15 October 2021

    It’s never easy with franchisees

    Running a franchise network is a bit like being the captain of an airplane squadron. Each franchisee pilots his plane but follows the general instructions of their captain.

    When I hear it’s never easy with franchisees, I really hear I don’t know how to get them on board and follow my lead.

    When asked, here are the 3 other top reasons why franchisees do not follow or challenge their franchisor’s initiatives.

    1. The franchisor thinks that its network is a big family

    A franchise network is a team that must be run as such and not as a family. By fostering a family mentality, the franchisor unassumingly creates a paternalistic relationship with franchisees. This relationship creates dependency because it infantilizes franchisees instead of empowering them.

    WHAT TO DO
    Therefore, the franchisor must instil team spirit to develop the levers that will facilitate relationships and the achievement of objectives.

    2. Franchisees are not making money

    ROI should be a daily concern in a franchise network. However, franchisors tend to focus on sales and leave profitability in the hands of franchisees. As a result, those who do not perform develop animosity and resistance towards the franchisor. This slows down the entire network and, above all else, the growth of the franchisor.

    The ROI of a franchise must be a shared responsibility. Everyone has a role to play in the equation of economic success. It is often negligence that leads to the failure of the business project, and this, from the get-go.

    WHAT TO DO

    1. It is necessary to set up a “live” management information system to know the key variables of the franchisees’ profitability instantly.
    2. Regularly focus with franchisees on their performance and ways to improve.
    3. Improvement must be rewarded.
    4. And, do not hesitate to intervene quickly if the situation deteriorates and take necessary action.

    3. The franchisor does not care about the state of mind of its franchisees.

    The success of a franchise network depends on the success of its franchisees. But what is success? Success is not only economic. It is very much due to the state of mind established within the network. Thus, the franchisor must be concerned with the personal development of franchisees and allow them to become better CEOs and better leaders. This is how the franchisor will be able to count on their contribution and ensure long-term success.

    WHAT TO DO
    In my opinion, training on “soft skills”, peer groups and coaching are fundamental tools that in today’s franchise universe represent an added value with very high potential.

    Conclusion

    The franchisee’s commitment is never automatic and may vary throughout the relationship. However, it is up to the franchisor to develop the culture of commitment by acting on its own initiative and offering its franchisees the answers to their needs.

    Okay, agree or disagree, let me know! (Comment, this feed is a live debate.)

    And if you encounter issues that you would like to discuss with an expert who knows your reality since I have lived it as a CEO, I would be more than happy to do so.

    Connect privately with me for a free strategic brainstorming session!

    No sales, just a session to think together and get to know each other.

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