How to Successfully Run 20+ Franchise Locations: A Proven System Behind Flexible Ownership
Franchise ownership can be incredibly appealing, especially when the term flexible ownership is thrown around. Who wouldn’t want to keep their full-time job, while also owning a cash-flowing business that someone else manages? It’s a dream for many, but it’s not always as simple as it sounds.
In this post, we’ll dive into the flexible ownership model and explain how Ryan, a franchisee with over 20 years of experience across multiple brands, built a system to run 20+ franchise locations with minimal hands-on time. He shares his journey from being a first-time business owner to running a network of franchises with just a few hours of oversight each month.
What Is Flexible Ownership?
Flexible ownership, also referred to as manager-led or executive ownership, is the idea that you can own a franchise that’s operated by someone else while you contribute only part-time hours. It’s a concept that’s growing in popularity, but not all franchise brands are suitable for this model.
Ryan makes it clear that the success of flexible ownership doesn’t come down to the franchise itself—it’s all about the person managing the business.
“The franchise business doesn't determine if it can be run flexibly—the manager does,” he says.
Ryan's Journey: From Owner-Operator to Flexible Ownership Franchisee
When Ryan first entered the world of franchising, he planned to be an owner-operator. He purchased three Anytime Fitness locations and dove into entrepreneurship with enthusiasm. However, life had other plans—his former boss offered him a partnership opportunity that required him to step back from day-to-day operations. This unexpected twist pushed him into the flexible ownership model sooner than expected.
By hiring a profit-sharing manager to handle daily operations, Ryan was able to step away and focus solely on high-level business strategy. Once his systems were in place, he spent about an hour a month reviewing financials and checking in with his manager. This system eventually grew to four profitable locations and solidified his belief in flexible ownership.
But Ryan also experienced the downside. After selling two of his locations, he didn’t properly train the new managers for the remaining ones—leading to declines in membership, sales, and profits. That failure taught him a valuable lesson: the system only works if you find the right leader.
Finding the Right Person: The "STIC" Manager
According to Ryan, the key to running a successful flexible ownership franchise comes down to one thing: the right manager. He uses the acronym STIC to define the ideal candidate:
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S: Someone who has the skills to run the business
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T: Someone you trust
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I: Someone you can incentivize effectively
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C: Someone who has the capacity to take on the responsibility
Ryan emphasizes the value of recruiting people you’ve worked with before—people you know well and trust. He also highlights the importance of incentives:
“Don’t be greedy,” Ryan advises. “Offer competitive compensation, a profit-sharing plan, and long-term incentives to keep your manager invested.”
A great manager will make the difference between a thriving or struggling franchise under flexible ownership.
Building a Communication System for Success
Beyond hiring the right person, Ryan’s success hinges on systems that support clear communication and accountability. Here are the five strategies he uses to keep his businesses running smoothly—even from a distance:
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Daily Huddle: Team meetings to review the prior day’s performance, share best practices, and resolve challenges. While Ryan doesn’t attend these meetings, his managers lead them using performance trackers.
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End-of-Day Report: Ryan receives a daily email that includes key business metrics such as signups, sales, and missed opportunities.
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Customer & Employee Pulse: He uses Net Promoter Score (NPS) to measure customer satisfaction and 15Five to track employee morale—giving him a pulse on the overall health of the business.
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Monthly Reports: Managers complete a report outlining what went well, what didn’t, and their goals for the next month. These are reviewed during scheduled check-ins.
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Breakfast Meetings: Depending on performance, Ryan meets with his managers monthly or quarterly to review financials, NPS, and growth opportunities in a relaxed setting.
The Long-Term Incentive: Retaining Great Managers
One of Ryan’s biggest takeaways is that compensation alone isn’t enough to retain top talent. Over time, managers may realize they’re doing most of the work while the owner takes the larger share of profits.
To address this, Ryan offers long-term incentives like profit-sharing or vesting schedules. In some cases, he even grants equity to managers, aligning their success directly with the business’s success.
“I prefer avoiding the complexity of vesting and just find someone who has real equity in the business,” he says.
He’s learned that equity helps reduce turnover and encourages managers to treat the business like their own.
The Takeaway
Running a franchise with a flexible ownership model takes more than just choosing the right brand. It’s about recruiting the right manager and putting the right systems in place to support them.
Ryan’s proven approach—developed over two decades and more than 20 locations—shows that you can own and operate franchise businesses with minimal time commitment. But it only works if you recruit a STIC manager and equip them with the tools to succeed.
If you’re considering flexible franchise ownership, start by asking yourself the most important question:
Who’s going to manage this business for me?
