How to Build a Replicable Franchise Unit Model

Almost any business can fit into a franchise model if it can be replicated successfully without its founder at every location. Generally, problems tend to arise when a brand tries to franchise too early.

“If a business can’t consistently repeat its own success, it’s too early,” said Tim Conn, founder and president of Image One Facility Solutions. “A model needs to be simple, predictable and not overly dependent on the founder. If a business is dependent on the founder's personal relationships, instincts, or personality, it's not ready for franchising.”

A business is a strong candidate for franchising if there’s demand for the services, consistent margins, a defined customer profile and systems that can be repeated. The business should be able to be dropped into virtually any new market with a different operator and get similar results.

“There also needs to be clarity,” Conn said. “Can the business be explained in just a few steps? Can someone new to the business follow those steps and achieve the same outcome? If the answer is no, there's still work to be done before franchising.”

One of the biggest factors to consider is unit-level economics. The numbers have to be solid and repeatable. If a business doesn’t have that, almost nothing else matters.

Before franchising, the business should already have a solid foundation in operational systems and processes. This includes standard operating procedures, defined workflows for day-to-day operations, training systems for staff and guidelines for delivering a consistent customer experience across locations.

“That's the way that the unit models will be able to duplicate the success of the founder,” Conn said. “Everything needs to be documented; there should be step-by-step processes for everything that impacts the customer experience. It's important to teach the new franchisee not just what we do but how we do it.”

Franchisees need a clear roadmap when they buy into a brand, so these processes should already be in place before the business begins franchising.

If the business can run day-to-day without the founder being directly involved for around 60 days, then it may be ready for franchising. The team should also have a support mindset in order to grow. Franchising is about other people succeeding with your brand, so the corporate team must be ready to support them.

This might look like hiring roles like directors of franchise development, franchise business coaches, marketing executives, chief operating officers and other support roles. Franchisees should have a full team behind them.

“It's a big shift going from an operator to more of a supporting role as a coach,” Conn said. “If you're not ready to support your franchisees and invest in training and create a system for accountability, it's going to be a tough road.”