Franchisee performance is a leadership problem

Let’s be honest: When a store underperforms, the default response from many franchisors is to look at the franchisee.

“They’re not following the system.”
“They’re not cut out for this.”
“We need to tighten compliance.”

But what if that lens is broken?

What if poor franchisee performance is actually a leadership issue?

Because here’s the truth no one talks about in franchise circles:
Franchisees don’t fail because they’re lazy. They fail because they’re unsupported.

The Myth of “Bad Franchisees”

Yes, sometimes you pick the wrong partner.
But most franchisees don’t wake up trying to fail.

They’re often passionate, committed, and deeply invested, financially and emotionally. But too often, they’re thrown into the deep end with:

Inadequate training
An outdated ops manual
A tick-box field visit once a quarter.

…and expected to perform miracles

If you’ve ever said, “But we trained them,” ask yourself:
Did we train them to operate… or to perform?

Why Franchisor Leadership is the Missing Link

The performance of a franchisee isn’t just about what they do, it’s about what you enable.
High-performing networks have something in common: they build capability, not just compliance.

And that comes down to leadership.
• Leadership in how you support your franchisees
• Leadership in the culture you create
• Leadership in how you equip your field teams to lead, not just audit

You don’t build a winning franchise system by enforcing rules.
You build it by developing people.

Let’s Talk About Your Field Team

Your area managers (or franchise consultants, business coaches, whatever title you use) are the single most underutilised lever in your business.
Yet most are stuck in one of three traps:

1. The Policeman – Obsessed with compliance and brand standards but adds no strategic value.
2. The Super-GM – Spends time fixing ops issues but never builds the franchisee’s capability.
3. The Invisible One – Shows up once a quarter with no purpose, no plan, no impact.

Here’s the kicker:

According to DMS Retail, a competent multi-store manager can influence store performance by up to 20%.
That’s huge.
So why are we still treating this role like a glorified auditor?
If you want better franchisee performance, invest in the people who influence them the most.

What Great Franchisor Leadership Looks Like

The best franchisors I’ve worked with have made a mindset shift:

From control to coaching
From policing to partnering
From enforcing to enabling

They understand that the field team’s job isn’t to catch mistakes, it’s to build capability.

They create a culture of support, challenge, and accountability, where franchisees feel seen, heard, and developed.

And they train their area managers not just to inspect stores, but to grow leaders.

Ask Yourself…

Are our field teams equipped to coach franchisees on strategy, not just ops?
Do we have clear development plans for underperforming stores or just warning letters?
Are we building trust and buy-in or just enforcing rules?

If the answer is no, you don’t have a franchisee problem.
You have a leadership problem.

The Shift That Changes Everything

The minute you stop blaming your franchisees and start building them, everything changes.

Sales go up.
Engagement improves.
Store-level execution becomes consistent.
Franchisee satisfaction skyrockets.

Because growth happens when franchisees are:

Aligned with head office
Supported by competent field leaders
Empowered to solve problems, not just follow instructions

But Don’t Stop There

Franchisees are the face of your brand.
When they win, your brand wins.
If you want to elevate performance across your network, don’t start with another checklist. Start with your leadership.

Equip your field teams to coach, not just audit.
Challenge your ops culture to serve, not control.
And take radical ownership of franchisee performance.

Because at the end of the day, leadership is what drives performance.
And that starts with you.

Meet Larry Hodes at FASA’s next Virtual Networking event, where he will be discussing the Franchise Killer

Larry Hodes

Larry Hodes, with his extensive experience in franchise management, offers a transformative programme called “The World’s Greatest Multistore Leadership Programme.” This program focuses on turning area managers into strategic contributors with all the tools and insights necessary to thrive in their crucial role, ensuring they go beyond being mere tick-box operators.

Embrace operational excellence and unlock the full potential of your franchise with empowered and strategic area managers. Contact Larry Hodes