I love to cook and have even created my own recipes (part of the nature of being a franchisor, I guess). I’ve also found that cooking great food and running a franchise have a good deal in common.
Both work to a recipe and if you follow that recipe the world is your souffle. Of course, a good recipe also needs the right ingredients.
In cooking, the recipe represents the ‘route map’ but the ingredients are what turns an idea into a great dish. The same is true in franchising – yes you need the route map but most importantly you need the ‘ingredients’ to follow the route.
I believe there are FIVE critical ingredients to cooking up a good franchise business. They are: business system, recruitment, support, communication and vision.
Put these in the mixing bowl, add a sprinkling of passion and you have a remarkable recipe for success for both the franchisor and for franchisees.
Business System
The essence of the franchise concept is that it gives anyone and everyone an opportunity to own a business and, by following a proven and tested business system, be successful in that business. That’s assuming you’re in business for yourself, NOT by yourself.
The franchise provides access to the all-important brand, but more than that, the franchisor is there to provide experience and know-how within a proven business system that has been created, tested and made robust.
Furthermore, the system is (or should be) continually monitored, be responsive to market changes and continually improved.
The business system is the cornerstone of the franchise model, together with ongoing support (by way of marketing tools, website, social media, procurement management, sales training, technical guidance) together with a corporate identity, licence and trademarks.
It is my view that a franchisor does not sell the business system to the franchisee but rather leases said system as this encourages the franchisor to continually upgrade and enhance the system with input from franchisees.
Recruitment
The business system is a business imperative; however, a franchise is only as good as its franchisees. To this end, franchisees are only as good as the recruitment process.
In my view it is never the fault of the franchisee if they are allowed into the system and then struggle. If a franchisee turns out to be ‘not right’, then something has been overlooked in the recruitment phase.
Do franchisors ‘get it wrong’ on occasion? Yes, we do. We are all human and sometimes, despite the best intentions, you miss a signal you should have picked up much earlier.
What’s important, however, is to have a system, a process and a structure for recruiting franchisees.
Principles are everything and no matter how tempting it is to recruit a ‘cash buyer’ giving off the wrong signals – don’t do it.
Stick to your principles because rest assured if you take shortcuts early you will pay dearly later on when the franchisee begins to struggle.
All franchisors should have what I call an ‘attribute template’ detailing the characteristics they look for in would-be franchisees. As part of the franchisee recruitment process, some franchisors also find it useful to include psychometric testing in order to understand the personality of prospective franchisees.
Naturally, different franchisors will have different templates, but at The Bardon Group, where we have built a portfolio of franchise brands, we look for people who are disciplined, organised, hardworking, and energetic, with good people and communication skills and an in-built passion for owning their own business.
I also need to determine if prospective franchisees will listen – which is vital because franchisees need to be able to follow the system, take advice and learn from the experiences of others as well as their own.
Support
A good recruitment process should get you good franchisees.
It is through ongoing support that you will help them grow their business.
Franchisors’ support structures vary depending on the size of the organisation but should include marketing systems and tools, website, social media, procurement management, sales training, operational support, technical guidance and of course a corporate brand, licence to trade and trademarks.
Franchisees may or may not choose to take full advantage of the systems, tools and collateral on offer. However, it is the duty of the franchisor to provide the support that they believe will add value to the business and will help the franchisee to grow.
Communication
I remain adamant that on-going communication with franchisees is the most critical factor for success. A good, strong relationship (aka marriage) between franchisor and franchisee is fundamental to the creation, development and ongoing success of the franchise and clear, regular and informative communication should be the cornerstone of this relationship.
I am also a great believer in one-to-one visits with franchisees and over the years have dedicated at least two days per week to ‘getting out and about’ to help to build and strengthen the bond between the franchisee and the Head Office team.
That said, visits are not enough in themselves – regular communication is essential and visits need to be supplemented with regular newsletters, phone support, business planning meetings, regional get-togethers, annual conferences and a comprehensive intranet that houses the full business system and all levels of support and the range of tools available.
These all have their place in the pantheon of good communication.
Vision
A good franchisor must be a leader, an innovator, a council and a spouse.
They need to have a vision of where the business is going and how it will get there and should be on the lookout for new business opportunities and additional revenue streams for the franchisees. I remain steadfast in my belief that successful businesses develop multiple income streams.
Finally, franchisors need to act as mentors, providing guidance, experience, knowledge, intellect and support.
So then, five key ingredients for a successful franchise recipe.
But there is one other thing – a WARNING:
Running your own business can be lonely; owners can feel isolated, and a key function of the franchisor is to ‘be there for the franchisee’.
A franchisor should lay out a recommended route plan that the franchisee can follow but should also allow the franchisee the freedom to run their businesses for themselves.
It is not my job to TELL the franchisee what to do.
It is my job to provide a structure and a range of tools to help the franchisee navigate the route successfully and to be there with support, guidance and advice along the journey.
