The mistake most new franchise leaders make (and how to avoid it)

Let’s say you've got 100+ franchisees, each with a million ideas about what you should fix first. 

They're all convinced their ideas are the best (because they usually are - for their specific situation).

How do you listen to everyone without drowning in opinions?

I recently spoke with Heather Neary, CEO of Taco John's, who spent her first 6-9 months doing exactly what every smart franchise leader should do: 

She went on a “listening tour.” 

This wasn't just casual conversations with a few franchisees. 

She spent months systematically talking to franchisees, employees, board members, and stakeholders to truly understand what was happening in the business before changing anything. 

Her goal was to identify patterns, uncover what was working, and find the gaps between what the brand was delivering and what franchisees needed to be profitable. 

Here's how she did it:

Step 1: Cast a Wide Net 

Heather didn't just talk to the loudest voices or the biggest operators. She interviewed franchisees, board members, corporate staff, and even the original owners who were still involved. She spent time in restaurants, asked questions, and took notes.

She also ran two formal surveys: an employee engagement survey and a franchise business review survey. The results confirmed what she was hearing anecdotally.

Step 2: Look for Patterns 

After 5-8 months of those conversations, themes started emerging. Multiple franchisees mentioned the same issues.

They were making taco shells fresh daily, pico de gallo fresh daily, grounding beef fresh in many locations. But customers had no idea. 

The brand had a great story - Western heritage, cowboy roots, quality ingredients - but they weren’t telling it well enough.

Step 3: Prioritize Ruthlessly 

This is where most leaders fail. They try to implement everything.

Heather's approach was transparent and realistic. She acknowledged hearing about 100 different things that needed attention, explained that she had to prioritize based on available resources (both human and financial), and then clearly communicated why she chose the top 10 things to implement first.

Training became the top priority. Capital requirements got paused until they could better communicate the "what's in it for me" to franchisees.

Step 4: Create Communication Loops 

The initial listening tour is just the beginning. You need ongoing systems:

• Quarterly town halls for all franchisees

• Monthly open office hours where any franchisee can join a Zoom call and ask questions

• Regular franchise association meetings (3-4 times per year for 2-3 day sessions)

Heather told me she talked to a franchisee that morning who called with a question. It turned into a 25-minute conversation that went well beyond the original topic and and uncovered insights she wouldn't have discovered otherwise.

Most leaders think that a listening tour like this is about collecting complaints. 

It's not. It's about understanding the passion points, identifying what's working that you should double down on, and finding the gaps between what you're delivering and what franchisees need to be profitable.

Your 90-Day Action Plan

If you're taking over a franchise system:

1. Schedule one-on-one conversations with 20+ franchisees across different markets and performance levels

2. Send formal surveys to both franchisees and employees

3. Spend time in actual locations during different dayparts

4. Document everything and look for recurring themes

5. Present your findings and priorities back to the system with clear reasoning

Franchisees don't expect you to implement every idea. 

They expect you to listen, understand their business challenges, and make thoughtful decisions that help them be more profitable.

Until next week,

Erik

PS: Want to see how other franchise leaders handle these conversations with their franchisees? Join our private Facebook group where CEOs and founders share real stories about what works (and what doesn't) when managing franchise relationships. It's like getting your own listening tour insights from hundreds of experienced operators.