Franchising is an easy route to business growth, right?
Throughout my own business journey I’ve heard this comment thrown around in conversation more than just once. Speak to any franchisor however and they will confirm that franchising is most certainly not an easy ride. Taking the route of franchising a business and growing a franchise network is definitely not for the faint-hearted. It requires vision, strength, creative thinking and a great deal of persistence and resilience. Most franchisors won’t be frightened to admit that they will have made mistakes along the way and, whatever the size of their franchise network, a good franchisor will be continuously learning from their franchisees, their customer base and from those around them to keep their brand and franchise network moving forward.
For a franchise brand to find success, it’s crucial to get the basics right from the outset. Focus on these 4 R’s of franchising and, whatever lies ahead, you’ll be setting out on the path to successful franchising with your best foot firmly forward.
Recognise who your ideal franchisee is
It might sound obvious but this is a step often overlooked by new and enthusiastic franchisors. They want to shout out to the whole world about their exciting new franchise opportunity and to sign up as many new franchisees as possible, as quickly as possible. But if a franchisor takes time to draw up an Ideal Franchisee Persona, recognising the traits and skillset that their “perfect franchisee” will have, then this arms them with an invaluable tool for successful business growth. Firstly, knowing who your target franchisee is and where they are hanging out in real life and online, means that a franchisor can target their marketing and awareness-raising activities effectively, hence saving valuable time and money. And crucially, it avoids bad recruitment decisions. Which takes us on to the second R……..
Recruit the right people
Most franchisors will be able to recount a scenario where a franchisee hasn’t worked out. They may not have been the right fit for the brand, may have lacked the right qualities or ambition to drive the business forward, or something more serious may have arisen. In such cases, where the situation cannot be remedied or the franchisor-franchisee relationship has deteriorated to an irreparable extent, the key is to manage the exit of the franchisee without causing damage to the brand or the franchise network. That is why recruiting the right franchisees who are a great fit for your brand is the key to successful and sustained franchise growth – and that’s where your Ideal Franchisee Persona comes in. In the early stages of franchising, often when a budding franchisor has invested significant amounts of capital in getting the business franchise-ready, it can be tempting to bite off the hand of the first investor who comes along. But hasty and ill judged recruitment decisions can prove to be extremely costly mistakes – one bad apple can have significant repercussions for the whole brand.
Recognise and retain
Great franchisees are a franchise brand’s best asset. Passionate and engaged, they will attract loyal customers to their business and the overall brand and be a real cornerstone of successful growth. Their success stories will also become a valuable marketing tool for the franchisor going forward. Would-be franchisees are naturally much more likely to make the decision to invest if they see others further down that path doing well. Part of a franchisor’s successful long term growth strategy must be to ensure that the existing network are supported, that systems and procedures are in place to ensure that they can run and grow their businesses efficiently and successfully, and that they feel listened to, appreciated and recognised for their efforts, in whatever style and way suits the network and the brand. The phrase “Your people are your product” is most certainly true.
Reach out
In any of the mentoring chats and discussions that I have with new and emerging franchisors, “reach out and seek support” is one thing that I emphasise again and again. The role of a franchisor is a unique one and, whilst incredibly rewarding, it comes with a set of challenges that only fellow franchisors and others involved in the franchise industry can really fully understand. Wherever you are in the world there are franchise organisations, such as the British Franchise Association over this side of the pond, who can offer a huge amount of specialist advice, networking and development opportunities. The franchise community as a whole I have found to be welcoming and supportive, both online and in real life. Wherever you are in your franchising journey, having a network of franchisors from whom you can seek advice and support, as well as absorb inspiration from, can be one of the most valuable assets of all.
Read the full article here
