Entrepreneurial Franchisees Drive Revenue Growth

Franchising represents a unique form of entrepreneurship, mainly because it reduces some of the uncertainty associated with starting your own business from scratch.

Franchising involves a firm selling a business model that generally has been tested and proven which entitles the franchisee the rights to market goods and services under the organizer’s brand name.

Franchising includes uniformity of systems that makes brand recognition easier.

However not all franchisees are created equally.

I have owned up to five franchises in the last ten years. In those years I have at a minimum doubled sales and increased profits in all the stores.

These locations have been used as a training site for new franchisees coming into the business. This gave me the chance to meet a variety of franchisees from all across the country.

With this close proximity, I could see that not all of the owners had similar background, experience or confidence-therefore they were not all going to become equally successful.

Franchisees come from different backgrounds, and diverse industries.

Research shows that 25% of franchisees are high achievers or performers and 40% are rated by their franchisors as being steady performers.

What does it take to become a high achieving franchisee?

According to Merrilees and Frazer:

  • You have to place relatively more importance on branding and marketing support from the franchisor
  • High performing franchisees are more effective at cross-selling, contributing to a higher profit margin
  • You have to be more proactive at managing loyal customers through higher levels of service quality.

On the other hand, low performing franchisors place relatively more importance on basic operational, accounting, training and emergency support from the franchisor

As a franchise owner, I have been a part of the top 25% . That meant, thinking outside of the box and looking at ways to grow sales and increase profit.

We focused meticulously on what was happening with our costs, inventory controls and the cleanliness of our stores. We made sure that we hired the best staff and offered incentives that would motivate them. We also made customer service our number one priority.

Business Smarts

Franchisees who are high achievers tended to be more entrepreneurial or knowledgeable about business overall. They took the time to study and become masters at their craft and their industry. They are more innovative and are constantly on the lookout for ways to grow themselves. High performers are more likely to use a detailed accounting system to control costs.

Taking time to attend conferences and to become more knowledgeable about your industry or hiring a coach/consultant are some of the ways to increase business smarts.


 To become a high performing franchisee you need to have a higher level of productivity which comes from greater efficiency.

It is important for franchisees to pay attention to servicing and caring for appropriate levels of assets, including vehicles, equipment and inventories.

 Personal Characteristics

 High performing franchisees are more driven and ambitious. Setbacks are often viewed as opportunities rather than problem. They are more confident in their abilities than low performers. They place less reliance on support services because they are very self-sufficient.

Another trait of high performing franchisees is that they become mentors for other franchisees. Sharing their knowledge to help other franchisees often comes naturally.

 Marketing and Branding

Overall marketing and branding services are valued more strongly by HPF. In other words, this suggests that some franchisees are more oriented towards marketing. As a result they appreciate any help provided by the franchisor because this helps them to promote their business.

High Performing franchise owners are generally much stronger in all aspects of marketing, including being able to grow the business, to cross-sell, to get higher profit margin and sales to manage loyalty among customers.

Would you consider yourself to be a high performing franchisee? Leave a comment below.


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