In a previous article(which you can reread by clicking here), I reported on the results of research into the character traits of successful franchisees.
Many of you have since asked me the following question: What about franchisors now?
Are there any traits that distinguish successful franchisors?
I think so.
However, as a successful franchisor takes the form of an organization rather than a person, the founder's character traits must eventually become distinguishing features of the entire franchisor organization, and not be diluted and lost as it grows.
In my experience, six characteristics distinguish franchisors whose franchising success can be described as exceptional.
Here are the first three(the other three are for my next article):
1 - A truly contagious vision
Unfortunately, the term " vision " has come to be used in so many different ways that it sometimes loses its real meaning.
Franchisors who have been exceptionally successful have, more clearly than their competitors, seen an unmet need, or a gap in the way it was being met, and a way to meet it more profitably.
However, having a vision is not enough to become an excellent franchisor: this vision must also be shared.
Unlike the entrepreneur who implements his own vision through his own business, which he manages in his own way(and according to his own vision), the franchisor must recruit franchisees who adhere to and share his vision. This is a characteristic of successful medium- and long-term networks, which can sometimes even resemble a form of cult(in the positive sense of the term) in terms of the level of adherence of franchisees to the franchisor's vision.
2.- A shared passion
Exceptionally successful franchisors demonstrate a boundless passion for their concept, their network and their franchisees.
As with vision, a franchisor must be able to transmit this passion(often by example) throughout his network, so that it drives his franchisees as much as it drives him.
We can see the importance of this trait by examining the case of franchisors where it is lacking.
For example, when a franchisor appears to be motivated solely by profit, or when a successful franchisor is acquired by a large company or a company with a predominantly financial focus(e.g., a venture capital firm), there is often a slowdown in the growth of the franchise network, and significant difficulties in franchisor-franchisee relations.
Yet these organizations generally have excellent managers(often far better, in terms of management skills, than the franchisor's previous managers).
So what ingredient are they missing to keep the franchise network growing? Passion!
3.- Clear, consistent, well-communicated values
Another trait of highly successful franchisors is the presence of clear, consistent and well-communicated values(especially to franchisees and suppliers of products and services).
First and foremost, these values must be real, not just theoretical.
It's easy to write a code with beautiful values(for example, open doors, integrity, respect, humanism, etc.).
On the other hand, if these fine values are not the ones that really guide the franchisor and his network in their decisions and actions every day, they will have no impact, at least a positive one.
Franchisors who achieve above-average success have values which, although not always written down, are clear and well known to their franchisees, managers, suppliers and other collaborators.
These values enable each participant or collaborator in the network to better anticipate, understand and share the franchisor's decisions and actions.
They also represent a reassuring, unifying element that helps maintain strength and coherence within the network.
In a future post, I'll discuss the other three of these 6 characteristics which, in my opinion, distinguish franchisors whose success in franchising can be described as exceptional.
I invite you to contact me(by e-mail at jhgagnon@jeanhgagnon.com or by phone at 514.931.2602) if you have any questions or comments.
Jean
P.S. Unless you have already done so, I invite you to join the " Franchise Law "group on LinkedIn, which you can do simply by clicking here.
Jean H. Gagnon, Ad.E.
Lawyer | Mediator | Arbitrator
