15 July 2024

    Complacency among franchisees: A silent cancer to eradicate for growth

     

    Your growth has come to a halt, your sales are lackluster, and your franchisees seem reluctant to open new franchises. What if the culprit were the complacency of your franchisees? This silent and persistent cancer affects many franchise networks. Complacency is a real threat to the growth and success of your network, but with the right strategies, it can be effectively managed.

     

    Understanding complacency

     

    Complacency among franchisees manifests when they adopt a passive attitude, simply following directives without seeking to excel or grow. I refer to it as the “good enough” franchisee syndrome, where their favorite thought is, “I’m fine as I am, I’ve had enough.” This attitude harms profitability, both theirs and yours.

     

    Causes of complacency

     

    Several factors can contribute to complacency among franchisees:

     

    1. Lack of motivation: It decreases when franchisees are not sufficiently motivated by the opportunities offered by the franchise or fail to see how their work contributes to their growth and that of the network. Note: It must be admitted that if profits are not forthcoming despite all efforts, the motivation for growth will fade away. In such cases, there is no magic solution; efforts must be made to restore profitability or mitigate damages on both sides. Remember the saying, “happy profitable franchisees make happy profitable franchisors.”

     

    1. Routine and monotony: Doing the same thing day in and day out, without variety or challenges, can quickly lead to complacency.

     

    1. Lack of recognition: When franchisees do not feel recognized or rewarded for their efforts, they may feel undervalued and eventually adopt a complacent or even passive-aggressive attitude.

     

    1. Lack of expansion prospects: The lack of expansion prospects within the franchise network can discourage franchisees from further investment. If they believe that there are no opportunities to expand their portfolio or develop their skills, they may become complacent.

     

    Possible approaches to address complacency

     

    Now that we understand the causes of complacency, let’s explore how to effectively address it:

     

    1. Rigorous selection process: It is essential to establish a rigorous selection process for future franchisees, ensuring that they share the brand’s vision and values. Stop selling to anyone who wants it and focus on a genuine selection of your future business partners. It takes time.

     

    1. Assertive and transparent communication: Establish assertive and regular communication with all franchisees. Inform them about your vision, franchise objectives, expectations, and results achieved. This communication approach builds trust and motivates franchisees to become more involved.

     

    1. Ongoing quality training: Provide high-quality ongoing training to help franchisees stay up-to-date with the latest market trends and best management practices. The goal is not just to have training for the sake of it, but to use it to “break” the complacent mindset of franchisees. At all times, growth should be a part of it. Your training LMS alone cannot achieve this; you must be actively involved.

     

    1. Setting clear objectives: Define specific and measurable objectives for each franchisee. Ensure they clearly understand what is expected of them and how their performance will be evaluated.

     

    1. Information sharing: Peer pressure still plays a role in franchise networks. One of the best methods to encourage emulation among your franchisees is to regularly publish the results of each franchisee on important KPIs. Some may say I’m exaggerating, but I challenge you to do it. Transparent information sharing helps set the record straight and can awaken complacent franchisees who believe they are better than others. It’s not easy to be complacent in this kind of network.

     

    1. Recognition and rewards: Implement a recognition and rewards program to celebrate the successes and achievements of high-performing franchisees. Make sure to recognize not only absolute performance but also improvement. Be vigilant, and do not hesitate to create categories, e.g., single-unit franchisees, multi-unit franchisees, etc. This motivates them to excel and encourages others to follow their example.

     

    1. Regular monitoring and audits: Establish a process for regular monitoring and audits to assess the performance of each franchisee. Identify areas for improvement and offer targeted support to help them improve. Stop conducting quality inspections just to fill out the report and turn your audits into business conversations about growth, profitability, and projects.

     

    1. Encourage innovation: Create an environment where new ideas are encouraged and valued. Franchisees who feel free to propose innovative ideas are more likely to remain engaged and avoid complacency. Strive to involve as many franchisees as possible, not just your advisory committee.

     

    1. Flexibility and personalization: Adapt your approach based on the needs and capabilities of each franchisee. Not everyone moves at the same speed; what matters is that everyone progresses.

     

    1. Accountability: Ensure that franchisees are held accountable for their performance and the achievement of their goals. Encourage them to take initiative and be actively involved in managing their business.

     

    1. Support and coaching: Provide ongoing support, including coaching, for franchisees who need it. This can help those facing challenges overcome obstacles.

     

    Conclusion: It’s up to you to keep the fire burning

     

    A picture is worth a thousand words. Imagine a fresh piece of Jello placed on a metal plate. If you shake it, what happens? It moves in all directions but doesn’t progress. If you heat the plate, it will move until you stop heating it. Remember, your best remedy to prevent complacency among franchisees is to keep the fire burning constantly.

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