How to Grow the Capability of Existing Franchisees

*These notes were taken from Greg Nathan’s Thought Leadership Round Tables at the 2025 IFA Convention

At FRI we define growing capability as helping franchisees to enhance their motivation and ability to:

1.    Maximise the profitability of their business.

2.    Create happy customers who become advocates for the brand.

3.     Enjoy the business and participate constructively in network initiatives.

Here are seven proven strategies and 49 actionable tips that are being used by successful franchisor executives to help existing franchisees grow their capability and their businesses. We suggest you use this list in your operations meetings, and identify specific strategies and tips your field coaches might like to focus on.

#1: Encourage them to maintain a Growth Mindset*

• Revisit with them why they became a small business owner, and their current goals and aspirations.
• Invite them to get involved and contribute to special project groups.
• Remind them of the various opportunities available to improve their knowledge and skills, e.g. LMS courses, workshops, area meetings and conferences.
• Involve them in sharing what works with each other using round table and panels.
• Facilitate learning groups that discuss useful books and videos, and encourage them to participate.
• Track their learning and provide recognition and reward for completion.
• Role model a Growth Mindset by also constantly trying to improve yourself.*The Growth Mindset was coined by psychologist Carol Dweck to describe the attitude of wanting to improve, rather than prove, oneself.

#2: Provide processes to recruit talented staff

• Connect them with vendors who can assist with recruiting and screening candidates.
• Provide them with proven testing and evaluation tools for assessing staff.
• Provide templates for job specifications, with the competencies needed for the role.
• Train them in important HR skills and processes related to conducting interviews; effective onboarding and exit interviews.
• Instill a mindset of hiring ahead of their current needs to allow for future growth.
• Train them in how to give career talks at local schools and institutions; and provide work experience, placements and internships.
• Show them how to develop career pathways for the various roles in their business.

#3: Develop their leadership skills

• Train them in the management skills suitable for the size of their business (supervision for smaller businesses and leadership for larger businesses).
• Make available profiling tools to encourage greater self-awareness, e.g. DISC.
• Provide tools to identify high potential talent, and encourage them to grow from within.
• Coach them to practice good leadership habits such as:
  • Setting a good example and role modelling the values of the business.
  • Getting to know their team as individuals.
  • Greeting and thanking each team member each day.
  • Being clear on expectations and holding team members accountable.

#4: Have tough conversations when required

• Remind them that it’s important to communicate regularly, particularly if they have withdrawn or are not engaging enough.
• Ensure you are having the conversation for the right reasons and they understand why.
• Be clear on your expectations of them and ask for permission to hold them accountable.
• Take ownership of how you may have contributed to any difficult situations.
• Be specific with facts or behaviours that are causing problems and explain why.
• Practice the FRI’s NEMO* technique: Naming facts about the situation; Empathizing with their point of view and being helpful; Move On the conversation towards solutions.*We teach this and other useful coaching/communication skills in our Field Manager Bootcamps.

#5: Mentor them to maintain a business plan

• Provide them with a business plan framework that is practical and simple.
• Ensure their plan has monthly or quarterly goals, and action steps.
• Regularly review and discuss their progress on their goals.
• Have good systems for collecting KPIs and show them how to use these to improve profitability.
• Use a benchmarking process so they can compare their metrics with the group.
• Target the five most important KPIs and review these with them regularly.
• Set up Performance Groups, where they can share data and hold each other accountable for their goals.

#6: Motivate them to grow sales

• Remind them that growing their market share will enable them to have a bigger impact in their local community.
• Set ambitious sales goals with them and then work backwards on how they can achieve these.
• Train them on basic selling skills and processes, and encourage them to recruit a salesperson if their business is large enough.
• Train them in networking skills and encourage them to attend local community groups.
• Help them align their local promotions with the network’s marketing strategies.
• Encourage them to be involved with the local community, e.g. sponsoring worthwhile causes.
• If growth requires investment, help them find suitable finance.
• Work with them on relevant market research so they understand the size of their local market and their competitors.

#7: Encourage them to reinvest and expand

• Set expectations early that they will need to reinvest in the business.
• Conduct formal expandability assessments to identify franchisees that are ready to open additional units.
• Provide them with access to Multi-Unit Operator training programs.
• Discuss the return on investment (ROI) for any new initiatives.
• Provide evidence of how reinvestment has worked with other businesses in the network.
• Encourage them to be clear on why they want to reinvest and grow the business.
• Partner them up with other franchisees that have gone through the reinvestment process.
• When asking them to take on new challenges, provide evidence of the credibility of the information you share so they know it is trustworthy.
• Invite successful franchisees from other brands to your conference to talk about how they have reinvested in their business.