Why Most Franchisees Fail and How to Win

An interview with James Hilovsky at The FranDream

Welcome to this week’s edition of The Workbench, a resource-rich weekly newsletter and podcast for home services entrepreneurs.

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This week on The Workbench, I had the pleasure of interviewing James Hilovsky, founder of The FranDream. James is a franchise matchmaker for athletes and professionals, and he’s helped grow brands from 1 to 100+ locations.

We dove deep on picking the right franchise, spotting red flags, and how home service operators can avoid common traps when considering franchise ownership.

The 7 Key Takeaways

Below are the most essential insights from my conversation that you can apply to your home services business today.

1. Adapting Quickly in Rapid Franchise Growth

James shared his firsthand story of scaling Pieology Pizzeria from a single unit to 100 stores in just three years. The breakneck pace taught him key lessons about adaptability and taking feedback from operators in the field. Listening and rapid iteration weren’t just nice-to-haves—they were essential for success with that level of growth.

"Growing that fast you really have to have your head on a swivel and change what you're doing very quickly. When you're growing that fast, you get different ideas from franchisees that make a big difference in operations, so we incorporated a lot of that into it. You just have to prioritize and keep helping everybody out."

- James Hilovsky

2. The Crucial Role of Franchisee Feedback

 When it comes to building a strong franchise system, James saw that the best ideas often came from the operators actually executing the model. He emphasized that home service owners considering franchise expansion need to stay humble and always listen to their team in the field.

"What I learned was to always be listening to everybody that's in the system of growth, especially the franchisees. We thought we had a good system, but when franchisees were out there executing it, they were finding better ways to do things. So being open-minded and able to implement a better system was key, instead of being rigid and closed off."

- James Hilovsky

3. What Makes a Top Franchisee

 According to James, a great franchisee has to bet on themselves, but more importantly, they need to thrive with systems, follow a proven playbook, and be ready to ask for help when needed. He broke down why athletes and seasoned professionals can excel—and what skill set matters most for those making the jump from corporate or independent business into franchising.

"Defining a great franchisee...first and foremost is being able to go, yes, I'm going to bet on myself and become an entrepreneur. What makes athletes great is they've been used to following a playbook all their lives, so a franchise gives them that. Franchisees are like teammates—they help each other, and that kind of support is ongoing."

- James Hilovsky

4. The Franchise Concepts with Real Momentum

 James has seen plenty of trends in franchising, especially recently. He pointed out that food-based concepts can be risky, while pet care and home services are taking off thanks to lower costs and recurring revenue. He even shared new models he’s bullish on that are disrupting traditional franchise categories.

 "If someone says they want a restaurant, I try to get them to think about it—investment level is really high, and unless you have a team that knows restaurants, it's tough. Last year, I placed most clients in the pet industry, specifically dog grooming with a subscription model. This year, it's indoor golf simulators—really good passive models. Home service is always a great stepping stone since the investment is typically lower and the support network is strong."

- James Hilovsky

5. How James Matches Clients to the Right Franchise

Matching people with the right franchise opportunity requires more than liking an industry. James walks his clients through clear questions—owner-operator or passive, goals, investment, skill set—and even uses skill-matching tests to ensure alignment. This process increases the odds of long-term success for franchisees, especially in home services.

"It's about goals—are you looking to be owner-operator, or is this a passive model? Are you aiming for generational wealth or to build one unit? We talk about investment, background, and interests. Sometimes I'll run a test to match their skill set and then show them options that really fit."

- James Hilovsky

6. Evaluating Franchise Systems: The Rubric That Matters

Every franchise promises big results. James insists that real due diligence means talking to current franchisees and being wary of the numbers in the slide deck. For home service operators, support and transparency from the franchisor come first.

"The most important aspect is to talk with existing franchisees. Any business can put numbers in a pitch, but the franchisees will tell you how it really is. I always say look at the median number in the FDD for realistic expectations, but then dig into questions about support, how long it took to get profitable, and would they do it again."

- James Hilovsky

7. Using Your Superpowers While Sticking to the System

For franchisees who want to leave their mark, James cautions that the secret sauce is usually in leadership and team building—not drastic operational changes. For home service business owners, that means focusing on their people and only tweaking as allowed by the franchisor.

"The owner's superpower is the way they run their business and treat their people. Treat employees like gold so they treat your customers like gold. You can ask about tweaks at the beginning, like if a dog grooming franchise allows different products, but just know that the brand is strong because they've perfected their system. Make your impact with your team and customers."

- James Hilovsky

Looking Ahead

 When asked about future franchise trends and where he’d invest himself, James pointed to pet care, niche home services, and even private jet cleaning—indicating that unique, specialized services will likely see continued demand.

 "Honestly, it wouldn't be a restaurant. The investment is just too high. I personally love the dog grooming space—people love their pets. There's even one where they take dogs on an adventure in a bus every week. Another new one is private jet cleaning—it's niche, great clientele, and totally mobile. Home service is always solid, but success is all about finding a franchise that can help you launch and market your business the best."

- James Hilovsky

Wow! You made it to the end; thanks for sticking with us.

The full interview is available on YouTube below, Spotify here, and Apple Podcasts here.