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The Biggest Secret in Franchising

leadership planning profit Oct 25, 2022
Franchising Biggest Secret

There is a little-known fact in the franchise industry and most franchisees only find out about it after they start to operate on their own. That’s when they realize something is missing and they have to overcome this to be successful. 

  • This is the biggest secret in the franchise industry and the reason why a lot of franchisees struggle when they begin operations. 

The good news is that once you discover the truth you can take action and overcome it. The better is that on this blog post you’ll learn not only what the secret is but what you can do to achieve the goals and the dreams you expected when you decided to get into franchising.


What is this secret about?

The secret is that when you acquire a franchise you do not get everything you need to be successful. Even though a lot of expectations and assumptions are that you do, the reality is that you do not. So, what are the things that you do get? 

  1. A brand created by a founder that, after operating with success, transformed its business model to sell franchises.
    But, what's in that brand? A specific product or service that somebody developed. There is also the service process in which you deliver it to the consumers. 
  2. You also acquire the image or everything you see, touch, and smell about the brand. 
  3. The franchise’s marketing whether it's regional or national, depending on the size of that brand.
  4. The franchisor is also responsible for giving you the tools, resources, and knowledge to duplicate the brand.

Don't get me wrong, this is a great deal! When you buy a franchise you get a proven and successful brand. Because of that, the consumers are willing to give you money for what you sell and those sales will give you the revenue you need to have a business that gives you profits

Do you know what’s the average franchise profit percent you can make? Find out in this blog post.

The other side of the coin is that when you invest in a franchise you do not get a management degree. 

Think about it! If you did, the franchisor will clearly have to charge you more money for that business expertise and knowledge, as well as the tools and the instructors to teach you how to manage the business, not the brand.

Besides, you have to remember that there is a franchisor-franchisee employer liability issue. If they get into the details of how to manage the business, the people, the financials, and the business structure, legally you are considered a joint employee in the United States. 

That means that this franchisor is liable for anything that you or your employees do in your organization.

The franchise business model has two parts: the brand that brings you the revenue and the management processes to make the profitability

As I explained earlier, franchisors focus on providing you with the tools and resources to duplicate the brand. That means that when you become a franchisee, you have half of the problems solved when it comes to business success. 

But it is up to you to acquire the knowledge and information to manage the business successfully


How to overcome this necessity?

If you want to thrive with the franchise you invested in, you have to find a way to solve this issue to obtain the other 50% of the franchise success formula. These are my recommendations to do it.


1. Be aware of what you are missing

The fact that you are reading this blog means that you know you're not going to get everything from the franchisor and that there are certain things that you need to acquire to ensure your success as a franchisee.

Don't miss: Do you have the right franchise? 5 clues to find out!


2. Search for the knowledge you are missing

The second thing you need to do to be a successful franchisee is train yourself to acquire that business management knowledge. 

There are several places where you can look for that:

  • Family & friends who are entrepreneurs and successfully run their businesses. Ask them for their best practices and tips. 
  • Engage with the network of fellow franchisees, both of the brand and of the industry you belong to. This is one of the big benefits of entering the franchise world and they can give you advice for your franchise business management.
  • Read related books and enroll yourself in learning programs like the ones The American Franchise Academy provides. 

Subscribe to our YouTube channel to see all past and future shows and get valuable information to help you become a successful franchisee.

3. Implement business systems

Everything that you learn you have to translate into business systems. Document them and train your people on them to generate the expected results for your franchise.

Another piece of advice: you have to implement those business systems with the same level of consistency and discipline in which you duplicate the brand systems.

4. Keep learning!

If there’s something that the last two yeast have taught us is that things change constantly. And it is crucial to keep yourself informed so you can maintain your business and management systems up to date and on top of the disruption.

2022 Disruptions in the franchise industry: where should you put your sight on?

Keep in mind that your franchisor will also move things around, updating the brand, and creating innovation and communication systems to make sure the brand evolves and improves through the years.


I hope this was of value to you and that, now that you have discovered the biggest secret in the franchise industry, you can overcome this and thrive with your organization.

If you're looking for something a little bit deeper and you require more tools to help you be successful, I strongly recommend you attend our Multi-unit Franchisee Masterclass.

In it, we share the systems, processes, and procedures that top-performing franchisees implement in their business to grow and have scalability for the long term.

If you would like to learn more about how you can learn those management systems so you can be successful, join us in the upcoming Multi-unit Franchisee Masterclass

Go to to register for our free workshop and learn what are those systems you need to create to have the profitability and the business and financial results you want and deserve.

Reach out to us! Subscribe to our YouTube channel and follow us on Facebook, Instagram, and LinkedIn. Also, listen to our Franchise Success Formulas podcast on Spotify and Google Podcasts.


  • What business systems you are lacking to be successful with your franchise?
  • How developed are your business policies, processes, and procedures?
  • Can you think of any mentor, coach, family member, or friend that can help you thrive in your business?
  • How are you keeping up to date with your business and your industry?