Franchisors, Increase Franchisee Success and Retention

The Keys to Franchisee Success

Quality, consistency, profitability, customer service and satisfaction are all key metrics of franchise health. However, arguably the most important ingredient for achieving strong results in those metrics is missing from nearly every volume of the franchise training manuals.

What is it? It’s a real moving target, some get it and some don’t. That ultimate ingredient is actually Business “Know How”. Not the everyday fill out forms, track orders and check in workers know how, but the real guts of running a successful franchise by hiring and motivating your teams and knowing how to plan, anticipate and respond to those stress inducing situations all franchise owners will face.

Without possessing the “Business Know-How” ingredient a franchise operator can easily get trapped into a downward spiral of lower sales, productivity, and profitability resulting in even lower customer satisfaction and employee morale.

Key Ingredient Part I:  Leadership Capacity

Franchises satisfy countless product and service solutions in the marketplace. Whether customers come to their store or they go to the customer’s locale, the quality of the product and level of service is a continual focus for franchisors.

While headquarters provides ample training and support on the systems, equipment, processes and tools, one critical component of customer satisfaction and unit franchise profitability that gets overlooked is leadership capacity.

In their recent employee engagement poll Gallup reported that 52% of workers are in what they call the “not engaged” category – “those who are psychologically unattached to their work and company and who put time, but not energy or passion, into their work.

Not engaged employees will usually show up to work and contribute the minimum required. They’re also on the lookout for better employment opportunities and will quickly leave their company for a slightly better offer.

Franchisees will continually struggle against their competition if all they get out of their workers is “the minimum.” That’s where leadership capacity comes into the picture.

A major contributing factor to worker’s lack of engagement is directly linked to the relationship the worker has with their supervisor.

That relationship grows over time through a myriad of intertwined connect points as a result of team meetings, break conversations, customer interactions, performance feedback sessions, and group/individual reward and recognition.

The Business Clinic offers a comprehensive Leadership Capacity Program (LCP) designed for franchisee success.

LCP Training consists of several modules designed to help those in a leadership role to learn and grow their leadership capacity.

The training is effective at all levels of leadership, from the store owner, store manager, shift supervisor, future leaders, etc.

Focused training on developing and expanding their leadership capacity will positively impact the way a manager engages and leads his/her team, and ultimately that franchisee’s performance in those key metrics.

Key Ingredient Part II: – Operating a Business

Many unit franchise owners have come out of the executive ranks of corporate America and bring many skills useful in a corporate environment.

Other owners may have been independent contractors working in a trade who’ve discussed the desire for a business model coupled with independence.

Regardless of career background your owners can become highly successful by following the training, process and procedures you provide.

Unfortunately, there are always a certain percentage of franchise operators who struggle.  Some discover that the franchise does not fit them and truly need to move on.

It’s those other franchisees who seem to need extra help in fully understanding what running a business is all about and how all the pieces fit together that we should focus on helping.

It’s almost always better to have happy franchisees remain in your system than try to find a replacement plus it looks great in your FDD to show almost everyone stays in the franchise.

Sometimes, their problem is just having the mental discipline to get up and be there on time and getting things completed when needed and not procrastinate.  Other times, they have not developed the mindset of the entrepreneur where you are the guy responsible for everything.  Most want to be successful but do not know how.

They have not taken responsibility to make their business a success.

The range of issues that hold back certain operators generally revolves around time management, leadership skills, self-control, motivation, core business skills including people management and motivational skills.

In some cases, they may need better sales skills than they get in the franchise onboarding program.

In other cases, there are operators who appear to be an excellent fit when engaged with the business development team.

However, after the grand opening their true persona appears with what one could only describe as a toxic personality and are tone deaf to their local support team as well as their employees.

Our Programs Solve These Operational Problems

We have employee, manager, leadership and sales skills programs ranging from those totally customized for an individual to short group training exercises that ‘spoon feed’ new ways of thinking and add new skills.

This flexibility allows us to provide exactly what is needed, fit within budget constraints and help your franchise owner.

Shouldn’t we be talking about how to increase your franchisee retention and success?