The Responsible Franchising Movement: Where It Stands Today and Why It Matters More Than Ever

A year and a half ago, I spoke out about the need for responsible franchising. Since then, the movement has sparked a lot of emotions. Some franchisors and franchise professionals have expressed frustration, saying, “We’ve been doing this the right way for years, why is this a topic now?” Meanwhile, some bad actors continue to misuse the term “responsible franchising,” all while their actions undermine its true meaning. And this is where the conversation gets tough.

There’s a reason this movement has caused controversy: It’s shining a light on the parts of our industry that need fixing. But for the sake of franchising's future, we need to keep having these discussions, even if it makes some of us uncomfortable. As a franchisor, my duty is to my team, my investors, and—most importantly—my franchisees. I want to create a dialogue about what responsible franchising really means and how it can help us all grow stronger.

1. What Has Changed (and What Hasn’t) Over the Past Year

Unfortunately, the industry hasn’t changed as much as it should. Franchising is still plagued by companies that make unrealistic promises of “semi-absentee” ownership and push people into starting businesses with unrealistic expectations. Emerging brands are entering the market with inadequate capital, franchise incubation companies are selling dreams to people who want to franchise their business without telling them how much capital it will be, and franchise sales organizations (FSOs) and brokers are getting blamed for all of it.

Let me be clear: The problem isn’t just with the brokers and FSOs. Yes, selling franchises to the wrong people is wrong. Yes, misleading franchisees into thinking they can make millions without ever stepping foot in their business is a major issue. But ultimately, at the end of the day, the franchisor approves these franchisees. It’s not the act of using a franchise broker that’s inherently flawed, it’s the lying and deception behind some of these sales practices. And let’s not forget how the cycle perpetuates: Some struggling franchises get snapped up by vulture private equity companies without fixing the root issues.

2. The Rolling Suds Approach: Evolving to Do the Right Thing

Rolling Suds is not perfect. But we’re committed to learning and evolving as we grow. Over the past year, we’ve doubled down on our commitment to the core tenets of responsible franchising.

Setting Clear Expectations: We’ve raised the bar on our vetting process. If prospective franchisees aren’t ready to put in the work of building relationships and drumming up business in their communities, we turn them down. We don’t move forward past the first call. If we sense they’re expecting that they don’t have to put blood, sweat, and tears into building the business, we move on quickly. This is not “set it and forget it” passive franchise ownership. Our franchisees understand that we’re here to provide resources, not run their businesses for them.

Capital Adequacy: Due to the commercial focus of our business, we’ve become even more clear about the capital required. For franchisees focusing solely on commercial work, we stress that they need more cash on hand to float payroll while waiting on invoices to be paid. If they don’t have the capital needed to sustain their operations, they can’t succeed—and neither can we.

Choosing the Right Franchisees: We target high-level operators who are comfortable being uncomfortable, have a proven track record in dealing with complex situations, and have proven they have the grit to get through tough times. By carefully selecting people who align with our values and have the right mindset, we’re creating a community of franchisees who are thriving. And because of these changes, our network is now giving more estimates than ever before, securing annual contracts so large that even I didn’t think they were possible.

Sustainable Growth: We’ve restructured our marketing approach and slowed down the onboarding process to ensure we have the infrastructure to support a massive fourth quarter. Last quarter, we awarded 35 territories, and that is not because we’re rushing (in fact, we slowed franchise sales for a couple of months as we built a sales team), but we are ready now because we’ve spent the time building a solid foundation. Bringing in industry legends like JT Thiessen and Madeleine Zook to oversee our franchise development and marketing departments has been a game-changer. This level of support ensures our franchisees are set up for success from the get-go.

3. Leading by Example: My Journey Over the Past Year

One year ago, I was a different CEO. The demands of this business required me to evolve and adapt constantly. I now spend all my time working on the business rather than in it, focusing on creating content that helps us grow, educating our network, and supporting my executive team to support our franchisees.

There are only two ways to grow a business: get more customers or make your customers worth more. My team and I are obsessed with helping our franchisees do both. We understand that their success drives our success, and ultimately, it’s their royalties that make our business larger. The long-term success of Rolling Suds hinges on the long-term success of our franchisees. That’s the core of responsible franchising.

4. What Needs to Happen Next

I believe that, as an industry, we need to stop pointing fingers. The path forward isn’t about placing blame but about creating standards that protect franchisors and franchisees alike. The how matters just as much as the what. We need:

• Clear Policies: It’s time to sit down as an industry and define what’s acceptable and what’s not. For example, should franchisors without any prior experience in franchising entertain part-time franchisees and award franchise territories using financials from a business that took full-time effort to get started? Probably not. These types of discussions can lead to actionable policies that set clear guidelines.
• Industry-Wide Training: Let’s create meaningful training programs accessible to anyone involved in the franchise industry – franchisors, franchisees, brokers, and suppliers. This education will ensure people know what they’re getting into before venturing into our industry.
• Accountability Groups: We should build a culture of “if you see something, say something.” Addressing concerns directly and privately with organizations can lead to change. It’s about holding each other accountable in a way that builds trust, not tears down our industry.

For my part, I will continue to do my best to lead by example. I’ll build Rolling Suds into the best brand it can be, sharing our successes and challenges openly. I don’t believe franchisors should hide in the shadows. We need to be upfront, public, and vulnerable. That’s how we build trust and move the responsible franchising movement forward.

The Path Forward

The responsible franchising movement is about raising standards, building trust, and evolving as an industry. It’s about all of us, franchisors, franchisees, brokers, and stakeholders working together to create an industry we can be proud of in 20 years. At Rolling Suds, we are living this philosophy every day, and I plan to continue championing it for the rest of my life.

So, let’s come together and focus on making franchising better. For those who criticize responsible franchising, I challenge you to look closer and ask yourself why. Responsible franchising is about building sustainable, thriving businesses that elevate the entire industry.