Franchising is all about commitment - being dedicated to a mutually beneficial relationship, making a long-term investment in a business, being loyal to a brand, and doing what you say.
In this Positive Franchising Update, we share new data on why franchisees do or don't want to commit to staying and investing in your network. We also share 10 practical insights from a team of field consultants on how to get franchisees to commit time, energy and resources to important initiatives.And for those franchisor executives committed to their professional development, you'll find information on three workshops, specifically designed for field managers, senior franchisor executives, and support office teams. We have timed these to be suitable for people in Australasia and the USA. We hope to see you in one of these sometime. Feedback from participants clearly tells us these new virtual formats really do work a treat.
Last week we were privileged to co-host with the Philippines Franchise Association, what we think, is a world-first public virtual Franchisee Summit. The three-hour program attracted 2,940 registrations from over 120 brands all over the world. It featured FRI's Founder, Greg Nathan, who talked about the Franchisee Wheel of Excellence and then interviewed three outstanding franchisees on the secrets to their success. The Summit was a phenomenal success with 98% of attendees agreeing that it would help them improve their performance to a high degree.
A common frustration we hear from franchisor teams is that franchisees don't commit enough time, energy or resources to take action on important initiatives. This week, in one of our Bootcamps, a talented team of USA field consultants explored the question of how to improve franchisee commitment to taking action. Here's what they came up with.
# 1: Trust is key. Ensure you have first built a trusting relationship with your franchisees. No one will commit to action if they don't trust you.
# 2: Measurable actions. Explore and agree on how the results of any actions will be measured. Feedback on results is a powerful motivator for positive action.
# 3: Tangible benefits. Agree on what tangible benefits would come from taking action. These should preferably be linked back to things that matter to the franchisee.
# 4: Impact on network. Connect how the actions will also benefit the entire network. For instance, how it will enhance and protect the reputation of the group.
# 5: What's behind the actions? Ensure that you fully understand the ‘why’ behind why they should take action, so you can clearly explain this.
# 6: Communicate clearly. Communicate key timelines and milestones to get to the end result. If timelines change, ensure you keep franchisees informed.
# 7: Small steps create big things. Agree on small steps that are actionable within the franchisee's workload. Breaking it down helps the action to not appear overwhelming.
# 8: Draw on others. Draw on other franchisees who have taken action and achieved positive results. And facilitate sessions to help them share their experience and ideas.
# 9: Involve franchisees. Involve franchisees in pilot testing in the early stages to generate a sense of ownership. And seek feedback on how things can be improved.
# 10: Train and equip your team. Train and equip franchisees with the skills to succeed in taking the required actions. Inaction often comes from a lack of know-how, as well as no how!
One unique feature of our interactive Field Manager Bootcamps is our focus on Action Learning, where we help participants create actionable insights. Our programs are timed to suit Australian and USA field managers and participants will be eligible to earn up to 320 CFE points.
FRI's current franchisee satisfaction survey benchmarks show that while 45% of existing franchisees have an appetite to invest in additional units, 25% are looking to exit their network. Further analysis to understand the biggest driver of these two intentions reveals that it all comes back to initial expectations.
For instance, franchisees who felt misinformed about working capital requirements, or the ramp-up period to achieve profitability, are unlikely to invest in additional units and are more likely to want to leave your network. The insight here is that being upfront and helping franchisees to start their business journey with realistic expectations will help you to retain your franchisees in the long run.
Our ACE Franchisee Satisfaction Survey helps franchisors gain useful scientific insights for improving franchisee advocacy, commitment and engagement. To discuss how many leading franchise networks take advantage of this service, contact us today.
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