The Franchisor’s Five™ – The Rollercoaster of Building a Brand
Last week I was talking with a founder who said, “Maybe I shouldn’t have franchised at all.” I smiled, not because I enjoy their pain, but because I’ve been there. I’ve said those same words myself.
The truth is, franchising isn’t a straight line. It’s not “up and to the right” from the moment you decide to expand. It’s a rollercoaster, full of highs that make you feel unstoppable and lows that make you question everything.
That’s why I created a framework I call The Franchisor’s Five™. It’s the five predictable stages every founder will experience on the journey from Spark to Legacy. And here’s the good news: you’re not alone, and you’re not crazy. What you’re going through is normal.
The key is knowing where you are, and what comes next, so you don’t get stuck in the hard places or give up too soon.
Stage 1: The Spark
The big dream ignites and you see franchising as the way to scale your business and change your life.
Franchisors here say things like:
“We’re going to be the next [big brand], I can feel it.”
“This is going to be so fun, other people will love running this business as much as I do.”
For me, The Spark was meeting with Joe Croce, the founder of CiCi’s Pizza. I spent three hours just soaking in his brilliance about franchising, furiously taking notes and trying to absorb every detail so we could use it to build our brand. I walked away buzzing with possibility, convinced franchising was our rocket ship.
In The Spark, everything feels exciting. The challenge is that you’re still wearing rose-colored glasses, you can’t yet see the hidden costs or the grind ahead.
It’s a stage full of energy, possibility, and vision. But it’s also full of blind spots, because reality hasn’t set in yet.
Stage 2: The Setup Shock
The reality of franchising hits, costs, compliance, and complexity replace the dream haze.
Here’s where you start saying things like:
“Wait… how much is the FDD going to cost?”
“Why do I need a 200-page operations manual?”
We learned this the hard way. We used every bit of profitability from our corporate location to bootstrap the franchise system. For five years, we didn’t pay ourselves a dime of full-time income…everything went back into building the infrastructure. It was exhausting, but we believed it was the only way to create cash flow and make the dream possible.
The Setup Shock is overwhelming. It’s when founders realize franchising isn’t just about selling more locations, but it’s about building an entirely new business model on top of your existing one. You discover that franchising isn’t just “copy and paste.” It’s building a whole new business model. And it’s heavier than you thought.
Stage 3: The Franchise Freeze
Momentum stalls, doubts rise, and you wonder if you can survive the grind.
Franchisors in Freeze say things like:
“Our first franchisees are struggling, and I don’t know how to help.”
“I’m burning cash and I don’t know how long I can keep this up.”
“Maybe we shouldn’t have franchised at all.”
I’ll never forget year seven. We were almost bankrupt because our royalties weren’t enough to cover the infrastructure we needed. Franchisees required more support than we had money to pay people for. We went through painful mutual terminations. On top of that, a lawsuit in our industry with the Department of Labor forced us to rethink our model. Almost 20 franchisees brought in attorneys and started conversations with corporate about changes.
It was brutal. This is where so many franchisors give up. But it’s also where resilience is forged. The Freeze teaches you what your system is really made of. This is the hardest stage. Many brands get stuck here. But the Freeze isn't a failure, it’s a crossroads. With the right help, you can move forward.
Stage 4: The System Shift
You find your rhythm. Systems, support, and success stories bring renewed optimism.
The language changes:
“We finally have a training program that actually works.”
“Our first franchisees are profitable and this changes everything.”
“I don’t have to do everything myself anymore! I have a team now.”
After the Freeze came the breakthrough. We started to see franchisees succeed in big ways: buying second homes, building pools, taking extravagant vacations. Their wins became our validation.
We also invested in growth:
National PR that put us in major news outlets.
An advisory board to guide us.
Key executive hires to carry the weight.
A clear vision for where we were headed.
The System Shift is exhilarating, but fragile. You can still slip back into the Freeze if you aren’t intentional about strategy and leadership.
Stage 5: The Brand Build
You’ve built something bigger than yourself, now the brand, not just the founder, carries the vision.
At this stage, franchisors say:
“Our franchisees are thriving and they’re our best recruiters.”
“We’re building something that will outlast me.”
“The brand is bigger than any one person now.”
This was the legacy stage. We implemented EOS to bring discipline and clarity. We hired a president to lead day-to-day operations. We began getting approached by private equity groups and other potential acquirers.
The Brand Build is when you finally see the brand stand on its own. It’s no longer dependent on one founder’s energy, rather it’s a sustainable, scalable system with a life of its own.
The Big Lesson
The Franchisor’s Five isn’t just a framework, it’s a reality check. You don’t “graduate” from one stage forever. As I mentioned before, even in System Shift, you can slide back into the Freeze if you don’t lead strategically.
But here’s what I want you to know: every stage is survivable. Every low is a setup for the next high. And the journey from Spark to Legacy is worth it. The point isn’t to avoid the rollercoaster. The point is to ride it well.
Why This Matters for You
If you’re in the Freeze, you’re not broken. You’re just in the toughest, most common stage. If you’re in the Spark, enjoy it, but prepare for the weight ahead. If you’re in the Build, protect your culture fiercely.
This is exactly why I created Scale Secrets™, to help franchisors know where they are, anticipate what’s next, and put the right systems and mindset in place to keep moving forward.
Because scaling smart isn’t about skipping the hard stages, it’s about navigating them with wisdom and resilience.
If you’re ready to climb out of the Freeze and into the Build, Scale Secrets™ will give you the tools and support to get there. Let’s make sure you don’t just survive the rollercoaster, you thrive on it.
Shine Lesson Learned:
Every stage of franchising has its own challenges, but the biggest trap is thinking where you are now is where you’ll always be. The highs don’t last forever, but neither do the lows. If you can name the stage you’re in, you can lead with perspective instead of panic, and that clarity is what keeps you moving forward.
If you’re navigating the rollercoaster of franchising and want the right tools and perspective to keep moving forward, I’d love to connect. Let’s schedule a Clarity Call and talk about where you are in the journey, and how to get to the next stage with confidence.
Shine On, Shannon
