Franchising: testing the business without its founder

A successful outlet does not, on its own, prove that its business model can be transferred to an independent operator. Often, the founder quietly fills gaps: remembering orders, resolving complaints and maintaining personal relationships with customers. Before expanding through franchising, run a pilot to find out what happens when that day-to-day intervention stops.

1. Define exactly what the trial needs to prove

A pilot is not a showcase for the best possible results. It is a test of whether another team can implement the model using the training, tools and support you will actually provide to a franchisee.

Start by framing the question: ‘Can a trained manager run this outlet without constantly relying on my personal judgement?’ Then set out in writing:

• Which decisions the pilot manager will be responsible for.
• Which services the central team will provide, and through what process.
• When the founder may intervene for safety, legal compliance or a serious operational problem.
• Which results will be considered acceptable, and which will require a repeat trial.

You can start in your existing outlet by handing day-to-day management over to a suitably trained manager. This tests the business’s dependence on you, but does not automatically test demand in another area. If your expansion plans depend on a different location or customer base, that assumption will need additional testing.

Choose a duration that covers meaningful variations in operations: busy days, deliveries, shift planning and staff absences. A quiet week can conceal the real weaknesses.

2. Remove the founder’s hidden support

The most common mistake is for the founder to step away from the till but continue managing the business by phone. That merely proves they can work remotely.

Give the team the instructions and resources that a new franchisee would have. Establish a designated point of contact and keep a support log. For each request, record the problem, the time taken to resolve it, who responded and whether the answer was already available in the guidance provided.

Also record every unplanned intervention you make, even if it seems insignificant. A personal call to a supplier that secures an urgent delivery may be an advantage that cannot easily be replicated at a new outlet.

Do not withhold necessary support simply to make the trial harder. The aim is to simulate the actual working relationship, not to leave the manager stranded. However, distinguish structured support from personally stepping in to solve every problem. The latter indicates that something still needs to be worked out.

3. Measure repeatability, not just turnover

Sales matter, but they are not enough. An outlet may maintain its turnover through overtime, exceptional discounts or constant help from head office. Before the trial, define a small set of metrics:

• Working hours by role, including time spent providing central support.
• Order errors, returns, complaints and recurring failures.
• Stock shortages, wastage and emergency purchases.
• Time taken to complete core tasks and consistency of service.
• The outlet’s financial performance once the true cost of management has been accounted for.

If the founder has been working without separate remuneration, include the cost of replacing that work in the trial. If you are considering future ongoing franchise fees, show them separately as a hypothetical cost, not as an actual historical expense.

Use a consistent basis for comparison and record changes to opening hours, prices, staffing or promotions. Otherwise, you will not know whether a difference is due to your absence or to other circumstances.

At the end, classify each problem: inadequate guidance, a training need, an unsuitable tool or a fundamental weakness in the model. Address the cause and repeat the relevant part of the trial.

4. Turn the findings into an evidence-based decision

Greece has no dedicated law providing a comprehensive framework for franchising, nor a specific statutory regime for mandatory pre-contractual disclosure comparable to those in some other countries. The general rules of the Greek Civil Code apply, including Articles 197–198 on good faith in negotiations and pre-contractual liability, alongside competition rules such as Law 3959/2011 and, where applicable, Article 101 of the Treaty on the Functioning of the European Union (TFEU).

A pilot is neither government certification nor a guarantee of success. When presenting its findings, clearly distinguish what was measured from what remains an assumption. Do not present the performance of a mature outlet with an established customer base as proof that a new outlet will immediately achieve the same results.

Reach a clear decision: proceed, repeat the trial after making improvements, or postpone expansion. Practical takeaway: before seeking franchisees, demonstrate that day-to-day operations depend on transferable processes rather than your constant presence.