In the latest episode of Emerging Franchise Brands, host Frank Fiume interviews Mike Harley, founder of Franchisor Advisor, who has spent decades in the franchise industry—from launching and scaling brands to guiding emerging franchisors through the complexities of growth.
Mike’s journey into franchising began in the car rental industry, where he navigated major challenges, including the aftermath of 9/11 and franchisee retention issues. Through hands-on leadership, strategic planning, and a focus on franchisee success, he turned struggling operations into thriving businesses. Today, he helps emerging franchisors avoid costly mistakes and build sustainable growth strategies.
Why Do Franchisors Struggle?
According to Mike, many franchisors start their journey without fully understanding what they’re getting into. They focus on selling franchises rather than building a scalable system. Some of the most common mistakes include:
✔️ Lack of a structured business plan – Many founders jump into franchising without a clear roadmap.
✔️ Undervaluing franchisee support – A franchisor’s success is directly tied to franchisee performance.
✔️ Not vetting franchisees properly – Awarding franchises to friends, family, or enthusiastic buyers without assessing their business acumen often leads to long-term struggles.
✔️ Cash flow issues – Many emerging brands underestimate the capital needed for growth and franchisee support.
The Key to Success: Communication & Structure
Mike emphasizes that communication is everything in franchising. Franchisees need guidance, mentorship, and a clear understanding of how to succeed. He also highlights the importance of structured systems, comparing business growth to building a house—without a strong foundation, everything falls apart.
Should You Franchise Internationally?
Many brands get excited about international expansion but fail to consider the challenges. Mike warns against expanding abroad simply because an interested buyer reaches out. Instead, franchisors should develop a clear international strategy that accounts for cultural differences, regulations, and support systems.
Final Takeaway
For anyone considering franchising, whether as a franchisor or a franchisee, Mike’s advice is simple: Do your homework, have a solid plan, and be ready to support your franchisees at every step.
Looking for expert guidance in franchising? Connect with Mike Harley at FranchisorAdvisor.com or text him at 813-500-9840.
April 28, 2025
