I once had a close advisor tell me that running a franchise system was like being the warden of an insane asylum. No joke.
Their working thesis went something like this:
Part of running a franchise system meant keeping everyone on the same protocol. Up at the same time, doing the same activities, and most importantly, taking the same medication.
According to them, when everyone followed the same protocol, things generally ran smoothly. But when franchisees stepped out of line or skipped their medication, everything had the potential to go off the rails.
Best to keep them heavily regimented and medicated. That was their theory.
Fuck of an analogy! And while I understood parts of what they were getting at, I might have opted for the classic parent and child comparison.
For instance, the franchisor (aka the parent) has the benefit of experience, having seen what works and what doesn’t. Like a parent, a franchisor should want to see their children thrive. Sometimes that involves encouragement. Other times, it requires a little tough love.
What I did observe over 15 years of building a franchise system, however, was two very different sets of characteristics:
The Anti-Franchisee List: 5 Archetypes of Risky Partnerships
The Pro-Franchisee List: 5 Archetypes of Successful Partnerships
The Anti-Franchisee List: 5 Archetypes of Risky Partnerships
When a concept starts to scale, you take risks, test markets, and learn through trial and error. Through this, you figure out not only who to sell to, but also who to avoid. Specifically, in hospitality-driven models, where I spent those 15 years, not everyone is created equal. Often, franchisors are asked what makes a great franchisee. For the purpose of this list, I want to flip the script and focus instead on the human characteristics that make for a risky partnership.
1. The Passive Income Tourist
To them, hospitality is just another “business vertical.” They pursue franchising as a side quest, expect “mailbox money,” and treat their investment like a rental property. Or they approach ownership like a retirement account, funding it once and expecting it to quietly grow while they sit back. The problem is, business ownership is not a hobby, especially in industries that demand personality. When adversity strikes, they are quick to blame the system. To them, success is something that is supposed to happen, not something they planned on earning.
2. The Status Collector
They do not yet understand the weight of an owner’s presence. Seduced by the aesthetic of ownership, they are not willing to live it. They assume branded hoodies at brunch and social selfies are the passport to viral success. At the same time, they cringe at the idea of early mornings, late nights, and weekends. What they have yet to learn is that leadership shows up in the unglamorous moments when no one is watching, like mopping the floor at 10 p.m. when the cleaner calls out sick.
3. The Turnkey Balance Dreamer
They’ve been sold on the idea that the road to balance runs through business ownership, with a franchise system serving as the accelerant. A turnkey path to more freedom, family time, and endless travel. Worse, they think a strong system replaces effort. What they do not realize is that business ownership is hard, and balance comes later, but only as it is earned.
4. The Corporate Success Story
Armed with a shiny resume, they are convinced their previous 9-to-5 success has prepared them for entrepreneurship. What they fail to admit is that they value predictability. Unfortunately, entrepreneurship comes in waves of uncertainty, with no guaranteed paycheck and no HR safety net. When the conversation shifts from 9-to-5 to 24/7, they find themselves in uncharted waters.
5. The KPI Cave Dweller
They do not understand the law of attraction and often lack social capital. They prioritize technology and metrics before considering the value of human connection. Too reliant on spreadsheets and overly complex KPIs, they miss the unmeasurable: how energy is contagious and culture starts at the top. Handicapped by these blinders, they create a trickle-down effect that can cripple frontline operations and the unit-level hiring process. Unwilling to recognize the “it factor” of a customer-centric business, they convince themselves that automation can compete with human connection.
The Pro-Franchisee List: 5 Archetypes of Successful Partnerships
On the flip, after 15 years of building and operating inside a franchise system, there are certain characteristics I’ve consistently seen separate high performing franchisees from the rest. These patterns have repeated themselves enough times that they’re difficult to dismiss.
1. The Hands On Owner
There is no substitute for an owner who lives and breathes the brand. The most successful markets almost always have an owner who is deeply engaged in the business. They set the tone from the top, but they are also close enough to the day to day operations to drive standards and accountability with their team. Franchise systems are not designed to be passive investments. The strongest operators lead from the front.
2. The Team Player
To benefit from a franchise system, you have to believe in its DNA. When communication from HQ is skimmed, ignored, or filtered through “we already do it our way,” important signals get lost and the system’s culture begins to splinter. High performing operators approach the system with both curiosity and restraint. They commit to a team first mindset and play for the logo on the front of the jersey, not the name on the back.
3. The Long Game Operator
Even the best systems need time to work. Marketing campaigns take time to dial in. Pricing strategies evolve. Operational changes often feel uncomfortable before they become effective. Those who abandon initiatives too quickly tend to isolate themselves and rarely experience the payoff. High performing operators stay committed long enough to see the upside.
4. The Coachable Competitor
Some operators wait for feedback. Others actively seek it out. The strongest franchisees surround themselves with high performing peers. They share numbers, compare results, and treat feedback as an opportunity to improve. They understand that criticism isn’t always personal, even when they’ve invested considerable time, energy, and money into their business. Rather than allowing personal biases or market biases to cloud their judgment, they separate emotion from opportunity and turn constructive feedback into action.
5. The People’s Champ
The law of attraction. The ultimate X factor. Strong operators create momentum around them and know their presence in the market matters. They are visible in the community, connected to their members, and engaged with the people around the business. Charisma, authenticity, and genuine relationships create reach that marketing alone cannot replicate. Staff want to work for them and communities want to support them. When the other qualities are in place, this becomes the force multiplier. The strongest franchisees do not just operate a location. They become an aspirational presence that naturally attracts people to the brand.
Brandon Cullen
In search of life’s [im]perfect soundtrack ...