What I wish I knew before becoming a franchise owner
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When I first walked into Drybar, business ownership was not on my mind. I was on a business trip and booked an appointment in minutes, then sat back for an effortless blowout experience. It blew me away – pun intended. I left the shop feeling like my best self when the thought hit me: Why don’t we have this in Indianapolis?
That visit sparked an idea, but it was my entrepreneurial spirit that turned it into reality. When I got back to my 60-hour-plus workweek in Indy, the thought of working for myself consumed me. If I can work this hard for someone else, why can’t I do it for myself?
Now, seven years later, I own three locations in Central Indiana. The journey has not been without its challenges, like signing a lease on my second location a month before the start of the COVID-19 pandemic. Notably, resilience has been one of the most important aspects of owning a business.
That resilience has also shaped my perspective on franchise ownership in particular. While investing in a franchise might seem like a foolproof plan, not all brands are created equal. Success depends on more than just paying a fee and following an established playbook. Before signing on the dotted line, consider the following.
Assess the business
When evaluating a franchise opportunity, it is critical to see how the company is (or is not) vetting you. A good sign of strong corporate leadership is a thorough screening process, including in-depth interviews, operational capability assessments, discussions on strategic business goals, and, perhaps most importantly, ensuring alignment on values and expectations. If a franchisor is selective, it points to the prioritization of your long-term success rather than their licensed revenue.
To know if a brand is the right fit for your leadership style and goals, visit existing locations, talk to other franchise owners, and ask plenty of questions. Does the company actively invest in its franchisees? Is there ongoing training and support? Are other owners satisfied with their experience? Overall, be diligent in your research and look for a brand that works for you.
Cost is another major consideration for those interested in franchise ownership. Despite the good intentions of looking for low up-front expenses, it can be riskier to go with a seemingly low price point for the sake of cost efficiency. In fact, data shows that franchises with lower initial investment have a higher failure rate.
An effective franchise system takes more than a competitive buy-in price – it should provide the infrastructure, resources, and leadership support necessary for sustained success. The franchisor is the keeper of your brand, especially those that are under 20 years old. As you invest time and effort into
building your business, it is essential to have a franchisor that is equally committed to supporting your success and the overall brand.
Consider the market
Even the most mature and recognized franchise models will not thrive in an unfit market. When analyzing the potential prosperity of a business, it is equally important to consider the local economic landscape and consumer demand. The Indianapolis market, for example, is competitive, but it’s also tightly knit and expanding, which offers opportunities for entrepreneurs committed to customer experience. Ranking second on Zillow’s 2025 Hottest Housing Markets list, Indianapolis is growing into a nationally recognized hosting epicenter and new business hub, with the metro area leading Midwestern cities in GDP growth.
As a whole, the Hoosier state saw an influx of new residents in 2024, up 8% from the previous year to break a decade-long streak of more people moving out than in. Indiana was also named by Forbes as the second-best state to start a business, underscoring the increasing interest and development in the area.
Of course, an increase in franchise locations combined with an increase in consumers could lead to a possible oversaturation of new businesses in the market.
When my first shop opened in 2018, it was the first of its kind in the market. Today, there are competing brands and service offerings at new and existing salons – something to consider as an indicator of increased demand. Competition has and will always exist, but a distinctive brand, local impact, and customer-focused experiences set a business apart and drive lasting loyalty.
For retail and service-based businesses and beyond, customer relationships are a key performance indicator. Eighty-eight percent of consumers find that good customer service makes them likely to become repeat patrons. Franchisees may operate under an established brand, but it is up to you to make it your own. A unique brand identity that resonates with the target audience is essential for standing out in a local market.
Bet on yourself
No matter how strong the brand or how promising the market, the true driver of success in franchise ownership is you. Even with a standardized business plan in place, many aspects of a franchise are customizable such as local community engagement and staff culture, and have a huge impact on longevity.
There are a great deal of benefits with a successful franchise. On average, franchise businesses report sales nearly twice as large as non-franchise businesses, and the flexibility and freedom that my franchise ownership has allowed me is immeasurable. Plus, franchising opens up a path to entrepreneurship for everyone, especially women and people of color. Two out of every five female franchise owners report that they would not own a business if they were not franchisees.
However, this is not passive income. It is a big investment of time, energy, and commitment on the good days and the bad. You will be the one at the helm, making decisions on and off the clock. Know that there will be many lessons to learn and mistakes to be made, but if you are willing to put in the work and continuously adapt, franchise ownership can be an incredibly rewarding path.