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I Read the Best Book on Franchising So You Don’t Have To

Every Kids Franchise Buyer Hits These 6 Stages. Most Don’t See Them Coming.

“If you think all the relationships are hunky dory and everybody’s swimming in $100 bills, you’re wrong.”

That’s Emile, founder of Little Boomers Basketball.

He’s not talking about the pitch or the glossy brochure. He’s talking about what a children’s franchise opportunity actually looks and feels like once you’re in it.

With 21 active franchises across Australia, Emile has watched the franchise relationship play out across every personality type, every territory, every stage of business growth.

In a recent episode of Courtside Conversations, he shared the one framework that explains everything — the six stages every franchisee goes through, based on the research of Greg Nathan, a psychologist and global authority on franchise relationships.

Knowing these stages before you join a franchise network is an unfair advantage.

Most people only name them in hindsight.

The Marriage Analogy That Changes How You Think About Franchising

Anyone who’s been married knows the honeymoon doesn’t last.

There’s turbulence. Good seasons and hard seasons. Times when you’re completely in sync — and times when you’d rather not be in the same room.

The franchise relationship works the same way.

Greg Nathan identified six stages that franchisees move through — almost universally, almost predictably. Emile calls them Glee, Fee, Me, Free, See, and We.

Every single one of them shows up inside the Little Boomers Basketball network.

Here’s what each stage actually looks like.

Stage 1 — Glee

This is the start.

You’ve just signed your franchise agreement. You’re excited, a little nervous, and full of energy. You’ve become a business owner. There’s a spring in your step.

Emile knows this phase well — and he’s careful not to get swept up in it.

“I’m very careful that I don’t get carried away in the glee phase,” he says. “Because I know that after the glee phase finishes and the realities of running a business come in, we’re going to move to phase number two.”

In the glee stage, most franchisees look up to head office almost like a mentor. They’re grateful, appreciative, and keen to learn.

It’s a great start. But it doesn’t last forever.

Stage 2 — Fee

This is where friction starts.

The franchisee has been operating for a while. And they’ve got people in their ear — friends, family, well-meaning outsiders without business experience — asking questions like:

  • “Why are you paying royalty fees?”
  • “You’re out there doing all the hard work. What are they doing?”

The franchisee starts questioning fees they understood and agreed to when they signed.

It’s not always rational — but it’s very normal.

“As long as we’re offering more value than what the fees are, the franchisees are okay,” Emile says. “It’s when the fees exceed the value — that’s when you get an upset franchisee.”

Before you enter any franchise network, read the Franchise Disclosure Document carefully. It outlines every fee the franchisor can charge you.

You should also understand how franchise royalty structures work, which we break down in Royalty Fees Explained: What Franchise Owners Really Pay.

Stage 3 — Me

By now the franchisee has hit their stride.

Enrolments are growing. They’re working hard. And something psychological starts to happen — what Greg Nathan calls the self-serving bias.

When things are going well, franchisees credit themselves.

When things go sideways, they point the finger at head office.

“It’s me, me, I’m doing all the hard work,” is how Emile describes this stage.

And honestly — they probably are working hard.

But what can get lost is the brand power sitting behind them.

“A franchisor like myself — we’ve built a brand, and that takes years and years to build. You as a franchisee get to leverage that brand and the goodwill associated with it.”

This stage can also produce the most useful feedback in the whole relationship.

When Little Boomers Basketball franchisees flagged that a new IT ticketing system felt “robotic and non-human,” Emile’s team listened, made changes, and improved the process for the whole network.

Good criticism, handled well, makes everyone stronger.

Stage 4 — Free

This is the one that surprises people the most.

The franchisee has been in the network for three or four years. They’re good at what they do. And they’re starting to feel constrained by the franchise agreement.

Emile had a real example unfold in the network just weeks before recording this video.

A senior franchisee wanted to branch into basketball competitions — something outside Little Boomers Basketball’s core grassroots program. The franchise agreement didn’t allow it. There was friction. It got resolved on a phone call.

“If you’re in the free stage and you’re getting weighed down by the franchise agreement,” Emile says, “you’ve got to have a discussion with your franchisor. Am I going to stay, or am I going to pivot and get out?”

It’s a crossroads conversation.

The franchisees who have it honestly are the ones who go on to thrive.

Stage 5 — See

This is where the shift happens.

The franchisee and franchisor both arrive at the same realization — working together produces better outcomes than working against each other.

The tension eases. Collaboration increases. Eyes open.

“If we work together, you’re going to run a more profitable business, and we’re going to increase our royalty income from it,” Emile says.

For the first time, the goals of both parties feel genuinely aligned.

Stage 6 — We

This is the stage every franchise relationship is working toward — interdependence.

Not the franchisee depending on head office (glee).

Not the franchisee wanting to break free (free).

Both parties recognizing they’re stronger together.

“Both franchisors and franchisees need each other,” Emile says. “And if we’re in it together and we’re stronger — we’re going to dominate together.”

When a Little Boomers Basketball franchisee reaches the We stage, they’re not just running a successful business. They’re actively helping build the network.

Common Mistakes People Make

  • Assuming the “glee” stage lasts forever
  • Joining a franchise without properly reading the agreement
  • Listening to people with no franchise experience
  • Thinking hard work alone creates success
  • Ignoring the value of brand systems and support
  • Fighting the franchise agreement instead of discussing concerns early
  • Expecting zero conflict inside a franchise relationship
  • Believing all successful franchisees think the same way

Key Takeaways

  • Every franchisee goes through emotional stages over time
  • Franchise relationships naturally evolve
  • Early excitement eventually turns into real business pressure
  • Franchise fees only make sense when value is delivered
  • Strong franchisees still benefit from strong brands
  • Independence and structure will always create some tension
  • Communication matters more than emotion
  • The healthiest franchise systems become collaborative over time

FAQ: Common Questions People Ask

Is it normal to question franchise fees later on?

Yes. Most franchisees eventually start evaluating whether the value matches the fees they pay. That’s why understanding the full franchise model before signing is important.

What happens if I want to try new business ideas later?

That depends on the franchise agreement. Some ideas may fit within the system, while others may conflict with brand direction or operational rules.

Do all franchisees eventually get frustrated?

Not necessarily frustrated, but most experience different emotional stages over time. That’s normal in any long-term business relationship.

Can a franchise relationship improve after conflict?

Yes. In many cases, healthy communication and collaboration strengthen the relationship over time.

Is hard work enough to succeed in a franchise?

Hard work matters, but systems, branding, support, and consistency also play a major role. Strong franchise businesses usually combine both.

Keen to learn more?

If you want a clearer understanding of how a Little Boomers Basketball franchise works behind the scenes, you can explore our Franchise FAQs to learn more about the business model, support systems, and what to expect before getting started.