of success. Statistics have shown that companies realize a 17% increase in productivity when their employees receive the necessary and desired training.[2]

By investing in the success of their franchisees, franchisors can also improve the overall health of their franchise system.

Franchisors can also help their franchisees with site selection, lease negotiation, and access to financing. By leveraging their experience and resources, franchisors can assist franchisees in identifying suitable locations for their businesses and negotiating favorable lease terms.

Moreover, franchisors can help franchisees secure financing from banks and other financial institutions, which can be a significant challenge for new business owners.

Additionally, franchisors can provide ongoing support through regular check-ins and performance evaluations, helping franchisees identify areas for improvement and implement effective strategies to grow their businesses.

2. Sharing Best Practices

Another strategy for supporting franchisees is creating a platform for them to share best practices and learn from each other. This can help franchisees identify new opportunities, improve operations, and stay ahead of industry trends.

By facilitating knowledge sharing among franchisees, franchisors can create a culture of collaboration and innovation that benefits everyone in the franchise system. To stay competitive, 40% of the Fortune 500 companies utilize Learning Management Systems.[3]

3. Offering Financing Solutions

Franchisors can also support their franchisees by offering financing solutions to help them start or grow their businesses. More than a quarter of the respondents, precisely 27.6%, mentioned business franchising as the topmost reason to seek financing. The second most popular reasons were commercial real estate purchases/remodeling at 26.8%, and business acquisitions at 25.4%.[4]

This can include access to loans, lines of credit, or other financial products to help franchisees secure the capital they need to invest in their businesses. By providing financing solutions, franchisors can help franchisees overcome one of the most significant barriers to business ownership and growth.

4. Providing Marketing and Advertising Support

National advertising campaigns can create brand awareness and attract customers to franchise locations nationwide. Local marketing materials, such as flyers, brochures, and posters, can be customized to suit the needs of specific franchise locations and promote special offers and events. Social media marketing strategies can also be developed and implemented to drive traffic to franchise locations and engage with customers online. According to Zippia, 91.6% of Fortune 1000 companies are increasing their investments in Big Data and AI because they believe both will help them stay competitive.[5]

Franchisees can benefit significantly from the franchisor’s marketing expertise. By leveraging the franchisor’s knowledge and experience, franchisees can develop effective marketing strategies tailored to their needs and goals. This can help them improve their visibility, reach more customers, and ultimately grow their businesses.

In addition to marketing support, franchisors may also provide training and ongoing support to franchisees on effectively marketing their businesses. This can include training on social media marketing, search engine optimization, email marketing, and other digital marketing strategies. With the proper support and training, franchisees can become more confident in their marketing efforts and achieve tremendous success.

5. Helping Combat Labor Shortage by utilizing the EB-3 Visa Program

The EB-3 visa program is a valuable tool for franchisees in addressing labor shortages. This program allows employers to sponsor foreign workers with the necessary skills and experience to fill skilled or unskilled positions. By doing so, franchisees can ensure their franchise operations run smoothly, efficiently, and profitably. The International Franchise Association (IFA) states over 750,000 franchise establishments in the United States.[6] Over 8.5 million are currently employed by franchises. Over 3000 are unique franchises.[7]

The EB-3 visa program can be a great resource to locate qualified workers around the world. These franchisees can access a global talent pool and recruit highly skilled and experienced individuals for their franchise system. According to IFA, franchising has contributed around 221,000 jobs this year 2024.[8]

The program can also help franchisees create a more diverse and inclusive workplace culture. By embracing diversity and inclusion, franchisees can attract a broader range of customers, build stronger relationships with their employees, and create a more welcoming and inclusive franchise system that benefits everyone involved.

By leveraging this program effectively, franchisors can ensure the long-term success of their franchise system and help their franchisees thrive in a competitive marketplace.

Final thoughts

Franchising can offer a lucrative business opportunity for both franchisors and franchisees. It requires a comprehensive support system and ongoing communication channels to ensure long-term success. By providing training, operational support, financing solutions, and marketing assistance, franchisors can empower their franchisees to run successful businesses and drive growth. Moreover, establishing a culture of collaboration and innovation among franchisees can create a competitive advantage for the franchise system as a whole.


[1] Gitnux. “Franchise Statistics And Trends in 2024”. https://gitnux.org/franchise-statistics/

2 Devlin Peck. “Employee Training Statistics, Trends, and Data in 2024”. https://www.devlinpeck.com/content/employee-training-statistics

3 Id.

4 Kiah Treece. “Small Business Loan Statistics And Trends 2024”. https://www.forbes.com/advisor/business-loans/small-business-loan-statistics/

5 Jill Abrahamsen. “How Will Technology Change Franchising in 2024?”. https://www.franchisewire.com/how-will-technology-change-franchising-in-2024/

6 John Lincoln. “Franchise Marketing Agency (Your 2024 Guide)”.  https://www.linkedin.com/pulse/franchise-marketing-agency-your-2024-guide-john-lincoln-gjpkc/

7 Web FX. “40+ Franchise Statistics You’ll Want To Know for 2024”. https://www.webfx.com/industries/franchises/statistics/

8 International Franchise Association. “2024 Franchising Economic Outlook”. https://www.franchise.org/sites/default/files/2024-02/2024%20Franchising%20Economic%20Report.pdf