In my last post(which you can reread by clicking here), I mentioned the first three of six characteristics that, in my opinion, distinguish franchisors whose success in franchising can be described as exceptional.
Here are the other three:
4. Strong leadership that listens
Like any business, a network needs solid, reliable leadership to focus its efforts in the same direction.
On the other hand, in franchising, this leadership must remain attentive to franchisees' information, viewpoints, comments and suggestions.
In fact, franchisees are the network's antennae for its customers and its market, and also those in immediate contact with everything that goes on in the network's outlets and in their respective markets.
As entrepreneurs and business managers themselves, franchisees also have a wealth of experience and knowledge to share with the network.
While preserving and fully assuming its leadership role, to increase and sustain the growth and improvement of its network, a highly successful franchisor knows how to quickly gather and channel the knowledge and skills of its franchisees to benefit its entire network.
5. Deserved confidence
After an initial honeymoon period of a few months, a franchisee's level of trust in his franchisor often tends to fade, due to a certain discrepancy, real or perceived, between the franchisor's interest (in constantly increasing the number of outlets in his network, maximizing their sales and growing his franchisee revenues) and that of the franchisee(in maximizing the profitability of his outlet).
A recurring characteristic of franchisors who succeed well beyond the average is their ability to maintain a high level of trust from their franchisees, despite this gap between their interests and those of their franchisees.
This doesn't mean that their franchisees always agree with the decisions made, nor are they always happy with the actions of these franchisors, but that they are convinced that the franchisor's actions and decisions take into account the interests of the network as a whole, just as much as or, for the best franchisors, even more than their own interests.
In fact, exceptionally successful franchisors understand(not only intellectually, but also in their decision-making and management processes) that their medium- and long-term success is interdependent on the success of their franchisees.
One of the direct effects of these franchisors acting consistently and continuously in the interests of the network as a whole is their ability to maintain a high level of franchisee confidence, which plays an important role in their franchising success.
6. Organization, planning and discipline
It's impossible to successfully manage a network of businesses(especially when each one is owned and operated by an independent entrepreneur) without a high degree of organization, planning and discipline on the part of both franchisor and franchisees.
Also, a sixth characteristic of successful franchisors is their high degree of organization, planning and discipline.
This characteristic can be seen in every aspect of their network management, from the selection process for new franchisees to the way they act in the event of a dispute with a franchisee, or with a franchisee experiencing difficulties(financial, management, personal or other).
Successfully managing a franchise network therefore requires unparalleled management and communications skills and resources, as well as tools, systems, plans and documents that convey the network's standards, rules and procedures to franchisees, and enable them to apply them rapidly and in a structured way as soon as the need arises.
Please contact me by e-mail at: jhgagnon@jeanhgagnon.com or by phone at: 514.931.2602 if you have any questions or comments.
Jean H. Gagnon, Ad.E.
Lawyer | Mediator | Arbitrator
