The decision to franchise can be a great option for growing businesses but it often involves a culture change which can take some getting used to
Any small business looking to franchise, as a means to mix it up with their larger competitors, will of course think thoroughly about the business viability of doing so before making their move.
Indeed there’s so much to consider that one crucial element of the transition to a franchise business is easy to overlook. That’s the culture change within your existing business and in the future franchises themselves – a culture which will ultimately be dictated by you, as the franchisor.
Your franchisees will welcome the invaluable pool of support you and other franchisees, alongside the training packages, existing supplier relationships and the ease of accessing finance.
But they must also have realistic expectations about the restrictions on freedoms which come with being part of a franchise, as opposed to being completely self-sufficient.
Why should this be the case? Because without a defined culture which runs throughout the franchise operation, standards may slip and brand damage can occur, to the detriment of all.
Likewise your existing staff must recognise the change between being responsible only for the reputation of one small business, compared to the new burden of responsibility of managing brand continuity through an entire network of new customers – franchisees and their staff.
The importance of good recruitment
Employing the right people is vital to the success of any business and franchises are no different in this respect.
Franchisors should consider whether their existing staff have the skills and experience necessary to transfer their roles to a network of franchisees. If not, think about growing your team to include the necessary aptitudes.
Franchisees, meanwhile, should of course take on staff suitable for the industry in which they are working, with the right personality, passion and skills to succeed in their role. However they also need to be aware that certain characteristics are needed by employees in a franchise.
These include sticking to certain guidelines set by the franchisor and an understanding that the franchisee will have a management style which matches these requirements.
Proper training for your franchise staff
Recruitment is important, of course, but franchisees can’t necessarily expect new employees to be perfect from the off. So good training is essential to ensure staff stick to a prescribed framework and maximise their productivity.
Franchisors and their teams should also make it clear that all franchise employees are working within a defined, network-wide structure and, as such, expectations regarding creativity and contribution of ideas should be carefully managed.
Of course, this needs to be balanced with making employees feel valued! No one wants to feel like they’re performing their role as a mindless automaton. So it’s vital for franchisees to communicate the contribution the employee is making to the business and the wider purpose of their role to ensure they stay motivated, particularly through the early stages of the employment.
That culture starts with the franchisor. The very best will understand balance, recognise that over-prescriptiveness can be excessively stifling, and know that an element of individual values and cultural will add a valuable degree of personality to training.
In turn, franchisees will often themselves often be managers, especially during the early stages of a business, and this will involve the communication of potential for career advancement, personal growth and further training.
Cultural techniques for high retention
Alongside productivity, the other significant benefit of a culture in which employees feel valued is retention.
Franchise-wide health and safety policies, for physical health and mental health, will be set by a franchisor, but executed by franchisees. Those leaders have responsibility for ensuring staff are content and working well.
All employers should be aware of rising numbers of employee tribunal claims. But for franchisees, the flip side is that good treatment of employees will set you apart from competitors and help make your business a success.
So, salaries should be carefully managed to keep staff engaged. And they should be aware that, while barriers to personal growth may be limited due to the nature of the franchising arrangement, they are a valued part of your business journey and their loyalty will be rewarded.
