A good recipe needs the right ingredients.
I’ve been in franchising for a long time (30 years and counting) and it has taught me many things – not least I’ve learnt that there are FIVE critical ingredients to cooking up a good franchise – business system, recruitment, support, communication and vision.
Get these right and you have a recipe for success.
Business System
The essence of a franchise is that it gives anyone and everyone an OPPORTUNITY to own a business and by following a tested business system to be successful in that business – so being in business for yourself BUT NOT by yourself.
The franchise provides access to the all-important brand, but more than that, the franchisor is there to provide experience and know-how within a proven business system that has been created, tested and made robust. Moreover, the system is (or should be) continually monitored, be responsive to market changes and improved.
So, the business system is the cornerstone of the franchise model.
as well as ongoing support by way of marketing tools, website, social media, procurement management, sales training, technical guidance and of course a corporate identity and trademarks.
Recruitment
A franchise is only as good as its franchisees. And franchisees are only as good as the recruitment process.
It is NEVER the fault of the franchisee if they are allowed into the system and then struggle. If a franchisee turns out to be ‘not right’, then something has been overlooked in the recruitment phase.
Do franchisors ‘get it wrong’ on occasions? Yes, we do. At the end of the day we are all human and sometimes despite best intentions you miss a signal you should have pick up.
But what is important is to have a system, a process, a structure for recruiting franchisees and to stick to your principles – even in the face of ‘easy recruitment’ because someone comes along as a ‘cash buyer’.
All franchisors should have what I call an ‘attribute template’ detailing the sought-after characteristics of would-be franchisees.
Different franchisors will have different a different ‘attribute template’ but at The Bardon Group, I am looking for people who are disciplined, organised, hardworking, and energetic, with good people and communication skills.
More than this, I want to determine if they will listen – which is vital because franchisees need to be able to follow the system, take advice and learn from others’ experiences as well as their own.
Support
Hopefully, a good recruitment process will get you good franchisees. But it’s through ongoing support that you will help them grow their business.
Franchisors’ support structures vary depending on the size of the organisation but should include marketing systems and tools, website, social media, procurement management, sales training, operational support, technical guidance and of course a corporate identity and trademarks.
Franchisees may or may not choose to take full advantage of the systems, tools and collateral on offer. However, as a franchisor it is your duty provide support that you believe will add value to the business and help the franchisee to grow.
Communication
Personally, I remain adamant that on-going communication with franchisees is the most critical factor for success. A good, strong relationship (aka marriage) between franchisor and franchisee is absolutely fundamental to the creation, development and ongoing success of the franchise and clear, regular and informative communication should be the cornerstone of this relationship.
I am a great believer in one-to-one visits with franchisees and over the years have dedicated around two days per week to ‘getting out and about’.
Personal visits help to build and strengthen the bond between the franchisee and the team of support staff.
However, visits are not enough in themselves. They need to be supplemented with regular newsletters, phone support, business planning meetings, regional get-togethers, annual conferences and an intranet system.
All of these have their place in the pantheon of good communication.
Vision
A good franchisor needs to have a vision of where the business is going and how it will get there. They should be leaders, constantly on the lookout for new business opportunities and additional revenue streams for the franchisees.
I remain steadfast in my belief that successful businesses develop multiple income streams.
Finally, franchisors need to act as mentors, providing guidance, experience, knowledge, intellect and support.
WARNING: running your own business can be lonely; owners can feel isolated.
A key function of the franchisor is to ‘be there for you’.
The key to a good dish is buying the right ingredients and then using the recipe to mix them in the right quantities.
To bring out the best in these franchise ingredients, a franchisor should lay out a recommended route plan that the franchisee can follow but allowing the franchisee the freedom to run their businesses for themselves.
It is not my job to TELL the franchisee what to do.
It is my job to provide a structure (a route map if you like) and a range of tools to help the franchisee navigate the route successfully and to be there with support, guidance and advice along the journey.
Combine this with hard work, energy, good decision making and a little luck and in time you’ll develop a robust and resilient network of franchisees that inspire you as much as you inspire them.