5 Things That Smart Franchisors Know

They say nothing beats experience.

Franchising is one of those languages of business that sounds MUCH better when coming from someone who has, well, experience. Experience meaning…”they know how to run the store” kind of experience. Franchisees tend to respond to franchisors who show operational expertise.

There ARE a few secret tricks of the “experienced franchisor” that truly helps them stand apart in the operations department.

Consider these time tested best practices:

Number Five:

The franchisor genuinely embraces a “mutually beneficial relationship” mindset.   There is no shortage of case studies regarding franchisors and franchisees reeling in disputes. The vast majority of these disputes can be headed off early on by the franchisor treating the franchisee as a highly respected part of the current and forward looking success of the brand.   Inclusion of franchisees in shaping the brand CAN be done without the need for franchisors to feel like they are forfeiting “control” or their role/s to ensure consistency.

Number Four:

LISTEN to your Operations Team.  It is not such a bad idea to have a franchisor that is being operated by an actual operations team (ponder that one for a minute). If there is one most common mistake franchisors make is that they spend inordinate amounts of time dealing with Marketing, Accounting, and Legal versus, devoting important brand and operational development time to the good folks in Operations. Why is this so common? Not necessarily because corporate leadership prefers working with Legal, Marketing, or Accounting, but more likely because their professional TRAINING is to work with industry standards like Legal, Marketing, Accounting. Few college programs train people how to work with operationally minded & skilled people. Ask questions and do NOT be a “me monster”!

Number 3:

Smart franchisors are not easily upset or discouraged.   So you are a franchisor. You have 12 or more franchisees. Let me guess…almost daily you are fielding phone calls from franchisees basically wondering “what have you done for me lately?”. Right? Some franchisors take that as encouragement to improve. Others allow it to eat at them and make them furious that those unappreciative franchisees would dare even say that. Be the person who takes the feedback in stride. This need not mean you surrender to each and every sound franchisees make, but your genuine listening and effort to understand, is a minimum.

Number 2:

Happy and Successful Franchisees = Happy and Successful (smart) Franchisor. If you really want to live a successful, happy, long life as a franchisor, you better embrace the concept that Happy and Successful Franchisees are your single most valuable asset. Hands down… Happy and Successful Franchisees trumps any and all slick sexy franchise sales theories. The trick to success in this however, is a comprehensive and proven plan that ensures your ENTIRE Company is living this cultural reality. Don’t guess. If you don’t know how to do this, ask a professional that does.

Number 1:

Don’t Forget Your Pioneers. It is important to make time for your Pioneers so that the foundation of your franchise relations is solid.Most every franchisor goes through the same evolution with respect to new vs. aging franchisees. Particularly during the early years, that evolution often looks like:

• Franchisor Starts Franchising
  • Sells Initial Franchises
  • Spends tons of time nurturing new franchisees. Because they can.
• Franchisor grows past 12 – 15 franchise locations.
  • Franchisor time is further divided
  • Franchisor spends less than previous amount of time with initial franchisees.            
• Initial Franchisees Feel Abandoned.
  • Franchisor spending time with new Franchisees.
  • Franchisor forced to spend more time with initial franchisees.
  • Franchisor finds continued growth difficult because they are essentially burning both ends of candle now

Number 0: Bonus Item (always properly promise and over deliver).

Be friendly, but not Familiar. Some franchisors know so much personal data on their franchisors you would think they must be their primary care doctor. Smart franchisors remain professional. Professional need NOT mean “no fun”. We all know the limits of being professional…right?