It is that time again where people set goals to try and do better and achieve more for the upcoming new year. As a franchisor, this means a little bit more because most decisions you make will have an impact on franchisees. So if you haven’t set any objectives for your franchise yet, here are 10 resolutions that could make its way into your list, towards a better system.
Related: The History Of Franchising
1. Stick By Integrity
Integrity means doing what you have to do on your part as a franchisor, fulfilling your contractual responsibilities to franchisees. It also means doing what you say you will, when you make promises to franchisees. Breaking your word will likely break their trust in both the franchise system and you too.
2. Don’t Be The Problem
Franchisees already have enough problems on their own — rising costs, employee turnover, attracting customers — pretty much the same you are experiencing in your own corporate-owned stores. And as franchisees, they have the added expense of recurring franchise-related fees (i.e. royalties) so it's not an easy ride for them. Before planning and implementing something new, step in their shoes and think how it will affect their operations and bottom line because that’s what they will be looking at with every new change you make.
3. Close The Doors On Unsuitable Or Unqualified Franchise Candidates
It takes courage to reject money when it comes knocking on your door and in franchising, this comes in the form of prospective franchisees. While there will be enquiries for your franchise, not all will be made from suitable or qualified candidates and letting this particular group of candidates into the franchise system could have a lot more disruptive consequences than the initial financial benefits that come along.
4. Stop Thinking That Franchisees Only Want To Make Money
If money was the only thing franchisees wanted, they wouldn’t have joined your franchise in the first place because there are so many other less-hassle options available, such as investing in stocks, properties or even something as straightforward as a trip to the casino. Most franchisees actually want the experience of owning and operating a business themselves and the fact that they chose your franchise shows their belief in your brand and methods. Thinking that they are just money grubbers is insulting.
5. Be On Target With Timelines
Franchisees did their part by putting up the franchise fee payments and required investment capital. Now its your turn to do your part and do whatever it takes to help them have their business ready to make that money back, and more. The worst start you could make is to miss the planned opening date for the franchisee’s business because it might imply you didn’t dedicate sufficient resources (i.e. time, support staff, etc.) or you simply overlooked certain details. Either way, franchisees could be thinking you just didn’t care because you already got what you wanted — their money.
6. Don’t Rule With An Iron Fist
When there are at least two parties involved in a relationship, disagreements are inevitable so don’t be under any illusions that your relationship with franchisees will always be full of sunshine and roses. When disagreements arise, take a step back and see from the franchisees’ perspective. Try to understand where the unhappiness is coming from and more importantly, whether it is warranted.
7. Have An Ethical Approach
Franchising should be adopted as a method of expansion only when your business is ready. Meaning to say, you should have all the tools, knowledge and experience to mentor and support franchisees to reach the same successful levels you achieved. And if you don’t, perhaps it is time to go back to the drawing board and figure out what you can do to improve the system. It makes no sense if they are paying for your assistance and yet the both of you are stumbling through together.
8. Offer A Marketing Program
Marketing in today’s environment is not like before. Now, how a product is packaged and presented is just as important as the quality of the product itself. In other words, a previously superficial aspect is now a major one that contributes to how today's consumers make purchase decisions. Besides, if franchisees are able to implement successful marketing campaigns, chances are sales revenue will also go up, and in return, the royalties submitted to you will also increase. If marketing isn’t part of your franchise support, you should really think of changing that.
9. Don't Be Lazy During Information Gathering
Every country or territory could have their own specific set of franchise regulations that the industry has to abide by. Having all the necessary information and knowledge will help you to figure out what you need to do and what you might want to do, in order to operate as a franchisor. And this is especially so when regulations could determine whether you have any right to franchise your business in a particular location in the first place.
10. Optimizing The Franchise Pitch
The franchise pitch to franchisees is more than just a presentation of what your franchise is about. The session is to reinforce belief that your franchise concept is what they had been looking for and convince them to invest in your system. Surely, the financial benefits for franchisors is apparent so you really don’t have a reason to be nonchalant about optimizing an effective and efficient experience for candidates in order to attract and convince them to join your system.