Many corporate executives are prone to encounter obstacles about how their prior experience translates to franchise ownership success. There’s a delicate balance between leveraging valuable corporate business skills and recognizing the unique demands of leading a franchise operation—a balance that even the most accomplished leaders can struggle with at first.
I recently visited with a client whom I’m very fond of who just went through this learning journey. Their story beautifully demonstrates the frustrations and challenges new franchise owners coming from corporate executive careers sometimes experience. However, with the proper mindset shift and the changes that needed to be made, they are now positive and excited about the momentum and growth in their business.
I share their story here with the hope of it being instructive and encouraging for other corporate leaders yearning to enjoy the benefits of entrepreneurship and exploring their opportunities to do so in franchising.
Starting with Purpose
Chris and Catherine Keith, a successful corporate couple—both with impressive leadership credentials- acquired a Waxing the City multi-unit franchise agreement nearly two years ago. Their motivations mirrored many executives’ yearnings: escaping corporate volatility, building generational wealth, and creating sustainable retirement income.
Their transition plan seemed logical. Catherine, an accomplished team leader, stepped away from her corporate role to manage their new business. With decades of leadership experience between them, what could go wrong?
The Unexpected Struggle
Six months in, they faced a sobering reality: the business was underperforming, and Catherine felt trapped. “She felt like she bought herself a job that she didn’t like,” Chris reflected.
Despite their corporate success, they discovered a fundamental truth: leading a personal care service business requires a different approach than managing corporate teams. “We were not executing on the franchise playbook the way we should have,” they acknowledged. The strategies that earned them promotions in corporate America weren’t working in their franchise. The mounting challenges led them to question their entire investment.
Finding the Sweet Spot
Their breakthrough came when Catherine hired and replaced herself with Stefanie, who brought ten years of management experience in a similar industry to their business.
Hiring Stefanie as their area manager—despite the additional payroll expense—transformed their business. “Things are definitely heading in a good direction for the last six months, and we are excited and motivated,” they shared.
The revelation wasn’t simply about delegating—it was about recognizing that industry-specific expertise was critical to relating to the staff. Stefanie understood the unique dynamics of personal care service employees in ways the owners couldn’t, regardless of their prior leadership success.
The Leadership Balancing Act
What made Stefanie effective wasn’t just industry knowledge but her management approach. “A big difference in her management style is she does not treat anybody special,” they noted. This highlighted a critical misstep the Keiths had made: “We were catering too much to a key employee who was critical to our revenue, and did not realize how much that was negatively impacting the other team members.”
Stefanie implemented clear, consistent expectations—exactly what the team needed. “They want to be treated the same; they want clear expectations and to be held accountable,” they observed.
Another element of Stefanie’s impact is her ability to drive accountability with the employees, which is just as important, if not more so, than treating everyone equally. “Where Catherine and I went in expecting accountability similar to what you would see in an executive corporate job, that is just not the reality. Stefanie’s real secret sauce is her ability to communicate regarding accountability to these employees who require a totally different approach than the employees you find in high-level corporate roles.”
The Owner’s True Role
With Stefanie handling day-to-day hiring, scheduling, team member 1-on-1s, Chris discovered his optimal role: “I get to spend time on higher impact activities that I am good at, such as financial oversight, operations, and procedure building and documentation. I’m getting more involved in marketing and growth initiatives.”
This recalibration allowed them to leverage their corporate skills appropriately while acknowledging the limitations of their experience. Their business metrics improved across all key performance indicators—rebookings, referrals, and revenue per ticket.
The Reality of Owner Involvement
The franchise industry presents varied messages about owner involvement. Some opportunities are marketed as “semi-absentee” or “executive models,” while others emphasize hands-on management. Neither extreme tells the complete story.
All new businesses require “active” involvement from the franchisee. The notion of a low-time-commitment franchise is largely a myth, particularly for first-time business owners. The key distinction lies not just in how many hours you commit, but in what capacity you serve during those hours.
Overly involved owners often impede their success by micromanaging and disempowering employees. Yet completely delegating all responsibilities creates an equally problematic vacuum. Successful franchisees find balance by maintaining oversight of strategic direction, growth initiatives, and team development while empowering qualified staff to execute daily operations. Success requires ensuring the right people are in the right roles, with clear expectations, appropriate rewards, and the autonomy to succeed.
Key Takeaways for Corporate Executives
- Expect a learning curve: Enter franchise ownership with humility, recognizing that even in areas where you’ve excelled in corporate settings, you’ll need to relearn and adapt your skills to a new environment. This is part of the different experience you were seeking by leaving corporate America.
- Value industry-specific expertise: Recognize early that knowledge of your specific franchise industry—whether it’s personal care, business services, or home repair—is critical and may not be immediately acquired, even by the most capable corporate leaders.
- Invest in proper management: Be willing to allocate resources for qualified management with relevant industry experience, rather than attempting to save on payroll by handling these responsibilities yourself. An added benefit to building your team early is you are better poised for growth and building value in your business faster.
- Find your optimal role: Focus your efforts on areas where your corporate background truly adds value—often strategic initiatives, culture creation, and business growth—rather than day-to-day operational tasks.
- Embrace the transition: Acknowledge that you wanted something different from corporate America, and that includes adjusting to new leadership challenges and interpersonal dynamics unique to your franchise industry. Look at this in a positive light; through these new experiences, you are expanding your toolbox of skills that will only serve you well in this and other future endeavors.
