Case Study:
PeopleBest analytics predicts future franchisee’s revenue

Global leadership franchisor find PeopleBest’s human performance analytics platform critical to selecting only the most successful franchise prospects.

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A global franchising organization in the leadership development space has the goal of doubling their franchise business partners as quickly as possible.

A global franchising organization in the leadership development space has the goal of doubling their franchise business partners as quickly as possible. The franchisor has developed an extremely successful system that empowers franchisees to help business owners achieve strategic and operational success through their proven processes. The selection of high-quality franchise owners remains a top challenge for our client. The current selection process has produced inconsistent results with a success rate of less than 40%. This has resulted in many franchisees failing to recover their upfront franchise costs. 

The task of finding successful, 10X producing franchise owners can be quite challenging. The most successful franchisees need to be adept at acquiring clients, being masters at helping C-level professionals develop their vision and strategy and set into motion disciplined action steps to create processes that will lead to sustainable performance and leverage growth. 

PeopleBest was tasked with codifying the identity of a successful franchisee in a platform that could be easily scaled by the client.  There was no current system to accurately assemble the right combination of behavior traits that would impact the achievement of performance goals.


Five steps were used to discover the identity of a successful franchisee.

1. Prep:

To develop a baseline PeopleBest implemented a process review, analyze and code all the measures the client used to define what makes a franchise owner successful, beyond revenue numbers.
In this project, our client also used their internal “5 Values” as
a component of success. We acquired the content needed
to build this customized measurement in our software. The client had a list of 80+ items they wished to be included in our project to see which ones correlated highly to their best franchise owners. 

Businessman signing partnership contract at group meeting with partners.

2. Collect:

Once the analysis tool is programmed, the franchise owner population (650 owners) was informed of the project.
We shared our key objectives; to find and develop the best new owners in the organization as well as for PeopleBest to initiate its software out to the same population.
As a thank you for their participation, franchisees received the PeopleBest 8-page Leadership Brief, which outlined their scores compared to the findings of Dr. Daniel Goleman’s 6 Leadership Styles.

3. Analyze:

Upon receiving a critical mass of participation (65%of franchise owners) to measure what traits, competencies, values and survey data correlated to a successful franchise owner the software began its comparison. Our multi-factor correlation provided the exact ranges and importance of each trait, competency and element in the survey of the most successful franchise owners.

4. Validate:

Provide an overview of the most important traits, competencies, revenue data and a discussion of how this would impact their recruiting, on-boarding and life-cycle of their future franchise owners.
The impact to other parts of their business, especially in knowing where the gaps were within the existing franchise owners helped the training and development teams to pinpoint specific solutions to what an owner would need. 
Additionally, given the information of the backgrounds of their most successful owners, recruiting was able to source from the sources that have produced the best owners.

5. Predict:

Train our clients recruiting team to implement simple scores to help in their evaluation process. As part of this step we ensured there was also follow up ‘check-in’s’ to make sure they were understanding how to use scores and how to get future owners excited as they could feel more confident in their future success.

Most importantly, we provided a measurement of how much a future franchise owner would produce in ‘Revenue’ within the first TWO years!