Franchise Growth: Who Is the Model Working For?
Opening new locations is easy to count. The value of a franchise is harder to measure.
What happens when individual franchisees leave, while the master franchisee continues to sell new locations? Is the business still growing, or is it replacing people who could not make the model work?
A new opening can create immediate income. A struggling location can quietly consume time, damage trust and weaken the concept in its market. If franchisees leave and are simply replaced, the sales figures may look healthy while the network becomes less stable.
Growth depends on more than signing agreements. It depends on whether the master franchisee and individual franchisees can both succeed under the same commercial model.
“When a franchisee leaves, is the system learning why, or simply looking for the next one”