Franchise networks spend millions on branding but bleed money quietly through turnover — and nobody talks about it
Was digging into some numbers recently and something stood out.
The average turnover rate in franchise businesses sits around 100-150% annually in hourly roles. That means some networks are replacing their entire workforce every single year.
The cost per hire in that space? Anywhere from $1,500 to $4,000 per employee when you factor in recruiting, onboarding and training.
Now multiply that across 50, 100, 200 units.
The crazy part is most of that turnover isn't because the candidates were bad. It's because the process is broken. Candidates fall through the cracks between units. Good people get rejected at one location while two miles away the same brand is desperate.
Nobody owns the problem because nobody has visibility across the whole network.
Curious if anyone here has built in the HR or franchising space — how do you actually get operators to fix a problem they've normalized?