Why Every Franchise Needs a Unifying Vision: Jim Collins’ Hedgehog Concept

jantimms3
Apr 15
13 min read

Updated: Apr 17

Many businesses struggle to define a clear, guiding vision. Jim Collins’ ‘Hedgehog Concept’ offers a powerful framework to cut through the complexity, and franchisors, in particular, should take note.

Jim Collins refers to the unifying vision as the "Hedgehog Concept" based on an ancient Greek parable that contrasts the fox and the hedgehog. The fox is cunning and knows many strategies, while the hedgehog knows one big thing: when threatened, it rolls into a spiky ball, effectively defending itself. This metaphor illustrates the power of simplicity and focus over complexity and cunning.

In his book "Good to Great," Collins uses this analogy to describe organisations that achieve greatness by focusing on a single, unifying concept. These organisations simplify a complex world into a single organising idea that emerges from a deep understanding of three intersecting dimensions that guides all their actions and decisions:

What they are deeply passionate about: Activities that ignite genuine enthusiasm within the organisation.
What they can be the best in the world at: Understanding the organisation's unique strengths and focusing on areas where it can excel above all others.
What drives their economic engine: Determining the key metrics that most effectively generate sustained and robust cash flow and profitability.

The intersection of these three circles forms the Hedgehog Concept, a simple, crystalline concept that guides all decisions and actions within the organisation. By adhering to this focused approach, companies can channel their resources towards areas where they can truly excel, leading to sustained success.

In this short two minute video Jim Collings explains the hedgehog concept and how it is applied by the ‘Great’ companies in his research.

https://www.youtube.com/watch?v=JUrdbmNBpyY

So how does this apply to franchising? The answer is simple: The highest-performing franchise brands operate with a unifying vision that aligns perfectly with the Hedgehog Concept, placing franchisee success at the core of everything they do.

Applying the Hedgehog Concept to Franchising

The Hedgehog Concept is about finding the sweet spot between three key elements:

✅ What Drives Your Economic Engine

✅ What You Are Deeply Passionate About

✅ What You Can Be the Best in the World At

What Drives Your Economic Engine?

I am a passionate believer that the number one critical success factor in franchising is the franchisors ability to recruit, develop and replicate successful franchisees and this belief stems from 25 years of practical hands on franchising experience coupled with evidence from my 7-year PhD research study into franchising success factors.

What separates the highest-performing franchise brands from the rest? A unifying vision centred on franchisee success. Every single high-performing franchise brand involved in my research was governed by a clear, focused vision that prioritised franchisee growth, profitability, and operational excellence. This vision, in turn, shaped their business strategy and decision-making.

For franchisors, successful franchisees are the economic engine. A thriving network of high-performing, profitable franchisees fuels brand growth, system-wide profitability, and long-term sustainability. That means franchisee success must be at the heart of a franchisor’s Hedgehog Concept.

Franchising Example Anytime Fitness

Anytime Fitness built its success by focusing on a predictable, high-margin economic engine: membership-based recurring revenue. Instead of relying on one-time sales spikes, they focused on building a steady, monthly subscription model designed to benefit franchisees by providing predictable cash flow, making it easier to sustain profitability over time.

Anytime Fitness designed its economic engine to prioritise franchisee profitability first, ensuring long-term success for the brand. This model created a win-win scenario: Franchisees thrive because of predictable income, and the brand scales efficiently without high operational costs.

What Are You Deeply Passionate About?

Franchising isn’t just about selling more locations; it’s about building a network of passionate franchisees who believe in the brand’s mission and values. The most successful franchise brands align their vision, culture, and motivation with a higher purpose that franchisees genuinely care about.

Passion fuels consistency and engagement: If franchisees are just in it for the money, they won’t go the extra mile.
A strong purpose builds long-term commitment: Franchisees need to believe in why the brand exists beyond just making a profit.
Passion-driven brands attract better franchisees: The right people are drawn to businesses that have a clear purpose and vision.

Franchising Example: Chick-fil-A

Chick-fil-A is passionate about customer service and community values. Their franchisees don’t just sell chicken sandwiches—they believe in hospitality as a calling. This deep commitment to service excellence has created a highly engaged franchisee network and one of the highest-performing fast-food brands in the U.S.

What Can Your Franchise Be the Best in the World At?

This is about identifying your true differentiator, not just what you’re good at, but what you can absolutely dominate. Many franchise brands fall into the trap of trying to compete on too many fronts, instead of focusing on the one thing they can do better than anyone else.

It’s not about what you want to be the best at, it’s about what you can realistically achieve based on your unique strengths, assets, and capabilities.
If a franchise cannot genuinely be the best in the world at something, then that aspect should not be their central focus.
This requires brutal honesty, many businesses assume they must stick to what they’ve always done, even when their real competitive advantage lies elsewhere.

Franchising Example: McDonald's

McDonald's realised it could be the best in the world at operational efficiency and consistency, not just selling burgers. Instead of focusing on gourmet food or customisation like other fast-food brands, they built their entire franchise system around speed, consistency, and scalable operations. This clarity helped McDonald's outperform competitors globally.

However, as a unifying vision it lacks the other two components, what they can be deeply passionate about and what drives their economic engine and therefore potentially lead to strategies and decision making that are not centred on recruiting, developing and replicating successful, high performing franchisees. Let’s delve in a bit deeper.

A Hedgehog Concept Showdown: McDonald's vs. Chick-fil-A vs. Anytime Fitness

McDonald's, Chick-fil-A, and Anytime Fitness are three highly successful franchise brands, but their approaches to long-term strategy, franchisee engagement, and economic sustainability are vastly different.

Using Jim Collins’ Hedgehog Concept, we can assess how well each franchise aligns its strategy around:

✅ What they can be the best in the world at

✅ What they are deeply passionate about

✅ What drives their economic engine

While Chick-fil-A and Anytime Fitness have maintained clear alignment, McDonald’s has struggled at times with strategic missteps.

What Can They Be the Best in the World At?

Chick-fil-A: Best at Fast-Food Hospitality & Franchisee Development

Chick-fil-A differentiates itself by excelling in fast-food customer service, hospitality, and franchisee success.
They don’t try to compete on speed alone (like McDonald's) but instead focus on creating a premium fast-food experience.
Their franchisee selection process is highly selective, leading to consistently high-performing locations.

Verdict: Chick-fil-A has a clear, focused identity.

McDonald's: Mastered Efficiency, Lost Strategic Focus

McDonald's built its success on operational efficiency and consistency, creating a scalable, fast-food franchise model that dominated the industry.
Over time, it lost focus, shifting between speed, quality, customisation, and health-conscious trends, diluting its core strength.
Instead of doubling down on efficiency and standardisation, McDonald's chased premium and health trends, leading to misaligned strategies.
Initiatives like ‘Create Your Taste’, which allowed customers to build personalised burgers, added complexity, slowed service, and frustrated franchisees, ultimately failing.
Unlike Chick-fil-A and Anytime Fitness, which remained deeply committed to their core differentiators, McDonald's lacked a consistent unifying vision that aligned passion, strategy, and franchisee success.

Verdict: McDonald's excelled in efficiency, but without a clear, unwavering passion or an economic model that truly prioritised franchisee success, its strategic missteps hindered long-term sustainability

Anytime Fitness: Best at Scalable, Convenient, 24/7 Fitness

Anytime Fitness built its model on accessibility and convenience, revolutionising the fitness franchise industry.
They pioneered the 24/7 gym model, allowing members to work out anytime with minimal staffing costs.
Unlike McDonald’s, which experimented with trends, Anytime Fitness stayed laser-focused on providing a simple, affordable, and scalable fitness solution.

Verdict: Anytime Fitness stayed true to its strength—low-cost, 24/7 convenience—making it the global leader in its niche.

What Are They Deeply Passionate About?

Chick-fil-A: Passion for Service, Values, & Franchisee Success

Chick-fil-A’s corporate purpose ("To have a positive influence on all who come in contact with Chick-fil-A") is deeply ingrained in its culture.
They train employees beyond the basics to create exceptional customer experiences, such as the signature “my pleasure” response.
Passion extends to franchisee relationships, ensuring long-term success and engagement.

Verdict: Chick-fil-A’s passion is authentic, making franchisee and customer loyalty exceptionally strong.

McDonald's: Lacks a Deep Passion Beyond Growth & Adaptability

McDonald's has passion for expansion, but lacks a clear, unifying mission beyond market dominance.
Unlike Chick-fil-A, McDonald's franchisees are primarily investors, with no emphasis on mission alignment.
This has led to franchisee dissatisfaction over the years, as corporate decisions often prioritise revenue over franchisee success.

Verdict: McDonald's lacks a clear passion beyond profit, making franchisee buy-in weaker than Chick-fil-A.

Anytime Fitness: Passion for Making Fitness Accessible to Everyone

Anytime Fitness is passionate about removing barriers to fitness, ensuring that anyone, anywhere, anytime can access a gym.
Their passion for simplifying fitness accessibility has allowed them to create affordable, flexible membership options that fit into people's busy lives.
They support franchisees heavily, providing training and tools to help them succeed in the long run.

Verdict: Anytime Fitness has strong passion alignment—staying committed to making fitness affordable and available 24/7.

What Drives Their Economic Engine?

Chick-fil-A: Franchisee Profitability & High Revenue Per Location

Chick-fil-A’s economic model prioritises high revenue per store rather than rapid expansion.

Key driver: They select fewer, high-performing franchisees, ensuring each location is highly profitable.
The result? Chick-fil-A outperforms McDonald's on per-unit economics, with an average revenue of $8.6 million per store vs. McDonald's $4 million per store.

Verdict: Chick-fil-A aligns franchisee profitability with corporate success, ensuring long-term economic sustainability.

McDonald's: Real Estate Model at the Expense of Franchisees

McDonald's relies heavily on real estate ownership, leasing land to franchisees and profiting from rent and franchise fees.
This model has led to conflicts, when franchisees struggle financially, McDonald's still profits from rent, creating misalignment.
Aggressive expansion in the 2010s led to store cannibalisation, where too many locations competed against each other, hurting franchisee margins.

Verdict: McDonald’s prioritises corporate revenue, but at times it has created tension with franchisees, reducing long-term sustainability.

Anytime Fitness: Recurring Membership Revenue Model for Franchisee Stability

Anytime Fitness built its economic engine on predictable, recurring revenue, allowing franchisees to rely on monthly membership fees rather than unpredictable sales spikes.
Their low-cost, 24/7 model allows franchisees to operate with minimal staff and overhead, keeping profit margins high.
Unlike McDonald's, where franchisees struggle with high real estate costs, Anytime Fitness locations are small, affordable, and efficient.

Verdict: Anytime Fitness’ recurring revenue model creates long-term franchisee stability, ensuring both corporate and franchisee profitability.

Final Hedgehog Concept Scorecard: McDonald's vs. Chick-fil-A vs. Anytime Fitness

Hedgehog Concept Dimension	Chick-fil-A	McDonald's	Anytime Fitness
What can they be the best in the world at?	Fast-food hospitality & franchisee development, stayed laser focused.	Originally efficiency, but later lost focus chasing too many trends.	24/7 gym access & low-cost fitness, stayed highly focused.
What are they deeply passionate about?	Passion for values, service, & franchisee success.	No deep unifying passion, focused on growth, adaptability, and trends.	Passion for removing fitness barriers & making exercise accessible.
What drives their economic engine?	High revenue per store & franchisee profitability, fewer locations but high-performing franchisees.	Real estate-driven model, maximises corporate profits but can strain franchisees.	Recurring membership revenue model, predictable, scalable, and highly profitable.

Key Lessons for Franchisors

A strong unifying vision prevents strategic drift.
- McDonald's lost focus on its core strengths.
- Chick-fil-A and Anytime Fitness stayed deeply committed to their brand identities.
Franchisee success should drive strategy.
- Chick-fil-A and Anytime Fitness prioritise long-term franchisee profitability.
- McDonald's has struggled with franchisee dissatisfaction due to real estate costs.
Recurring revenue creates stability.
- Anytime Fitness ensured franchisee success through membership-based revenue.
- McDonald's franchisees face greater financial uncertainty due to fluctuating sales & high fees.

Final Thought: Which Model is More Sustainable?

McDonald's remains a global giant, but its Hedgehog Concept alignment has weakened, leading to short-term failures and franchisee dissatisfaction.

Chick-fil-A and Anytime Fitness, on the other hand, have remained highly focused, resulting in higher profitability, fewer franchisee struggles, and stronger long-term success.

Blockbuster - A Vision That Failed to Deliver

In the 1990s, Blockbuster Video's vision focused on becoming the leading home entertainment provider through its vast network of retail stores. The company prioritised convenience and customer satisfaction, expanding aggressively, opening one new store per day at its peak.

However, as technology advanced and consumer preferences shifted to digital formats, Blockbuster’s physical rental model became a liability. The company’s reluctance to adapt to mail-order rentals and streaming led to its decline. This demonstrates the importance of a unifying vision that evolves with market dynamics.

A more future-focused vision could have been:

"To lead the evolution of home entertainment by embracing emerging technologies to deliver diverse and convenient viewing experiences."

This would have positioned Blockbuster to:

Embrace Digital Innovation: Invest in streaming and online platforms.
Expand Content Delivery: Develop mail-order rentals and digital services.
Enhance Customer Experience: Prioritise user-friendly technology and personalised recommendations.

Such a vision could have helped Blockbuster pivot towards digital, potentially becoming a Netflix-like leader in home entertainment.

How Well Would This Vision Align with the Hedgehog Concept?

What Could Blockbuster Have Been the Best in the World At?

Original Vision (Physical Stores) – Weak Alignment

Blockbuster aimed to be the best at physical rentals, but this became obsolete as digital emerged.

New Vision (Embracing Digital) – Strong Alignment

A shift to technology-driven entertainment delivery could have secured long-term leadership.

Verdict: A digital-first strategy could have sustained Blockbuster’s industry dominance.

What Was Blockbuster Deeply Passionate About?

Original Vision (Retail Rental) – Weak Alignment

Blockbuster’s passion for customer convenience was limited to in-store experiences.

New Vision (Content Accessibility) – Strong Alignment

Embracing streaming and digital solutions would have better aligned with consumer needs.

Verdict: Passion for entertainment accessibility would have made Blockbuster more adaptable.

What Would Have Driven Blockbuster’s Economic Engine?

Original Vision (Retail-Based Revenue) – Weak Alignment

Blockbuster relied on late fees and in-store rentals, which became unsustainable.

New Vision (Diversified Revenue Streams) – Strong Alignment

Subscription streaming, digital rentals, and kiosks could have created a scalable, long-term revenue model.

Verdict: A forward-thinking model could have prevented Blockbuster’s revenue collapse.

Final Score: Blockbuster’s Original vs. Proposed Vision

Hedgehog Concept Dimension	Original Vision (Retail-Centric)	Proposed Vision (Digital Evolution)
Best in the World At?	Physical rentals—became obsolete.	Seamless, technology-driven content delivery.
Deep Passion?	Focused on in-store selection, not innovation.	Passion for entertainment accessibility via new technologies.
Economic Engine?	Depended on late fees & physical locations—unsustainable.	Subscription streaming, digital rentals—scalable & profitable.

Key Takeaways: Why a Stronger Vision Matters

✅ A company’s Hedgehog Concept must evolve with industry shifts.

✅ A future-focused vision aligns strategy with long-term growth.

✅ Sustainable economic models must diversify revenue streams.

Final Thought: Blockbuster’s Missed Opportunity

Had Blockbuster embraced a digital-first vision, it could have led the streaming revolution instead of being disrupted by it. This case study highlights the importance of aligning vision, passion, and economic sustainability—a critical lesson for franchisors and business leaders.

Snap Printing – A Vision That Failed to Deliver

When I joined Snap Franchising Ltd 25 years ago as General Manager of a failing company-owned store, my team and I transformed it into Snap’s highest-performing franchise within two years. A new CEO was appointed, and after deciding to sell the store as a franchise, I moved into the corporate team as International Manager for People Development.

To set the company’s direction for the 21st century, the CEO led a leadership summit, bringing together management, field support teams, and some top performing franchisees to define Snap’s Vision and future direction. In preparation, he gave us all a copy of Jim Collins’ Good to Great to read, encouraging us to think critically about our unifying vision. At the time, the instant print market was in decline, technology was evolving rapidly, and Snap’s once-explosive growth had slowed.

The summit sparked heated debate:

Should we leverage our combined production power to attract major corporate accounts?
Should we shift away from our small business, corner-shop image?
Should franchisees be trained to sell at the boardroom level instead of just working behind the counter?
Should international expansion be our priority?
Should graphic design lead our business model, given its higher profitability?
How do we ensure we never lose our reputation for excellent customer service?

Eventually, we decided that Snap should be the best in the world at providing corporate print solutions, leading to suggested vision statements like:

"To be the premier partner for corporations, delivering innovative printing and graphic design solutions with unparalleled customer service."
"To be the world’s leading provider of corporate printing and graphic design solutions, expanding our global footprint through unwavering commitment to exceptional customer service."
"To transform into a global powerhouse in corporate printing and graphic design, leveraging superior customer service as the catalyst for international growth and industry leadership."

The final vision statement didn’t provide the clarity or focus needed to guide Snap’s strategy, and ultimately, it failed to deliver the intended outcome.

As the years passed, things didn’t go as expected and Snap hit a growth plateau and then went into decline for many years. When I re-read Jim Collins’ Good to Great, I reflected on our vision-setting process and realised a critical flaw, our vision didn’t provide the right focus for business strategy and decision-making.

That’s when I had my light globe moment. Looking at the Hedgehog Concept, I saw what Snap’s true unifying vision should have incorporated developing successful franchisees!

If franchisee success had been the foundation of our business strategy, then maybe we could have become the best in the world at providing corporate print solutions, but that goal was impossible without a thriving franchise network.

👉 Franchisee success is the economic engine that fuels everything else. Without it, even the strongest industry vision struggles to become reality.

Aligning Vision and Mission

The Unifying Vision provides a long-term direction and aspiration for a business, but it also needs a mission statement to define how that vision will be achieved. While the vision outlines where the company wants to go, the mission clarifies what it does today, who it serves, and how it operates to progress toward that goal. A strong mission statement ensures that daily decisions, franchise operations, and strategic initiatives align with the broader vision, creating cohesion, consistency, and measurable impact across the organisation.

If I had the knowledge 25 years ago that I have today, I would have strongly advocated for Snap’s vision to be more like this:

Vision: "To build a world-class franchise network of high-performing owners who embody our brand’s mission, setting new benchmarks in corporate printing and graphic design worldwide."

With an accompanying Mission Statement to ensure strategic alignment:

Mission: "To become the global leader in corporate printing and graphic design, driven by exceptional franchisees and superior customer service that fuels industry innovation and international expansion."

This vision and mission would have provided a stronger foundation for long-term growth, ensuring that franchisee success remains at the heart of Snap’s evolution while positioning the brand as an industry leader in both service excellence and innovation.

Here are some examples of Unifying Visions with aligned mission statements that tick the Hedgehog Concept boxes for me:

To build a world-class franchise network of high-performing owners who embody our brand’s purpose, delivering fresh, fast, and high-quality food while setting new benchmarks for operational excellence and customer experience worldwide.

To create a world-class franchise network of high-performing owners who drive our brand’s vision forward, inspiring and empowering communities to lead healthier lives through accessible, results-driven fitness solutions.

To build a world-class network of high-performing business service franchisees who champion our brand’s mission, delivering trusted, results-driven solutions that empower businesses to thrive in an evolving marketplace

What do you think?

Without a clear unifying vision, franchise brands struggle to scale, engage franchisees, and maintain long-term success. If you’re ready to craft a vision that truly aligns with the Hedgehog Concept and drives franchisee success, let’s talk. Book a call today and let’s craft a vision that fuels franchisee success and drives long-term growth.