Aug 1, 2018
Approximately one out of every 12 businesses in the U.S. is a Franchise and this number is expected to grow. With so many new Franchises, it is important to set yours up for success. A key way to accomplish that is by ensuring your Franchisees are happy and continue to be productive. Across the board, three main concepts have proven to be tried and true in accomplishing your Franchisee’s happiness:
Clear Vision: Sending out newsletters, having an intranet, having regional meetings and/or conventions for your Franchisees are great ways to communicate Franchise goals and current information in a positive manner. Fortunately, Franbox allows you to do just that. This system will streamline the process as well as create clear and concise instructions for Franchisees to follow. Not only does this take a lot of stress away from new Franchisees (who often have minimal experience) but also reassures the Franchisor that every Franchisee is receiving the same set of instructions, goals and requirements to be fulfilled.
Open Communication: As a Franchisor it is very important that you listen, listen, listen to your Franchisees no matter how big or small they are. The days of simply telling them what to do are over if you want to survive in today’s rapidly growing Franchise jungle. Listening to the pros and the cons of your Franchise are not only for the benefit of the Franchisee to vent; Franchisee insights can lead to improvements and/or extremely successful tips and tricks that need to be spread throughout the Franchise. Having this two-way communication is extremely vital in order to stay competitive in today’s market.
Measure the Key Metrics: Creating a benchmark for Franchisees to measure themselves is very important and can provide a great reality check as to where the Franchisee is truly ranking (top, bottom, average). This benchmarking process should spark more self motivation among Franchisees who want to rank higher as well as allowing the Franchisor to set rewards for reaching certain goals/quotas. Studies have shown that healthy internal competition can create very substantial results due to the rewarding/enforcement of positive beneficial behavior. It will clearly outline any issues that need improvement and/or any strengths that can be shared and spread throughout the Franchise. Suggested numbers to gather are related to areas such as: weekly sales, hourly rates and revenues, jobs per week and effective labor rates for every owner in the system. It is important to note that what gets measured gets done.
If completed successfully, this Franchisee-centered process should implement a communication chain that will provide a chance for continuous improvements as well as generating healthy bottom lines, which will make everyone happy.