Building Value vs a Comfortable Living

Generating a ‘win-win’ is an age-old debate in franchising: how can a franchisor drive a win-win relationship with their franchisees in a way that excites, rather than causing them to ‘turn off’? 

I am talking about a very specific scenario, but one that is all too commonplace in the franchise arena.  

Traditionally, a franchisor will tell their network the minimum performance expectations they have – in fact it is often found in the depths of the franchise agreement! The degree to which this is monitored and managed varies from franchise to franchise, however its delivery can often feel much more ‘stick’ than ‘carrot’, having the opposite of the desired impact.  

Often, franchisors will provide what may seem to franchisees to be arbitrary sales targets which will, in the mind of a franchisee, primarily benefit the franchisor through increased Management Service Fee.  

Consequently, Mr or Mrs Franchisee thinks to themselves: “Why would I work so much harder to benefit the franchisor’s pocket, when I am perfectly happy making a living of £X a year?” And to a degree, that is understandable!  

The approach that we have found time and time again that proves more effective is creating a win-win by aligning the franchisee’s personal goals and business objectives.  

A franchisee’s personal goals will have a financial value that can be attributed to them. We encourage a franchisee to go through a defined process, to cost out their personal goals and to calculate – then understand – what their business needs to sell for in the future in order to achieve those goals. 

For example, maybe the franchisee has their sights set on retiring in 3 years’ time and they wish to buy a holiday home on the coast of Portugal. Lovely. How much is a three-bed apartment in Portugal going to cost? If it’s significantly more than the value the franchisee could achieve for their business right now, then there is some work to do. 

As franchisor, you, or someone else who can if you cannot, must educate franchisees on the factors that impact the value of their business, which is a saleable asset, then inform them how they can go about building their current value to the value necessary to achieve their personal objectives. 

Through linking business growth and development to ‘What’s in it for me’ – the franchisee buy-in is far greater. Suddenly, it’s not just about boosting MSF payments! 

We have helped many franchisees realise the importance of good business behaviours and outlined key steps to take to boost business value. There are few things more rewarding than hearing feedback from clients saying your input has helped them transform their business behaviours and achieve lifelong dreams. 

If this is an area you wish to explore in greater detail, Chantry Group can help. Contact us on

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Whether you’re looking to buy a franchise, sell a franchise or have your business independently valued – you’ve come to the right place.