We’re led to believe that franchising is best suited to those who ‘play by the rules’, don’t aim to ‘reinvent the wheel’ and have just enough entrepreneurial spirit… but not too much. How, then, is one supposed to stay at the forefront of their industry? Who does lead change and where does the responsibility lie for development and innovation?
Frank Milner, president of global education franchise, Tutor Doctor, looks at franchisor and franchisee obligations as well as showcasing what can happen when both parties are truly aligned in their mission for excellence.
For any franchisor, there’s a fine line between maintaining the integrity of its brand and unwittingly stagnating. A key part of our role as a franchisor is safeguarding our franchisees’ reputation by policing – and enforcing – consistency across the network. No franchisee would appreciate their efforts being tarnished by one rogue operator trying to ‘shake things up’ with a new system, process, product or service that was outside of the model. But tunnel vision or utter fixation on this element of management is actually detrimental. True leadership, and something to look for in a franchisor, balances quality control and the strategic development of the brand in such a way that franchisees are assured longevity and opportunity in their marketplace.
It’s the responsibility of a franchisor to continually seek to improve the experiences of stakeholders, be they franchisees, customers or staff. That’s not to suggest that franchisees should hope for (or expect) frequent, disruptive changes – this would be just as bad for business as none at all! To find evidence of such activity, seek out confirmation from existing franchisees that they’ve experienced improvements. Again, this doesn’t have to be incredibly dramatic and is far more likely to be upgrades to internal systems and processes. Validation comes from hearing that these changes have positively impacted franchisees’ businesses – saving them time, reducing cost or resource requirements or simply making a once cumbersome task less of a headache. Internal developments offer franchisees bandwidth to generate more sales. When viewed in those terms, the importance becomes clear.
External developments, i.e. those that usually impact end users, are often in response to emerging industry trends and identified service niches. Those brands with the courage and infrastructure to pursue these kinds of innovations are known as market disruptors and can leave the competition scrabbling to catch up!
What I love about developments to a franchise brand’s offering is that they can only be successful through collaboration; franchisor and franchisees coming together in a truly spectacular fashion for the benefit of all. While funded and orchestrated by the franchisor, these enhancements are very often the brainchild of one or more franchisees who, having been the ‘boots on the ground’, identify a need or a gap in the market that is ripe for development. Working together, new products or services are analysed for feasibility, costed and eventually piloted by members of the network.
A fantastic example from within Tutor Doctor is our Schools Delivery Programme. This is unlike anything else being undertaken today, and we invested heavily, collaborated extensively with our network and created an entirely new operational arm of the business to ensure success. After two years in the making and launching late 2023, this new arm of the business has resulted in exponential growth within the franchise network.
Since the launch of the programme, franchisees have partnered with over 570 schools across the country and supported an additional 5,900 students. Network turnover has increased a staggering 114% year on year, and the three franchisees who piloted the scheme have all exceeded £1 million turnover. A testament to the sheer demand and success of the service, 66% of all work delivered by franchisees is now through schools and local authorities. Had either party not fulfilled their unofficial obligations, this would not have been possible.
Those responsibilities, while not equal, are most definitely shared. No, it’s not your remit as a franchisee to conjure up new offerings, but if you do identify an opportunity, you should feel compelled to share it! And franchisees do have a responsibility to drive the brand forwards as part of the collective. For their part, franchisors should always be striving to leverage technology and/or open up new revenue streams for franchisees. They should also have an open door and be willing to engage with franchisees who bring realistic ideas to the table.
The notion that this is an industry in which innovation is limited could not be further from the truth. The art of successful franchising has evolution at its core. Yes, franchisees thrive via a proven and refined business model, but in that refinement, they continually play an active and fulfilling role. Entrepreneurs are very welcome here!
