As a franchisee, you\u2019ve got skin in the game, so you\u2019ll obviously want some say in how things run at your location. However, there\u2019s a fine line between your autonomy and the brand\u2019s rules. <\/p>\n\n\n\n
When you buy a franchise, it\u2019s important to remember that you\u2019re not starting a business from scratch; you\u2019re stepping into a brand that has already been established. <\/p>\n\n\n\n
So, how do you balance autonomy as a franchisee? In this article, I\u2019ll break down what parts of the business are truly yours to shape and what\u2019s locked in by the franchisor. <\/p>\n\n\n\n
Let\u2019s clear something up right out of the gate: owning a franchise<\/a> isn\u2019t the same as starting your own business from scratch. <\/p>\n\n\n\n You\u2019re buying into an established business. The parent company has likely seen a lot of success from its business model, and now they are scaling that success by offering franchise agreements to entrepreneurs like you.<\/p>\n\n\n\n What you get in return is the ability to use the brand\u2019s name, systems, intellectual property, and business plan<\/a>.<\/p>\n\n\n\n That means you\u2019ve got a playbook to follow. You\u2019re here to execute what\u2019s already been proven to work. Expect guardrails. You\u2019ll obviously bring your own local expertise and knowledge to the table, but you shouldn\u2019t expect to have full control over your operations. <\/p>\n\n\n\n Almost half of all independent startups shut down within five years. Franchises’ failure rates<\/a> are much lower. Only about 4% close<\/a> during that same time. This structure and reduction of risk are what make a franchise worth the investment<\/a> for a lot of owners.<\/p>\n\n\n\n Every franchise system has guardrails. These are the parts of the business that are locked in. Franchisors create these guardrails to protect the brand. Without these standards and rules in place, the brand can become diluted.<\/p>\n\n\n\n Let\u2019s break down what\u2019s typically off-limits.<\/p>\n\n\n\n The parent company will almost always have strict rules on branding. You don\u2019t get to redesign the logo, switch up the colors, or outfit your staff in whatever you think looks nice. Branding is a sacred part of franchising. It\u2019s what holds each location together and is what allows customers to recognize the business, whether they\u2019re in Miami or Milwaukee.<\/p>\n\n\n\n Any major change to how the brand is presented chips away at the trust customers have in it.<\/p>\n\n\n\n If you’re running a restaurant franchise<\/a>, you can\u2019t just toss a new item on the menu at your whim. While some companies may allow you to offer regionally inspired or locally popular items, you\u2019ll need to get those additions approved by the franchisor first.<\/p>\n\n\n\n The same goes for other types of franchises<\/a>: A retail franchise<\/a> can\u2019t start selling unapproved products, even if there\u2019s local demand, and a fitness franchise<\/a> can\u2019t introduce a new class without corporate approval.<\/p>\n\n\n\n The products your franchise sells have been tested, strategically priced, and backed by the supply chain. Changing it on your own can affect your operations and damage customer expectations.<\/p>\n\n\n\n Most franchisors will provide you with pre-approved ads and marketing templates. These are designed to keep the message tight across all locations. While you may be able to create your own custom local advertising materials, you\u2019ll need to get them approved.<\/p>\n\n\n\n As a general rule: if it hasn\u2019t been approved by corporate, don\u2019t put it out there.<\/p>\n\n\n\n Not every franchise brand controls pricing, but if yours does, it\u2019s not something you can tweak. If the parent company has controls on pricing, you can\u2019t run a \u201clocal discount\u201d to beat the competition down the street.<\/p>\n\n\n\n Even if you\u2019re just trying to boost sales, changing the price can undercut other locations within the brand and hurt other franchise owners.<\/p>\n\n\n\n This one gets overlooked a lot. You might think buying local or going with a cheaper supplier makes more sense, but the franchisor picked its vendors for a reason. <\/p>\n\n\n\n This is all about quality control. If you purchase materials that are better or worse quality than those that other locations use, it can confuse customers and create an inconsistent brand experience. <\/p>\n\n\n\n Imagine walking into a McDonald\u2019s and the seating looks like a local diner. It\u2019d be confusing, right? The way your place is set up, from where people enter to how they check out, is part of the proven system. Even a seemingly small change can throw off the entire customer flow and confuse customers. <\/p>\n\n\n\n When you open a franchise location, you\u2019ll receive training resources, and you\u2019re expected to use them as-is. This includes how you train your team, what materials you use, customer service standards, operational guidelines, and more.<\/p>\n\n\n\n If every location within the organization were trained differently, the whole brand would feel disjointed. Stick with what the franchisor provides, because it works.<\/p>\n\n\n Sign up for our free email newsletter. It’s a 5-minute read once a week to help you level up on the franchising industry.<\/p>\n\n\n\nFranchisor\u2019s Guardrails: What You Can\u2019t Change<\/h2>\n\n\n\n
1. Branding (Logos, Signage, Uniforms)<\/h3>\n\n\n\n
2. Menu or Product Lineup<\/h3>\n\n\n\n
3. Marketing Language<\/h3>\n\n\n\n
4. Pricing (in Some Systems)<\/h3>\n\n\n\n
5. Vendors or Suppliers<\/h3>\n\n\n\n
6. Store Layout or Customer Journey<\/h3>\n\n\n\n
7. Training Methods and Materials<\/h3>\n\n\n\n
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