Your Franchisees Are Your Development Strategy

Franchise development is often measured by new leads, signed agreements, market expansion, and openings. Yet some of the most important work a franchisor can do to support future growth is already happening within the existing system.

The health of an existing franchise system is a leading indicator of the health of its future development pipeline. In fact, strong franchisee relationships can influence nearly every stage of development, from validation and referrals to reinvestment and overall brand reputation. Rather than viewing franchisee satisfaction and franchise development as separate priorities, franchisors should recognize how closely they are connected.

Think of it as a cycle: strong support creates greater franchisee confidence. Confidence can turn franchisees into advocates, and advocacy can strengthen development by giving prospective operators an authentic view of what it means to be part of the system. And when existing franchisees choose to reinvest, they provide perhaps the clearest signal that the model and the relationship are working.

Start with the franchisee experience

The cycle starts with creating an experience that earns franchisee confidence. That means consistently delivering on the fundamentals like real estate and development resources, operations and training support, brand awareness, and marketing and technology innovation that makes the business easier to operate. Ultimately, the franchisor should help franchisees build stronger businesses, improve unit-level performance, and create confidence in deploying additional capital for sustainable growth.

Alignment becomes more credible when the franchisor has skin in the game. Potbelly operates more than 350 company-owned shops. This gives us significant visibility into the same real estate decisions, operating pressures, and shop-level economics our franchisees navigate. This perspective allows our support to evolve alongside our franchisees. Understanding where franchisees are in their operating lifecycle, from new openings to mature shops, creates opportunities to provide relevant resources at each stage.

Additionally, a franchisor’s ability to keep franchisees connected to the broader brand can influence franchisee satisfaction. Programs such as annual awards, incentives, continued education, company and industry conventions, and opportunities to connect with fellow operators can create a stronger sense of involvement in the brand. These touchpoints help build a system where franchisees feel connected to its direction and invested in its future.

When satisfaction becomes advocacy

When the foundation is strong, franchisees become some of the most credible and authentic voices in the development process. Their advocacy can take many forms: participating in development events, joining the brand at trade shows, sharing their stories through media and social channels, engaging with candidates at Discovery Day, referring qualified operators and, ultimately, choosing to expand their own agreements.

Each of those actions carries weight because prospective franchisees want to understand what ownership looks like. A development team can explain the business model, support systems, and growth strategy, but an existing franchisee can validate how these brand initiatives translate into the day-to-day experience of operating within the system.

That validation can be particularly valuable when it comes from franchisees at different stages of their ownership journeys. A newer operator can speak to onboarding, training, and opening support, while an established multi-unit owner can provide perspective on scalability, ongoing support, and what gave them the confidence to reinvest. When that operator chooses to put additional capital behind the brand, the decision carries a level of credibility no development presentation can replicate.

The goal should not be to create a group of franchisees who can repeat the right talking points. The strongest validation comes from operators who participate because they are proud of the businesses they have built and confident in where the brand is headed. Prospective franchisees can tell the difference.

For franchisors, that means the work behind franchisee validation happens long before a candidate ever speaks with an existing operator. It happens through every interaction, resource, investment, and decision that shapes the franchisee experience.

Development starts from within

Building a franchise development pipeline should not begin and end with how to generate more leads. Franchisors should also look inside their existing system and consider the experience they are creating for the operators already there.

Are franchisees receiving the support they need? Do they understand where the brand is headed? Do they have confidence in the growth strategy? Are they seeing continued investment in the business model? Ultimately, would they choose to invest in the brand again? If the answer is yes to each of these questions, franchisees are satisfied and become advocates and referral sources. Sustainable franchise development starts with building a system in which existing operators have a strong belief and a desire for continued investment.

Jennifer Durham is senior vice president of franchising and development at Potbelly, where she leads the brand’s U.S. franchise growth strategy and development efforts.