The art of scale and duplication
For those with ambitions to run a big business leveraging the franchise model, ultimately, the ability to scale successfully from one to multiple outlets is required. This is achieved by adopting a very different mindset from that of a small ‘owner manager’ franchise compared to someone overseeing multiple units. We find the switch needs to happen for franchisees running more than five retail stores. At this point, systems, duplicated leadership and people are needed who have the capability to run the business without the need for the franchise owner to be involved in the extensive day-to-day work.
Replication of processes and delegation of authority are key skills which need to be acquired by the franchise owner to run these larger franchise operations. This means empowering and trusting staff to hold the business together. From a leadership perspective, the ability to invest in the right people with right capability at the right time is therefore important.
Some struggle with this mindset. It is necessary to allow others to grow and sometimes to fail, and this can be challenging. It was Robert T. Kiyosaki, Entrepreneur, Author, Investor who said: “Sometimes the hardest thing to do is to trust your team. It’s a lesson I’ve had to relearn quite a few times.”
However, the successful leader of a large operation will always believe the business will become better and grow with its people and the biggest mistake a big business leader can make, is not investing in capability.
A successful 20+ store franchise is one that an owner can potentially leave for six months and when they return it is still running successfully. Franchisees with operations of this size trying to do everything themselves, will fail. These franchisees still have a small business mindset. The litmus test is that if the owner is the business, then it’s still a small business.
However, change occurs over time. On day one, the owner manager needs to create the vision but understand that scaling and duplication is a collective effort and a long-term journey. In simple terms: everything starts from one, but anything of size requires many.
On this journey, less successful franchisees fail to empower others to take key decision for daily execution for parts of the business. Generally, they don’t foster a culture of learning in the organisation, tending to live in the here and now. Because they are ‘firefighting’ daily, they don’t have the capacity to plan for the future and therefore the clarity and foresight needed to be successful over the long term.
Conversely, at Papa John’s we find that our most successful franchisees with 20+ stores are particularly effective at teaching others, and we support them in that effort. With our help, they focus on putting strong systems and processes in place, so their teams are clear about their tasks and responsibilities. Our most effective franchisees also have a clarity of vision and a willingness to invest in the right resources ahead of key growth stages. It’s a tough scenario if a franchise doesn’t have the right people when needed and ultimately that business will crumble if it doesn’t have the right capability.
Interestingly, this was articulated perfectly by the former American president Ronald Reagan: He said: “The greatest leader is not necessarily the one who does the greatest things. He is the one that gets the people to do the greatest things.”
The art of scaling and duplication in franchising can be learned and realised with the help and collaboration of an experienced franchisor. At Papa John’s we are always looking to recruit potential franchisees with the right energy, determination and mindset to become successful multi-unit operators and our dedicated team is able to support them and help put systems in place so they can work towards achieving their big business ambitions.
