Best practice in sharing unit economics
The fastest-growing franchise systems have one thing in common: they are radically transparent.
I have worked with hundreds of franchise brands and have seen firsthand how powerful and impactful it is to share unit economics across a franchise system. This should not come as a surprise. Transparency around performance makes sense psychologically, operationally, and culturally. It aligns people. It builds trust. And, most importantly, it drives better results.
So why do some franchisors still resist sharing revenue and unit-level economics within their system?
Often, it comes down to how the franchise was originally designed. When transparency is not architected into the model from the beginning, avoiding it can feel easier in the short term. Over time, however, this avoidance becomes a growing point of friction, one that erodes trust and limits performance rather than accelerating it.
Making unit economics part of the culture
Sharing unit economics is not optional if a franchisor wants to build a high-performing, aligned network. It must be embedded into the culture and introduced early as a core part of the franchisee journey, particularly for new and emerging brands.
This starts with documentation and leadership clarity.
Make transparency policy, not preference
Include the process for sharing unit economics directly in the operations manual. Explain not only what information is shared, but why it matters to the success of the system.
Celebrate transparency from day one
Franchisees should be excited about the level of insight they will receive. Lead with confidence, not apology. Do not “sell” the idea of sharing data. Simply make it a defining feature of the brand.
Be unwavering
Transparency is part of the culture and is not negotiable. A restaurant brand would never debate the ingredients used to make its food. Similarly, franchisors should not debate the information used to produce results.
Build a smart KPI and reporting system
Use data to celebrate wins without embarrassing underperforming locations. Strong leadership recognises not only top performers, but also improvements, milestones, and positive trends.
Segment data as the system grows
Consider sharing performance by region, store size, or length of time open. This makes the information more relevant and easier to digest.
Lead with empathy
Underperforming franchisees did not enter the business to struggle. Use the data to support and elevate them, helping them improve one position at a time through targeted coaching and resources.
Introducing transparency in a mature franchise system
For established franchise systems that have not historically shared unit economics, transparency is still essential, but the approach to implementation must be more deliberate.
Expect resistance. That resistance is normal.
A successful transition typically requires a clear, staged plan over approximately 12 months:
Declare the shift publicly
Announce transparency as a strategic priority at the annual conference and position it as a foundational change for the future of the brand.
Introduce revenue in soft terms
Group locations into categories, such as Group A, B, and C, without publishing revenue figures.
Rank locations without numbers
Share a ranked list based on year-to-date performance but omit dollar values.
Normalise the conversation
Make unit economics a regular topic in meetings, communications, and strategic discussions.
Lead by example
Have members of the franchise advisory council volunteer to share their revenue first.
Reveal selectively
In subsequent months, reissue the same rankings with revenue figures shown for early adopters.
Tie data to growth strategy
Host system-wide meetings focused on how to grow revenue, using shared data as a reference point.
Phase in full transparency
At the three-month mark, begin publishing weekly revenue for Group A, with clear communication that this is a step toward system-wide transparency by month twelve.
Introduce Groups B and C at six months and beyond.
Celebrate the milestone
Use the next annual conference to celebrate full transparency and highlight success stories that emerged as a direct result of the shift
Final thought
As a keynote speaker and advisor to franchise systems, I am often involved not only in developing these strategies, but also in helping leadership teams communicate and implement them effectively.
In today’s competitive landscape, complete transparency is no longer optional. Franchisors who avoid it risk slower growth, weaker culture, and leaving significant value on the table. The choice is simple: commit to transparency or accept the cost of avoiding it.
Make unit economics a cornerstone of your strategy and be intentional, confident, and disciplined in how you execute it. If transparency is not written into your operations manual today, it is not truly part of your brand.
