Updated October 2025
With a New Year comes countless New Year’s resolutions where people set goals for themselves to pursue over the next twelve months. While done with good intentions, it’s all too easy to set goals each year and then lose focus on them a couple of months later.
The same thing goes for franchisees running their business. Setting goals is just one part of running a successful business, but actually executing on them is a completely different thing. It’s important for franchisees to set achievable goals that they can execute on.
Your franchisor will likely assist you with setting annual goals to reach, but you can also have your own personal business goals, which will help you maintain and grow your franchise location. Let’s evaluate the importance of goal setting for a business and how you can actually reach the milestones you set at the beginning of each year.
Why Should You Set Annual Goals for Your Business?
To use an archery analogy, setting goals is like having a target. You could shoot arrows off into the distance just for fun, but you won’t be able to tell if your archery skills are improving or not. However, if you set up a target to shoot at, you can then measure how well you’re doing and make adjustments to get better.
Similarly, when you don’t have goals for your business, it’ll be difficult to measure any marketing or promotional campaigns because you’re just shooting arrows at nothing. With goals, you’ve set your target, and you’ll know if you need to make adjustments.
You should also use numbers when setting goals since those are measurable. For example, if your goal is to increase your website visitors by 10 percent over the next six months, then you’ll be able to concretely tell if your marketing and promotions are helping you reach that goal or if you need to change your strategy.
How to Set and Achieve Your Franchise Goals
Setting goals is one thing, executing them effectively is another. To make meaningful progress, franchise owners need goals that are realistic, measurable, and aligned with their brand’s overall system.
Here’s how to approach goal setting strategically:
- Clarify Your Vision: Define your franchise’s purpose and direction. A clear vision acts as a filter for every decision you make and helps you stay focused on what truly drives growth.
- Set SMART Goals: Make each goal Specific, Measurable, Achievable, Relevant, and Time-bound. For example, instead of saying “I want to increase sales,” set a goal like: “Increase monthly revenue by 10% by the end of Q2 through improved local marketing and customer retention.”
- Prioritize What Matters Most: You may have several goals, from hiring and training to marketing and profit targets. Focus on the top three to five that will have the biggest impact on your franchise’s success this year.
- Build a Realistic Action Plan: Break big goals into smaller milestones. Assign responsibilities, deadlines, and resources to each step. This keeps progress steady and measurable throughout the year.
- Track and Adjust Regularly: Review performance at least monthly to see what’s working and what needs attention. Be flexible — market conditions and local dynamics can shift quickly, and successful franchisees adapt accordingly.
- Celebrate Milestones: Recognize small wins along the way. Celebrating progress keeps you and your team motivated while reinforcing a positive performance culture.
6 Franchise Goals You Need to Hit in Year #1
Launching your first year as a franchise owner is both exciting and demanding. The decisions made and goals you set during this time will shape your long-term success. Your franchisor will provide support and a roadmap, but it’s up to you to turn those tools into measurable results.
Here are six key franchise goals every new owner should focus on during their first year:
#1 – Achieve Operational Excellence
Before growth comes consistency. Aim to master your franchise’s systems, processes, and operational standards as outlined in your franchise manual. Focus on:
- Training your team thoroughly
- Implementing efficient daily routines
- Maintaining brand quality and customer experience
Your goal: to become a model location that runs smoothly even when you’re not there.
#2 – Hit Your Revenue and Profit Targets
Your franchisor will likely provide sales benchmarks for your first 12 months, but don’t just focus on revenue. Track profitability too.
- Identify your breakeven point early
- Set clear monthly sales targets
- Review costs quarterly to maximize margins
- Smart financial monitoring helps you stay proactive instead of reactive
#3 – Build Local Brand Awareness
Even with a national or regional brand behind you, local marketing is your responsibility. Set goals to:
- Participate in community events or sponsorships
- Build local partnerships with schools, sports teams, or nonprofits
- Create a consistent social media presence highlighting your location
This builds a loyal base that knows and trusts your business.
#4 – Strengthen Customer Relationships
Customer retention is more valuable than new acquisition, especially in a franchise’s first year. Focus on:
- Gathering customer feedback and reviews
- Launching loyalty programs (if your franchisor allows)
- Following up with clients personally after service or purchase
A strong customer base in year one builds steady cash flow in year two.
#5 – Develop and Retain a High-Performing Team
Your employees are the face of your franchise. Early investment in hiring, training, and development pays dividends.
Set team goals for:
- Employee retention and satisfaction
- Training completion rates
- Performance metrics (sales, service ratings, etc.)
A motivated team creates consistent results and reflects well on the franchise brand.
#6 – Stay Engaged with Your Franchisor and Network
Franchisees who regularly engage with their franchisor, attend training events, and connect with other owners often outperform those who don’t.
Set goals to:
- Attend all franchise meetings and webinars
- Build relationships with fellow franchisees
- Seek out mentorship or peer feedback
You’ll gain insights from experienced operators and stay aligned with brand-wide initiatives.
Common Mistakes New Franchisees Make When Setting Goals
Even with a solid plan, it’s easy for new franchisees to slip into unproductive habits. Avoid these common pitfalls to stay on track:
#1 – Setting Goals That Don’t Align with the Franchise Model
One of the biggest advantages of franchising is having a proven system to follow. Some new owners, however, set goals that conflict with established brand processes or marketing strategies.
Avoid it by: aligning your goals with your franchisor’s systems and seeking approval before implementing new initiatives. The most successful franchisees innovate within the framework — not outside it.
#2 – Ignoring Data and Relying on Guesswork
It’s tempting to set goals based on gut feeling (“I’ll double sales this year!”), but goals grounded in data are far more effective.
Avoid it by: using real metrics from your franchisor, local market research, and your first few months of performance to guide realistic targets.
#3 – Focusing Only on Revenue
While financial goals are essential, revenue alone doesn’t measure true success. Profitability, customer satisfaction, employee retention, and operational consistency all contribute to long-term performance.
Avoid it by: balancing financial goals with operational and cultural ones, like reducing employee turnover or improving customer review scores.
#4 – Setting Too Many Goals at Once
Many new franchisees get caught up in ambition and create a long list of goals, spreading their focus and resources too thin.
Avoid it by: narrowing your priorities to three to five key objectives at a time. Once those are achieved or systemized, move on to the next set.
#5 – Neglecting to Track Progress
Even well-set goals can fail if you’re not monitoring performance consistently.
Avoid it by: scheduling monthly check-ins to review metrics, compare actual vs. projected results, and identify where adjustments are needed.
#6 – Forgetting to Involve the Team
Goals can’t be met if only the owner knows about them. Your employees are the ones executing the daily tasks that make success possible.
Avoid it by: communicating your goals clearly to your team, sharing why they matter, and recognizing progress publicly. This builds accountability and motivation across the workplace.
#7 – Giving Up Too Quickly
Franchise success doesn’t happen overnight, especially in your first year. Some owners abandon goals at the first sign of difficulty instead of making small, strategic adjustments.
Avoid it by: remembering that flexibility is part of growth. When you hit an obstacle, don’t scrap the goal. Instead, adapt your approach and keep moving forward.
Remember that franchise success is built on consistency, clarity, and accountability, not perfection. The key is to set goals that stretch your business while remaining aligned with your brand’s systems and your local market realities.
Interested in Owning a Franchise?
The important thing to remember about goals is that while you want to reach them, you can still gain a lot even when you don’t. When you fall short of a goal, you can make adjustments. If you reach a goal too easily, then you can set more difficult ones in the future.
If your goal right now is to become a franchise business owner, then FranNet can help you reach it. Our expert franchise consultants will evaluate your goals and abilities to match you with the right franchise opportunity. They will walk you through the process from start to finish answering any questions you have. Schedule your free consultation today to get started!