Operating a franchise business means being able to tap into meaningful support from your franchisor and other franchisees in your network. That built-in support system is one of the major reasons entrepreneurs choose franchising. Still, long-term success often depends on going beyond what the franchisor provides. A critical part of that strategy is building partnerships in your local community.

According to the International Franchise Association (IFA), nearly 70% of franchisees report that local partnerships — whether with other businesses, nonprofits, or civic organizations — have directly helped them grow their customer base. Partnerships are more than just good PR; they can be an essential growth lever.

Franchise businesses already benefit from brand recognition and proven systems. But community partnerships create credibility and trust at the local level, where purchasing decisions are actually made.

“Franchisees who embed themselves in their communities through partnerships see a measurable uptick in loyalty and referrals,” says Dr. Ben Litalien, a Georgetown University franchise management lecturer. “People want to support businesses that support their neighborhoods.”

Benefits include:

• Customer Growth: Local partnerships expand your reach by tapping into new audiences.
• Knowledge & Resource Sharing: Partnering with other organizations can create efficiencies, reduce costs, and strengthen your local expertise.
• Brand Reputation: Aligning with credible organizations signals reliability and authenticity to customers.

The old saying is true: never stop networking. Local chambers of commerce, business associations, and nonprofit boards are all excellent places to meet potential partners. Even casual interactions can turn into opportunities for co-marketing, cross-promotion, or resource sharing.

Schooley Mitchell — North America’s largest independent cost-reduction consulting firm — frequently advises franchisees to look at partnerships as a significant business-building strategy. By building local referral partnerships, being present and active in the community and engaging with associations, chambers and networking groups in their local regions knowledge, franchisees are able to be visible, get significant referrals, and build credibility to the business community around them.

Credibility matters. A public partnership is a form of mutual endorsement, so make sure your values and goals align. According to a 2023 survey by SCORE, 42% of small businesses ended partnerships early due to mismatched expectations or cultural misalignment. Taking time to vet potential collaborators will save headaches later.

The most sustainable partnerships are built on reciprocity. Whether it’s a co-hosted event, a bundled service offering, or a joint promotional campaign, find ways that both sides can clearly benefit. Start small, then grow as trust deepens.

Partnerships also provide an excellent channel for feedback. By aligning with community groups, civic organizations, or local nonprofits, you gain direct access to conversations that reveal what matters to your customers. This real-time feedback loop can inform your business strategy and keep you locally relevant.

Supporting youth sports teams, local festivals, or charities builds goodwill and shows your franchise is invested in more than just profits. Research from Cone Communications found that 87% of consumers are more likely to buy from companies that support causes they care about.

Franchisees thrive when they blend the strength of their franchisor’s brand with meaningful local partnerships. From cross-promotional campaigns to charitable collaborations, these relationships build credibility, reduce costs, and expand your reach.

As experts like Schooley Mitchell emphasize, partnerships aren’t just about marketing — they can also drive efficiency, cost savings, and long-term stability. In short, partnerships create community roots that allow a franchise business to flourish for years to come.