Do you want stellar validation from your franchisees? It’s Easy! COMMUNICATE!
Franchise companies are often perplexed by negative remarks from their franchisees during the candidate validation process. Unhappy franchisees are more detrimental to the franchise system than any other threat. Preserving the reputation of the brand is paramount to a healthy, thriving franchise system and like it or not, your franchisee’s opinions are the lifeblood to growing the brand.
When it comes to knowing what franchisees are thinking, feeling and saying to franchise candidates, it sometimes feels like it requires a mind reader, a psychic or a supernatural power. Peter Druker, the inventor of Management by Objectives asserted that, “The most important thing in communication is hearing what isn’t said.” How can we know what isn’t being said?
Franchisees and franchisors rarely agree because each one approaches franchising from different perspectives. It becomes problematic when the franchisor believes they are making the right choices for their system and the franchisees believe that the franchisor is out of touch or worse, disregards their franchisees’ opinions and insights.
The successful franchisor knows that great validation requires frequent, comprehensive communication with every franchisee..
Steps for Improvement:
Step 1: Franchise Development. Communication channels are initiated the sales development process by managing the candidate’s expectations in every area of the franchise business. So, tell the truth, the whole truth and nothing but the truth. Be certain that the brokers and sales development team represent the vision of the founder and your franchise accurately. Remember, that the home office employees are stakeholders once the candidate becomes a franchise owner. The staff supports these owners for years, but the sales team only a few months. It is imperative that the communication channels be open and active for the support team to know what Know what your sales team is selling.
Step: 2. Staff Meeting. Communication about expectations and realities must flow multi-directionally to and from the Franchise Development Team to the Operations Team, Orientation Team, Marketing Team and Sales Team. The best staff are not able to support unfamiliar products and services. Lack of communication with the support team on new offerings erodes the trust of the franchisee in the franchisor. How can they trust the home office if the home office does not know before the owner?
Step 3: Educating Home Office Support Team. Inexperienced franchisors typically begin franchising with existing staff from the first location as the home office staff. While the specific knowledge these valued team members contribute is vital, it does not necessarily translate to a good corporate employee. It is common to find tenured employees in high positions of responsibility with the franchisor who do not know, understand or maybe even care what validation means to the company. Task driven employees typically make good unit employees but may not translate to an understanding of franchising, the big picture or the partnership of franchisor and franchisee. It is possible that these employees may develop an authoritative attitude of employer rather than partner toward your franchisees. Which often leads to dissatisfied franchise owners.
Step 4: Orientation and First Impressions with New Owners: During the sales process, the franchise candidate has been in frequent, regular communication with their sales person. Once the candidate signs the franchise agreement, this contact ceases leaving the new owner feeling abandoned and adrift. Franchisors must replace that contact immediately. New franchisees are excited and terrified about their decision to invest their life’s savings and need an immediate focus for this energy. It is vital to have a process in place to engage the new owner into the culture of the company, manage their expectations, direct their energies and provide appropriate tasks for the transition period between signing and opening.
Providing a task list with specific responsibilities that can be completed and checked off provides a psychological boost of accomplishment. The positive feeling associated with completing tasks correctly generalize to a feeling of confidence that they made the right decision and will be successful. These feelings are reinforced as they learn the franchise model and helps to make the new owner a coachable, engaged and happy owner.
Initially, having a single point of contact alleviates the stress and tension of the unknown. The owner quickly comes to respect this person and bonds with them. In the future, the person who originally decreases their anxiety and can talk them down when needed becomes their confidant into the future.
Their first impression of the franchisor is one of support and liking that will continue long after the orientation process has concluded.
Step 5: Business Intelligence. Franchisors have access to the best business intelligence through their owners and the franchisor can have it free. All the franchisor has to do is listen to their owners. Failing listen to their franchisees signifies to the franchisees that they are not a partner and their input is irrelevant and inconsequential. Actively soliciting the counsel and advice of your owners increases their satisfaction and they are less inclined to be negative about a franchisor who takes their advice.
Step 6: C-Suite Conversations: The best, easiest, fastest and most economical avenue to dramatically improve franchisee satisfaction and therefore, validation is to have one-on-one conversations with the C-Level executives and the owners. Like all customers, franchisees want to be heard and believe they have paid for that right. A quick telephone call just to check on your owners will substantially improve validation without having to ask for it. Pick up the telephone and make the call to an owner who is feeling less than great about their units’ sales or if they have a personal issue. Addressing the small issues keeps them from growing into big problems.
Franchisors and franchisees share the same goal, to be a successful. In franchising, working together for the good of the system is important as is working for the best for the individual franchise. Either way, franchisee and franchisor are dependant on one another for not just survival but success. Druker had it right, what is not communicated creates a chasm. Communicate and alleviate virtually all the issues that contribute to unhappy franchisees and decreased validation.