Traits That Make Great Franchisors Great Leaders 

picture1.jpgFrom professional athletes to high-tech programmers, every career requires different talents. However, what makes a career in the franchising industry different is that the skills to successfully lead do not have to be acquired through rigorous training or years of schooling.

Instead, success in franchise leadership can come to anyone who is determined, dedicated and willing to invest in their personal development—and will pay off tremendously by developing a network of franchisees who respect your leadership traits. Below are the skills a franchisor should focus on to become great leaders and successful business owners:

  1. Consistency: As a franchisor, your franchisees will be looking up to you. Being consistent and following through on your word will let them know that they have a leader they can count on.
  2. Planning: Your franchisees are invested in the business, so it’s natural that they will want to know where it is headed. Make sure to plan ahead and share your vision with your employees, too.
  3. Support: As a franchisor, everyone in the organization is your team member—meaning you have a vital role as a pillar of support and encouragement.
  4. Positivity: Focus on creating a positive space for your franchisees. This will help strengthen your bond and let them know you have their back.
  5. Respect: Every franchisee makes mistakes—it’s just a part of the business. Making sure your franchisees know you still respect them even when they slip up will go a long way.
  6. Face Time: You can’t be expected to visit every franchise location every day. However, the occasional drop-in will help you learn more about the day-to-day operations and struggles of each individual location—and let them know you’re invested in solving their problems.
  7. Passion: Franchising means getting to work with talented, passionate colleagues who love what they do. Believe in the brand and believe in your franchisees—your passion will shine through and inspire them, as well.

If you’d like to learn more about being a franchisor and building a successful business, contact Franchise Foundry today.

 

QSR & Pizza Fueling Franchise Growth

Fast-Food-2Each year the International Franchise Association commissions a study from PwC (PricewaterhouseCoopers) on the economic impact of franchising in the U.S. Highlights from that study include the following:

  • Taking into account the indirect impact of franchised businesses, business format franchises support more than 13.2 million jobs, $1.6 trillion in economic output for the U.S. economy, and 5.8 percent of the country’s GDP.
  • Franchise businesses provided more jobs in 2016 than wholesale trade, transportation and warehousing, nondurable goods manufacturing, and information (including software and print publishing, motion pictures and videos, radio and television broadcasting, and telecommunications carriers and resellers).
  • Quick service restaurants (QSR) is the largest category, representing 25 percent of all franchise establishments and 45.5 percent of all franchise jobs.
  • Jobs supported because of franchise businesses were at least 10 percent of the private sector nonfarm workforce in 33 states, and at least 6 percent in every state.
  • The number of people employed by franchises is greatest in California, Texas, Florida, Illinois, and Ohio.
  • Franchisees own and operate 88 percent of all business format franchise establishments and franchisors own and operate 12 percent.

Read more…

Quick Serve Franchise Sector Continues to Blaze a Trail for Franchising

There is little doubt that the franchise industry is undergoing significant changes fueled in great part by the success of various PE firms that began in the QSR sector. As other franchise sectors are targeted by PE investors, the competitive environment in those sectors will become more challenging. In order to prepare for these challenges, small to medium sized franchises will need to become successful franchise systems that produces sustained system growth, successful franchisees and an efficient operating system.

Multi-unit franchisee ownership that originated in the QSR sector continues to increase as franchisors seek large multi-unit franchisees that can own and operate more franchise units.This ownership model provides organizational stability, ample financial resources, sustained growth and economies of scale to the franchisee operation.

Read more…

Who’s Winning the Pizza Wars?

Welcome to the pizza wars, where brands big and small, quick-service and fast-casual alike face two choices: pick up the pace and earn relevancy through definitive, clear marketplace differentiation or step aside.

Read more…

 

 

POSITIVELY MEMORABLE EXPERIENCES – THEY’RE NOT JUST FOR CUSTOMERS! (Part 2 of 2)

Moving the Positively Memorable Experience Forward

Just like at many of the hotels mentioned in the search results on TripAdvisor.com, there must be clearly defined criteria — a filter of sorts — that every customer, and in this case, every franchisee, must go through at every stage of the relationship and on a daily basis. This is essential to creating positively memorable experiences. Here are five tips that will help move toward this end.

Understanding the true meaning and spirit of interdependent franchise relationships. This must be shared and exemplified at every point of contact with franchisees.

Image result for the right cultureDeveloping the right culture at all levels. Be careful — culture is also defined as bacteria. This takes time and commitment, and is a reflection of how people, whether franchisees, employees, suppliers or others, are treated at all times.

Creating an environment of truth, trust and transparency based upon open, two-way communication — the cornerstone of creating the right culture. Think of a three-legged stool that could hold a great deal of weight when fully intact, yet would immediately fall under its own weight if one leg was compromised.

Establishing your franchise system as family. Treat them as such, but understand that this is not the typical type of family of yesteryear with subservience to the head of the household. Mutual respect is paramount.

Building an environment of bottom-up profitability and growth with all parties to the franchise agreement and other related agreements focused on mutual goals and objectives. All must sing from the same hymnal, and not just for dress rehearsal; be sure to give them the hymn book.

Certainly, validation and multi-unit ownership are strong indicators that positively memorable experiences exist within your franchise system. Another way to confirm the existence of these experiences is simply to ask your franchisees: Would you do it all over again? However, as a franchisor you must first earn the right to even be taken seriously if you ask this question. That starts and must continue by consistently working through the criteria identified above.

As you head down the path of creating positively memorable experiences with each franchisee, be sure to consider all touch points, even those beyond the obvious mediums of in-person, by phone and via email. Think digitally. How do you interact with franchisees on Facebook? How do you come across to your franchisees in LinkedIn discussion groups? Is there common courtesy? Are you proud of each other’s actions within these platforms?

Many will refer to all of this as being great in theory, and not really practical. But just think what could happen if every touch point were seen as another opportunity to create or enhance positively memorable experiences. How would that change the culture of your system? How would that lend credibility toward growing your brand? Think of the ripple effect.

Live it and breathe it every day for optimum results!

This was originally published in Franchising World September 2014