This article will provide concise, straightforward advice from expert franchisors, detailing the most important factors that franchisees need to consider.
While there is a plethora of advice out there for aspiring and experienced franchisees, this abundance of information can be difficult and time consuming to sift through. As a business owner, you’ve likely got a lot on your plate already.
So, let’s get straight to the point.
A franchisee’s qualities and responsibilities
While entrepreneurial skills are vital, franchisees need to be able to follow a recipe. Andy Cheetham, Founder and Chief Executive of Lime Licensing Group, echoes this advice, stating that franchisees need to adhere to the operational manual.
“Franchisors have a proven blueprint, and it’s up to the franchisee to bring it to life. No business is easy – you’ll take a few knocks. But take them on the chin, focus on the model and keep going”.
Paul Mitchell, CEO of Accentiá Franchise Consultants, reiterates this point, “the reason franchises succeed is because someone gives a franchisee the recipe book, they buy the right ingredients, follow the instructions, and the final result is something both parties should be able to enjoy”.
Elaborating on the key responsibilities that franchisees should uphold, Andy boils them down to four factors: honouring legal obligations, compliance with the operational manual, upholding customer service and taking business ownership seriously.
Ultimately, a franchisee needs to be able to possess the drive, skills, resilience, and enthusiasm to run the business within a set model. While these may seem like obvious attributes, it can be challenging to apply and maintain them.
Overcoming challenges and managing relationships
Running and managing a franchise presents a unique set of challenges. If you are struggling to manage your franchise, Paul offers avenues a franchisee can consider.
“Firstly, speak to the franchisor. They are there to support you. Secondly, you need to revisit why you bought the franchise in the first place. Are you still passionate about it? Have you put in the dedication? Thirdly, consider investing in training, getting a business coach, or reaching out to friends and family for support.”
Maintaining an effective and healthy relationship with a franchisor can be difficult, and it is one of the biggest challenges in franchising. While the beginning stages may run smoothly, the future can look very different. It is not uncommon for relationships to become stale and resentful, but it is both the franchisor and franchisee’s responsibility to ensure it does not happen.
“The franchisor needs to continue reinvesting in the relationship, the system and the process. The franchisee needs to continue respecting the fact that the relationship is a long-term journey”, says Paul.
Being conscious of self-serving bias
Self-serving bias is a common part of human nature, and franchisees need to be conscious of it. Blaming failures on external factors, systems, or people is easier than accepting failure. Taking credit for successes, accomplishments or other positive outcomes is obviously very easy.
Accepting the reality of every situation is not a simple task. When it comes to franchisees, taking responsibility for every outcome is crucial.
“Franchising is principally about replication. So, the franchisee – in replicating any business – is ultimately responsible for what happens, whether they like it or not,” Andy explains.
Accepting advice is not a sign of failure
Franchisees need to take on multiple responsibilities and remain dedicated. Buying into a business you are passionate about is essential, but maintaining your livelihood is equally important.
While franchising offers a proven business model, franchisor support and other benefits, franchisees still need to maintain a strong work ethic to ensure the business generates profits and a return on investments.
Most importantly, being open to advice is imperative to a franchisee’s success. Paul reiterates this, “accept that the franchisor created the business that you bought into. Taking advice is not the same as acknowledging failure. It’s failing to take advice that leads to failure”.
