The 'Executive Model' of Franchise Ownership

Franchising, especially in the home services industry, has come a long way. Today, leadership and strategic growth are more important than ever, and one approach that is gaining traction is the executive franchise model. This model shifts the focus from hands-on, owner-operated businesses to a leadership-driven framework. It’s designed for people who aren’t just interested in owning a business, but are ready to build and scale it effectively.

Why the executive model?

In the service industry, there are unique challenges that come with delivering consistent, high-quality experiences across multiple locations. The executive model is designed to meet those challenges by attracting franchise business owners who are not only invested in ownership, but also prepared to focus on leadership and team building. Unlike the traditional approach, where franchise business owners are heavily involved in daily operations, the executive model is about overseeing a team, driving growth, and focusing on long-term goals. 

Franchisors looking to adopt this model need to understand what makes it work. At Pillar To Post, for instance, we’ve found that the most successful franchise business owners share key traits like self-confidence, accountability, strong communication skills, and a willingness to embrace the side of sales.

Ideal candidates for the executive model

The executive model appeals to a specific profile of franchise business owners. Ideal candidates often include transitioning business professionals, sales and marketing executives, real estate investors, and mid-to-high-ranking military veterans. These individuals bring a wealth of experience in leadership, management, and strategic planning which are qualities that are essential for driving a successful business. 

For example, someone moving from a corporate role or a former sales executive might already know how to build and manage teams, making them a great fit for this model. Similarly, military veterans bring a disciplined, leadership-oriented approach that can easily translate to the franchising world.

Financial and operational requirements

Service brands, in particular, benefit from franchise business owners who are financially prepared and ready to invest in their growth. For the executive model, candidates need to have a financial plan in place, including liquidity for initial investments and operating capital, as well as being committed to being all-in on their business. You’re looking for people who aren’t just financially stable but are also ready to pour their time and energy into growing their business.

In addition to financial preparedness, they need to be comfortable with technology and have certain technical skills, such as proficiency with digital tools and software. This ensures they can effectively manage and scale their operations, using the resources and systems provided by the franchisor.

Aligning with values and systems

Another key aspect of the executive model is ensuring that franchise business owners align with the franchisor’s values and understand the franchise system. They need to know the difference between entrepreneurship and franchising—acknowledging that while they have the freedom to grow their business, they must also adhere to the established system. This balance between independence and following the framework is what makes the model work.

For franchisors, the challenge lies in identifying and selecting the right candidates. It’s not just about finding someone who wants to own a business, it’s about finding those who want to build, grow, and eventually sell a successful business. Service brands depend on this model to ensure their high standards of customer service are maintained, even as they expand.

Building a scalable business 

Ultimately, the executive franchise model is about scalability. Franchisors need to provide the tools, support, and systems necessary for franchise business owners to succeed. This means continuously improving and innovating to ensure franchise business owners have what they need to grow their businesses efficiently.

Charles Furlough is the president and CEO of Pillar to Post, the largest home inspection company in North America.