By Tereza Murray, Leading Franchise & Business Consultant and CEO of Tereza Murray Franchising (TMF)
In 2025, franchising is still one of the most effective business models for those looking to grow. While not for everyone, the franchise model does enable entrepreneurs to scale their business efficiently, while providing franchisees the opportunity to operate with a system that’s been tried and tested.
Having worked with business owners across Australia and New Zealand to help turn their success into long term sustainability, I’ve seen what works and what doesn’t when it comes to franchising. My own experience in running both franchised and independent companies has helped me understand the fears, pain points and strategic solutions for those looking to franchise and grow.
What makes a successful franchise?
Not every entrepreneur who franchises has ambitions of market domination – most of the businesses I work with simply want to meet their increasing demand or expand to new locations without the challenges and logistics of managing remote teams.
One of the benefits of franchising is the ability for business owners to partner with invested individuals who share their vision for the brand. The flexibility of the model allows franchisors to open just a couple of new locations to meet existing demand or scale significantly to expand their footprint and grow market share, depending on their business goals.
However, for the model to be successful, both objectives still require franchisors to implement the right strategies and provide adequate support for franchisees. Rapid expansion should be approached with caution, and the most successful franchise networks know that prioritising quality over quantity is essential.
A successful franchise sets realistic growth targets and ensures that each location is strategically placed with ongoing support and mentorship. Before expanding into new areas, a strong foundation, including thorough market research and financial modelling, should not be overlooked.
Fundamentals for long-term growth
You don’t need to have been running your business for a long time when thinking about franchising, but there are a few key factors to assess your readiness that need to be considered before taking the next step.
The first question to ask is whether there is consistent demand for the product or service. Regardless of location, having a steady stream of customers is needed for long-term viability. Factors such as seasonality, economic trends, or shifting consumer preferences can impact demand, and franchisees need confidence that they’re investing in a business model with real market potential.
Outside of demand, assessing whether the business or financial modelling demonstrates consistent profitability is crucial. Strong profit margins provide confidence for both the franchisor and future franchisees that the model is sustainable. Franchising shouldn’t be seen as a solution if the business is barely breaking even, as it will only multiply inefficiencies.
Mistakes to avoid
Even still, having a strong brand or proven operational system doesn’t automatically guarantee that a franchise will be a success. Franchisors also need to ensure they have a thorough and rigorous recruitment process that ensures potential franchisees are financially capable, while also being aligned with the brand’s vision and values. Failing to properly assess whether a candidate is suitable can result in wasted time, resources and finances.
But selecting the right franchisee is only one piece of the puzzle. Providing ongoing support and training shouldn’t be overlooked. Without consistent operational guidance and marketing support from above, franchisees may struggle to maintain passion and profitability.
I’ve seen this time and time again with larger franchise brands that have evolved into ‘franchise businesses’, rather than companies that are focused on delivering great service or a much-needed product. When this happens, the primary business becomes about selling franchises, which isn’t what the model was developed for.
The importance of strong leadership
Successful franchise networks provide hands on support, foster collaboration and value strong relationships between franchisors and franchisees. Franchising shouldn’t be seen as a ‘set and forget’ growth model and thrives on strong financial oversight and proactive intervention.
This might include operational guidance, regular individual and network check-ins and constructive feedback loops. Strong leadership is the key to ensuring franchisees feel supported and engaged, ultimately resulting in a sustainable and profitable business.
The franchise model continues to hold strong
Franchising isn’t just about replicating a profitable business; it’s about creating a structure that attracts the right franchisees, fosters collaboration, and sets the foundation for long-term growth.
The best franchise leaders actively seek feedback from franchisees and customers to help in identifying opportunities for refinement, and those that embrace technology and adapt to market trends can implement changes to keep locations competitive and resilient.
While franchising isn’t the right fit for all businesses, it can be a game changer for those who have proven systems and are committed to providing the right support for franchisees. By understanding the fundamentals for long-term growth and knowing the role being a strong leader plays in the success of franchise locations, entrepreneurs will continue to build profitable and sustainable franchise networks.
ABOUT TEREZA MURRAY
Tereza Murray is a leading Franchise and Business Consultant with over 20 years of experience in the franchising industry as both a consultant and franchisor, along with a track record of success running some of Australia and New Zealand’s most well-known brands (franchised and independent). With a background spanning over 30 years in business development across B2B and B2C, Tereza works with businesses ranging from start-ups to established companies ready for serious growth.