By Amelia Graham posted November 17, 2020

The Franchise E-Factor has recently been a popular topic in our franchisor training programs. Developed by FRI’s Founder, Greg Nathan, the model describes six stages franchisees move through in their relationship with their franchisor, starting with GLEE where they put the franchisor on a pedestal. The FEE stage involves questioning the value they get for their fees, followed by the ME stage where they ask what the franchisor is doing for them. The next stage, FREE, is the most difficult for both parties as franchisees can start to push back, and an honest conversation to realign mutual expectations may be needed. If this goes well the franchisee will naturally move into the SEE and WE stages, characterised by mutual trust, empathy and collaboration. 

In our Best Practice Insights below we share 10 tips for leading franchisees through the FREE stage. If you’d like to know more about the Franchise F-Factor, we cover it in our professional development programs, or you can read the book by Greg Nathan, who also recently did a fun song about it on LinkedIn.

By the way, we still have some places left in our next Advanced Field Manager Bootcamp which commences next week. If you have completed the Foundation Bootcamp this is a perfect opportunity to participate in some serious professional development to stay at the top of your game. (And yes, we'll be digging deeper into the intricacies of leading franchisees through the Franchise E-Factor journey).

The FRI Team      

1. Best Practice Insights - Managing The Franchise E-Factor

These 10 tips for leading franchisees when they are at the FREE stage were compiled from discussions by a group of 30 senior executives participating in our most recent  Franchisor Excellence Masterclass.
# 1. Revisit mutual expectations, and the roles and responsibilities of franchisee and franchisor, as these can get confused over time.
# 2. Don't assume that profitability is the only thing that matters to a franchisee. Success means different things to different people.
# 3. Remind franchisees that you care about their long-term success. People don’t care how much you know, until they know how much you care.
# 4. Listen to franchisee concerns with empathy. Clarify and paraphrase back what they have said, to reassure them you have understood.
# 5. Don’t get defensive when given honest feedback. Listen with an open mind, and take the time to gather your thoughts before responding.
# 6. Be accountable when something is a franchisor team mistake. Humility and honesty will go a long way to rebuild trust - and you’ll receive it in return.
# 7. Accept that some conflict is normal and don’t take it personally. Persevere and maintain a long-term perspective.
# 8. Consider whether this is a personality clash or something deeper. Sometimes changing the franchisee’s field manager can solve the problem.
# 9. If a franchisee can’t work within the system and makes the decision to exit the business, help them to do so with dignity.
# 10. Remember, franchisees who have worked through the process can be a network’s greatest asset and become great mentors for others.

2. Fortnightly Franchising Fact

Were you aware of The Franchise E-Factor, before reading this Positive Franchising Update? Despite its popularity, recent polls in our training programs show that 43% of franchisor executives were unaware, or only vaguely aware, of this model before the training program. And all were grateful to be exposed to it.

3. Workshops Coming Up

This will be the last opportunity before Christmas for field managers to receive valuable professional development to keep them and their franchisees in top shape as the economy continues to rebound.


Have you completed the Foundation program and are keen to learn more? The Advanced program provides fresh insights into the mechanics behind certain techniques and introduces participants to new and exciting tools and models to enhance their credibility and effectiveness. Participants must have completed the Foundation program so they have a grounding on the models of which this is based.

"I loved this Bootcamp, particularly the psychological and financial concepts we covered. I feel refreshed and motivated."
Chris Thorpe, O'Brien Group

Price: $595 per person. Discounts apply for bookings of 5 or more people.

FRI would like to thank our Program Partners for their support.

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