6 Ways Executive Coaching Benefits Franchisors — and Their Franchisees 

December 22, 2023


Melinta Case Study


Franchisors have a lot to manage on a daily basis, from ensuring brand consistency across locations to operational efficiency to franchisee relations. Running a franchise-model business is no small undertaking — and if any one of your franchisees underperforms, it can have a serious impact on your bottom line and your brand reputation. While Franchise Development Consultants (FDC) are a great help with implementing the systems and strategies that it takes to run a successful business, franchisees with little to no business experience have some critical skill gaps when it comes to leadership, decision-making, and culture management. 

That’s where an executive coach can help. Focusing on individual or team development in a broader professional context results in greater self-awareness, accountability, a concrete vision for what it takes to succeed and how to get there, improved performance and productivity, and more. 

Here are six reasons why investing in executive coaching for franchisees is well worth it for everyone involved. 

1.Improve Franchisee Performance 

When a franchisee does well, a franchisor does well. Not everyone who decides to purchase a franchise has business or leadership experience, so executive coaching helps franchisees identify blind spots and become a more effective leader. (Even if a franchisee has business experience, a great leader consistently self-reflects and strives to do better.) In turn, this results in a more clearly focused vision, stronger culture, and better communication and conflict resolution. These are skills that can help turn an under-performing franchisee into one of your strongest brand representatives. 

2. Reduce Costly Employee Turnover 

Having strong leadership in place can have a profound impact on business profitability. Perhaps one of the most obvious is employee turnover, one of the biggest problems for companies that hire hourly workers. The national average turnover rate is 47.2%, BUT highly engaged employees are 87% less likely to leave (Zippia, 2023). It’s estimated to cost anywhere from $5,000 to 6-9 months’ worth of pay to replace an employee when they leave. 

Management has a direct effect on employee experience. Strong leaders who can create a supportive culture, communicate clearly and consistently, and are an example of passion and positivity results in more engaged employees. More engaged employees are more likely to stick around, provide a better customer experience, and become a source of employee referrals.  

3. Enhance Customer Experience 

Even though you may have multiple franchisees with businesses across the country, all customers see are a single brand. They expect a certain standard of service and product at every location they visit. If a customer walks into one location and has a poor experience, there is a huge risk of them associating that poor experience with your entire brand, not just that one location. Executive coaching can help strengthen franchisee leadership and build a culture that is aligned with your brand standards so that the customer experience is consistent no matter where the customer goes. 

4. Align Business Strategies 

Executive coaches help franchisees develop and refine their business strategies beyond the basics, supporting them in setting clear achievable goals for professional and personal growth that also align with the franchise framework. Not only that, but an executive coach can help your franchisee adapt to market changes as regional trends and consumer preferences evolve. Being able to pivot and adjust strengthens your brand and not just helps your franchise stay relevant, but helps you stay ahead of the competition.  

 5. Stay Accountable 

The worst thing a franchisee can do is create a great plan that never gets off the ground. We get it — running a business requires wearing many hats and there isn’t always a focus on stopping and thinking strategically. Having an executive coach to hold a franchisee accountable for their goals and actions ensures that growth is a priority. The relationship can almost be one of a mentor and a mentee, with the coach offering support, guidance, and encouragement throughout the process. 

6. Get a Positive Return on Your Investment  

Supporting your underperforming franchisees with executive coaching is one of the better investments you can make as a franchisor. In fact, MetrixGlobal LLC found that for every $1 invested in coaching, companies surveyed received an average return of $7.90 — nearly an 8x ROI! Another MetrixGlobal LLC study found that Fortune 500 companies that used executive coaching had an ROI of 344%, while the International Coach Federation’s Global Coaching Client Study found that clients who used executive coaching reported a median ROI of 700%.  

The financial proof is in the pudding, but it’s not all about numbers — coachees report improved leadership, better decision-making, enhanced team dynamics, and increased employee engagement. 

Better Leaders Get Better Results 

At Velocity, we believe that executive coaching should be personal and intentional, not formulaic. Our coaches help franchisees develop strategies and plans that fit their personal and professional goals that also aligning to your franchise framework. Whether your franchisees are starting from scratch or have some leadership experience, our proven approach helps clients — and their businesses — reach their full potential. Contact us today to learn more.