"Here's where most franchise development companies get it wrong: they treat their sales and marketing teams like short-term hired guns, paying them to hit immediate targets without caring about what happens after the ink dries. That's not just shortsighted-it's destructive. I've restructured our entire compensation philosophy around a simple principle: if our team members' biggest payday comes from the long-term success of the brands they're building, they'll make decisions that prioritize long-term success."
"We give equity in the franchise brands to our sales and marketing representatives working on those brands-not token amounts, but meaningful stakes that make them think like owners. When our VP of Franchise Development for a fast-casual concept has equity in that brand, they're not just trying to sell as many franchises as possible this quarter. They're thinking about franchisee quality, market development strategy, and brand protection because their biggest financial upside is tied to the brand's long-term growth."
Successful franchise growth requires alignment among franchisors' goals, franchisee needs, and team incentives to prioritize sustainable outcomes over short-term unit growth. Many development executives prioritize sales volume and rapid expansion, which encourages short-term decision-making. Restructuring compensation to reward long-term brand performance shifts behavior toward franchisee quality, market strategy, and brand protection. Granting meaningful equity to sales and marketing staff creates owner-minded incentives that discourage cutting corners and promote careful market development. When team members' largest financial upside depends on sustained brand growth, decisions favor enduring success across stakeholders, producing more sustainable portfolio performance.
Read at Entrepreneur
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