Creating a Predictable Cycle of Success for New & Emerging Franchise Brands

Building new franchise locations takes a lot of people -- smart people -- to make sure it is done well.

If you were to survey your newest franchisees to see how many of them feel confident in the areas of location intelligence, real estate, real estate legal, project due diligence, architecture, wiring and communications, construction, and construction management, would you be pleasantly surprised at the results?

How great would it be if your franchisees were not only fired up about the build-out of their next location but they actually felt confident in their ability to minimize costly mistakes without pulling valuable resources from your corporate staff? How much more profitable would corporate be if you could focus on growing the brand while royalty payments from successful franchisees were being remitted sooner because new locations are opening predictably on time?

If you think that such a scenario would be difficult and costly to implement, let's take a look at an alternative approach: the National Franchise Institute's Brick & Mortar Franchise Success program.

Our programs are taught by licensed, practicing attorneys, CPAs, architects, engineers, general contractors and other franchise professionals, not consultants. As the outsourced development training arm for your brand, these licensed professionals come together in one place at the same time so that franchisees learn about critical areas and how to prevent costly mistakes that might otherwise seal their fate before they even open.

Franchisees can use the designated outside resources that you have identified for them, they can use their own outside resources, they can partner with the licensed professionals who teach our programs, or we will help them find other resources on a local level. Our focus is on the education they need to succeed, regardless of who they partner with on the journey.

The ideal timing for the Brick & Mortar Franchise Success program is after a Franchise Agreement has been signed but before the search for real estate begins (and DEFINITELY before a lease is signed!). In most cases, this sequence fits perfectly before operations training takes place. Best of all, programs are held approximately every six weeks and franchisees (and their partners) can participate from their home or office via live webinar, or they can join us live in Denver.

Ignorance isn't bliss -- it's expensive! When franchisees launch with the tools they need to succeed, they spend their time and energy focusing on building their company and your brand in the process. By becoming exceptional extensions of the brand, everyone grows well together.

The Domino Effect of Costly Mistakes

  • Mistakes cost money. When building new locations, one simple timing mistake can easily cost $30,000 or more. Unfortunately, some of the most costly mistakes can start taking a bite out a franchisee's budget before a lease is even signed. What's worse, some of the mistakes have nothing to do with real estate!

  • When costly mistakes happen so early in the process, franchisees are rattled, frustrated and distracted for the duration of the project. The reality of how much they don't know (and what can happen next) can be all-consuming. Wasting money frustrates and scares franchisees.

  • Frustration and fear lead to stress. Stress impacts franchisees and associates at the store level -- the same associates who then serve up a dish of "I don't care" to customers. Unhappy customers don't come back -- and they usually tell others.

  • The fear and stress that originally caused these problems is now compounded by an under-performing store that is remitting lower royalty payments.

  • As the fear and frustration builds, the franchisee is calling you for help (or relief). Your eye is now on THEIR problems at the expense of growing the brand.

  • If a multi-unit Agreement was signed and the franchisee fails on their first location, will they have the money, the energy and the attitude to develop the other locations that are part of the Agreement? What if they don't?

  • How will your system's growth be impacted if they fail? How will your system be financially impacted if they fail? Legally? How much time and money will YOU spend going backward instead of forward?


  • Well trained franchisees have realistic expectations of themselves, of the franchisor, and of the licensed professionals they partner with to grow their business.

  • Increased knowledge about not only the Big Picture but also the intricate details helps them feel in control and confident. Confidence leads to successful, on time, and on budget store openings.

  • The sooner they open, the sooner they are making money (and so are YOU!).

  • When franchisees start making money, happiness, high morale, dedication and leadership are the fuels they pour back into the brand at the local level -- they become leaders!

  • Leaders lead their Teams. Valued associates deliver great customer experiences at the sales counter. Happy customers return -- again and again (and they tell others!).

  • Valued associates stay! They feel like part of a team and they may begin to see a potential career path.

  • Unit sales are high -- and so are the royalty payments they remit to corporate. And because they opened on time, royalty payments come in sooner.

  • Successful franchisees tell 'everyone' about how happy they are that they partnered with you. They influence the career paths of the associates who work for them -- associates who might even decide to follow in the franchisee's footsteps because they already know that it works!

  • If one of your franchisees' associates qualifies to become a new franchisee of your brand, what will that do to your customer acquisition cost?

  • Your eye stays focused where it belongs -- attracting new franchisees to grow the brand -- and all of a sudden, firing on all eight cylinders is just a way of life!