Franchise Lessons from History: Real Brands, Real Warnings - and the 12 Silent Killers You Can’t Afford to Ignore
- jantimms3
- Apr 2
- 6 min read
1. Introduction: A Wake-Up Call for Franchisors
When Brent Dowling launched his new YouTube series with Episode 1: "How to Avoid a Bad Franchise Investment – Lessons from History," he wasn't just speaking to future franchisees. He was indirectly issuing a challenge to every franchisor watching.
The message? If your franchise system wouldn’t hold up under the same scrutiny Brent is now equipping franchise candidates to apply, you’ve got a problem. A big one.
Over the course of my 7-year PhD research study into franchising success factors, I uncovered what I now call the 12 Silent Killers of Franchising. These aren’t loud, dramatic implosions. They’re slow-burning failures, often invisible until the damage is done.
This new video series is a breath of fresh air in our sector, because it gives prospective franchisees the education they need to ask the right questions. But make no mistake: franchisors should be paying just as much attention.
2. Franchising Has Always Been About Systems
One of the most enlightening moments in the video was the mention of Harper’s, recognised as the first true American franchisor. Even back then, franchising was built on repeatable systems. That hasn’t changed.
What has changed is the number of franchise brands that still overlook this foundational truth. Today, Silent Killer #5: Lacking the discipline to follow systems, continues to silently sabotage growth. Great ideas fail when execution is inconsistent, accountability is weak, and shortcuts become the norm.
If Harper’s understood this in the 1800s, there’s no excuse for any franchisor not to have strong, scalable systems in place now.
3. Case Studies and the Silent Killers They Reveal
Quiznos & Krispy Kreme: When Vision Fails
These two brands provide powerful cautionary tales. Both chased aggressive growth but neglected the strategic foundations needed to sustain it. The result? Rapid rise. Then spectacular fall.
These brands exemplify:
At Quiznos, the growth strategy was built around stacking franchise units rapidly, often without the right support structure, operational control, or focus on long-term profitability for franchisees. Their pricing model placed franchisees in direct competition with corporate-owned stores, eroding trust and creating internal brand conflict. This is a textbook case of a weak or wrong unifying vision (#1), where expansion goals overrode the purpose of creating a sustainable, interdependent network.
Similarly, Krispy Kreme experienced a meteoric rise followed by a sharp decline. Franchisees were often pushed to open new stores rapidly, even when the markets weren’t ready. The company prioritised quick gains, including stock performance, over long-term strategy, a classic example of Silent Killer #9. As the novelty wore off and market saturation kicked in, profitability tanked. Krispy Kreme's leadership failed to apply the unifying vision litmus test (#10) to evaluate whether their growth decisions aligned with sustainable franchisee success.
When vision is unclear or misaligned, decision-making becomes reactive, and culture fractures under pressure. Without a strong unifying purpose, growth becomes a gamble, and these two brands show exactly how costly that gamble can be.
Mini’s Chicken: Expansion Without Readiness Mini’s Chicken is a classic example of Silent Killer #9 in action. A promising brand with plenty of buzz, but it expanded faster than its systems, processes, and support structure could handle. And like many before it, scale without sustainability ended in collapse. |
Anytime Fitness: A Masterclass in Alignment Anytime Fitness, by contrast, is a brilliant example of what it looks like when a franchisor gets it right. They’ve built a system designed to avoid all of the silent killers identified in my research: #1: Weak or wrong unifying vision #2: No appetite for crude oil exploration and refinement #3: Franchisor expertise holds back knowledge creation #4: Randomly eating the elephant without engaging and turning the engine cogs #5: Lacking the discipline to follow systems #6: Not understanding the unique interdependent nature of franchising #7: Harmful cultural conditions #8: Lack of rigour about having only bright stars onboard #9: Quick fix financial performance gains at the expense of long-term strategy #10: Not applying the unifying vision litmus test #11: Resting on the laurels of the past, or imaginary laurels #12: Great initiatives poorly implemented Their franchisee success-centric model, purpose-driven mission, and scalable systems show what’s possible when alignment exists from the top down. Their vision is: “to deliver better health to consumers, financial success to franchisees, and holistic growth development to employees. Their mission: To enrich the health, wealth, and wellbeing of franchisees, consumers, and employees through purpose-driven wellness franchises and services. |
This is a clear demonstration of how alignment between brand purpose and franchisee success can power sustainable growth. It’s not just branding; it’s the foundation for long-term strategy. Their messaging speaks directly to the outcomes they want for every stakeholder in the network, especially their franchisees, and it’s embedded in how they operate.
4. Why the 12 Silent Killers Are Still Relevant
These stories aren’t relics of the past. Every single Silent Killer I uncovered is alive and well in many modern networks today. They rarely announce themselves loudly, but they show up in underperformance, disengagement, and the inability to scale.
The most dangerous part? Most franchisors don’t realise they’re in play until it's too late.
The outstanding difference between the successful franchise systems involved in my research study and those in the lower performing range was identifying, controlling and to a large extent preventing the silent killers of franchising from causing harm and holding back success.
5. Brent’s 5 Lessons for Prospective Franchisees
Brent Dowling shares five key lessons in Episode 1 of his new video series, and they’re just as relevant for franchisors as they are for prospective franchisees:
Lesson 1: Successful franchises are built on strong systems Case Study: Harper’s Harper didn’t just develop a product, she created a system to turn people into successful business owners. The takeaway? When evaluating a franchise, prospective franchisees should ask current owners whether the brand truly empowers them with training, resources, and a proven model. |
Franchisors - how would your system stack up if your franchisees were asked this by a prospective franchisee?
Lesson 2: Not all fast-growing franchises are good investments Case Study: Mini’s Chicken Mini’s Chicken expanded at breakneck speed without the infrastructure to support it. If the brand you're evaluating is hyped and growing rapidly, ask: do they have a long-term plan? Are franchisees actually making money, or is the growth fuelled by aggressive franchise sales alone? |
Franchisors - if you're rapidly expanding, would your system pass this lesson test?
Lesson 3: Big franchise brands aren’t always best Case Study: Krispy Kreme Just because a brand is a national success doesn’t mean it’s risk-free. Brent encourages candidates to do thorough due diligence, especially with large, established brands. Speak to as many franchisees as possible to uncover the real story. |
Franchisors - how would your brand stand up to that level of scrutiny?
Lesson 4: Understand the fees you are paying to the franchisor Case Study: Quiznos Study the Franchise Disclosure Document (FDD), look at required fees and supplier agreements, and compare them to market prices. Even a 1–2% difference in fees can make or break unit profitability. |
Franchisors - how transparent and fair is your fee structure under this kind of financial lens?
Lesson 5: Look for franchise systems where owners reinvest and scale Case Study: Anytime Fitness Franchise systems that build real wealth often have one thing in common: their franchisees reinvest profits and open more locations. Multi-unit expansion from within is a major signal of health and high performance. |
Franchisors - are your current owners scaling because your brand truly supports their success?
So, franchisors, the question becomes:
Could your franchise brand pass these lesson tests?
6. What Franchisors Should Be Doing Right Now
Ask yourself:
Would your franchise system pass the lesson tests Brent just shared with the world?
Could you confidently say you’ve eliminated these silent killers from your network?
If not, it’s time to act. Franchise candidates are becoming more educated. They’re watching content like this. They’re asking tougher questions. And they’re choosing to walk away from systems that don’t feel solid.
Now is the time to get your ducks in line.
Take Action
Start by watching the full video: Watch on YouTube
Then, if you're curious which Silent Killers of Franchising might be quietly holding your network back, let’s talk https://calendly.com/jan-timms/coaching-session-clone
And/or join me for my next live webinar: FIVE Magic Fs LIVE - a dynamic session that dives into the evidence-based formula for eliminating Silent Killers and scaling franchisee success.
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