Article by Laura Darrell, Author of The Principles of Franchisee Success
For decades, franchising has been powered by a simple and largely effective idea: alignment through systems. Clear brand standards, clear operating rules, and clear financial expectations created consistency at scale. If everyone followed the playbook, growth followed.
And for a long time, that model worked.
Today, across franchise systems both large and small, something has shifted. It may not always show up immediately in unit-level performance or royalty reports, but it is unmistakable in conversations, delays in decision-making, and resistance to change. Trust, once assumed in the franchisor–franchisee relationship, has become conditional.
That shift is quietly redefining the future of franchising.
When Alignment Turns Into Friction
In working with multi-unit franchise organizations, I hear a familiar tension on both sides of the relationship.
Franchisees often describe feeling disconnected from decisions that directly affect their operations. They question whether corporate leaders fully understand local labor markets, real estate constraints, or the daily tradeoffs required to protect margins while maintaining brand standards.
Franchisors, on the other hand, express frustration with uneven execution, delayed adoption of new initiatives, and what feels like growing resistance to system-wide change. Many feel caught between protecting brand integrity and accommodating operators who increasingly push back.
The critical issue is not who is right.
The more consequential reality is that low trust slows everything down.
When trust erodes, franchisees hesitate to speak honestly. Franchisors hesitate to share the full context. Initiatives are rolled out defensively rather than collaboratively. Compliance replaces commitment.
In a business model that depends on speed, consistency, and shared ownership of outcomes, that friction is costly.
Why the Old Power Model Is No Longer Enough
Traditional franchising relied heavily on authority. The franchisor designed the system. The franchisee executed it. Oversight ensured compliance.
Today’s environment looks very different.
Many franchisees are sophisticated operators. They own multiple brands, analyze data closely, and compare franchisor behavior across systems. They are less willing to accept decisions that feel disconnected from operational reality.
At the same time, franchisors are navigating unprecedented complexity, including labor shortages, margin pressure, technology disruption, and rapidly shifting consumer expectations.
Control alone cannot manage that level of complexity.
What can, is trust paired with accountability.
Trust does not replace standards. It makes standards executable.
Trust Is Not Soft, It Is Operational
One of the most persistent misconceptions in franchising is that trust is a cultural or “soft” issue. In reality, trust is structural. It is built or broken by how decisions are made, how information flows, and how disagreement is handled.
Consider a common scenario.
A franchisor introduces a new labor model designed to improve productivity. On paper, the numbers make sense. The rollout happens quickly, with limited franchisee input. Operators struggle to implement the model in markets with different wage pressures or labor availability. Instead of surfacing concerns early, franchisees quietly modify the model to survive. Corporate sees inconsistent execution and tightens enforcement. Trust erodes further.
Now consider a higher-trust alternative.
In systems with stronger trust, franchisors often pilot changes with representative franchisees first. Feedback is gathered early, tradeoffs are discussed openly, and adjustments are made before full rollout. Franchisees may not love every change, but they understand the rationale and feel respected in the process. Adoption improves because ownership improves.
The difference is not leniency.
It is credibility.
How Franchisors Build Trust: Three Tactics That Matter
First, effective franchisors share the “why,” not just the rule. Franchisees are far more likely to support initiatives when they understand the operational or financial logic behind them. Explaining tradeoffs, constraints, and intended outcomes builds credibility, even when decisions are difficult.
Second, trust grows when franchisees are invited into the conversation before decisions harden. Advisory councils, pilot groups, and structured feedback loops signal partnership rather than control.
Third, high-trust systems hold corporate accountable as well. Clear expectations for training, field support, responsiveness, and follow-through demonstrate that accountability flows in both directions.
How Franchisees Build Trust: The Other Half of the Equation
Trust is not solely the franchisor’s responsibility. Strong systems also require franchisees who act as stewards of the brand, not just operators of a unit.
Franchisees build trust by raising issues early and directly. Quiet resistance damages credibility, while transparent communication creates the opportunity for real problem-solving before issues escalate.
They also earn trust by separating preference from principle. Not every frustration reflects a flaw in the system. Franchisees who distinguish between personal preference and true operational risk gain influence over time.
Finally, trust is reinforced through disciplined execution once alignment is reached. Healthy debate belongs before decisions are made. Afterward, consistent execution builds confidence and strengthens the partnership.
Trust as a Competitive Advantage
The most effective franchise systems understand that trust changes behavior. When trust is present, franchisees voluntarily share best practices, flag risks early, and think long-term about brand health rather than short-term wins.
This transforms franchisees into informal leaders. They mentor newer operators, pilot innovation, and act as ambassadors for the brand.
In a crowded franchise marketplace, systems known for trust attract stronger operators. They retain them longer. And they adapt faster under pressure.
The Future of Franchising
The future of franchising will not be defined by who has the tightest controls or the thickest operations manual. It will be defined by who can move quickly, align intelligently, and maintain credibility under strain.
That requires a shift in leadership mindset.
You cannot mandate commitment.
You have to earn it.
Franchising has always been a partnership. But a partnership without trust is just a contract.
The systems that recognize this and are designed for it will not only grow faster. They will build brands that last.
Author Bio
Laura Darrell is a leadership advisor, speaker, and author specializing in franchising, hospitality, and multi-unit organizations. With more than 25 years of experience working alongside franchisees and franchisors, she focuses on trust, leadership credibility, and execution in complex systems. Laura is the author of The Great Resignation and is currently completing a Doctor of Executive Leadership, researching trust as a strategic capability in modern organizations.
