In the common interest of all parties to a franchise agreement, the head of the network must make sure that the candidate will be able to run the business according to the methods and recipes transmitted to him/her, while respecting the network's image and reputation.
While employees have a legitimate right to training, life in a franchise makes the need for training an intrinsic part of the franchisee's job. But rather than a quid pro quo - or even a constraint - inherent to the formula, training must be seen as a pillar in the realization of a network's ultimate promise: know-how-success. To achieve this, the franchisor must follow three key steps.
Knowledge: the operating manual
When offering a comprehensive "manual," it is important to give sufficient (and legally enforceable) substance to the know-how being transferred. Covering all the elements that need to be mastered when launching the business, the manual serves as the framework for initial training, and the brand communicates regular updates to its franchisees.
Designed to be the franchisee's permanent reference point, the operating manual is not only available online, but must also be increasingly responsive and intuitive for digital natives. Franchisees must be able to access it at any time, on tablets and mobile phones, at their bank, suppliers, customers, partners, or among peers. The more user-friendly the tool is, the more franchisees will consult it, automatically reducing the risk of "going off track."
Savoir-réussir: assistance
The evolving nature of know-how requires ongoing training and assistance. The services put in place by the brand, which are fair compensation for the royalties, reassure the franchisee and establish the brand's reputation. Other tools complement and support this approach, such as network head certification, performance monitoring and control software, etc.
The satisfaction and turnover rates of franchisees, the pace of network development (particularly in relation to its direct competitors), and the "procedural ratio" are good indicators of the brand's level of success, beyond more factual elements such as the methods and technical knowledge, commercial processes, financial management methods, and inventory management methods developed by the network head.
By mastering these different parameters, the brand is able to build loyalty among its affiliates: even those who don't reach their forecasts can be supported by their sales manager and the network's partner chartered accountant. The model then becomes sustainable, and the market eventually embraces this new player.
Savoir-faire-réussir: training
The success of a network ultimately depends on the ability of the network head to continuously instill the desired best practices in its franchisees and provide them with the necessary support. Doing so solely through "human" and "in-house" means would be too costly. But in reality, this effort involves various areas, some of which are outsourced: partners who come to give workshops and conferences, accountants who provide management support and highlight additional elements to the coordinator's scope, not to mention the continuous self-learning effort directly managed by the brand and taking shape in the online manual and newsletter. The network will also benefit from entrusting the production of these to a specialized structure that can adapt to changing needs over time.
Through this "extended" or "distributed" system, the franchisor provides its affiliates with support that respects their independence, is non-intrusive but sufficiently "supportive," and is cost-effective and collaborative. These are the characteristics of successful know-how today.
This text is published under the responsibility of its author. Its content is not binding on the editors of Echos de la franchise.
The authors
Nicolas Coutel is one of the driving forces behind the Organized Commerce department at Mazars.
Holder of a professional coaching certification, he has a keen interest in supporting franchisee performance, and in particular in the tools of psychology and the driving forces behind motivation.
Nicolas Coutel is also responsible for rolling out Mazars' Lab Ecosystem in France.
Valérie Guillevic is Managing Director of Amplitude Réso. A lawyer with a post-graduate diploma in law, Valérie Guillevic spent 15 years helping to create and develop a French and then European franchise network with over 90 outlets, before deciding to apply her expertise to franchise and partnership networks.
As head of a consultancy firm for the past 5 years, she brings her skills in network management and development to bear on meetings between brand managers, keen to increase and harmonize their development, and project leaders eager to succeed.
Article published on October 21, 2015 - Opinion column - Les Echos de la Franchise