I’ve always thought that one of the most important things to remember about franchising is that the franchisor and the franchisee are different ‘animals’.
Certainly, they should share the same goal – primarily creating a successful business for the franchisee – they will approach things from different angles and they will bring different attributes to the relationship.
With this in mind I thought it would be useful to understand the ‘rules of engagement’ in franchising and to appreciate the clear and different responsibilities faced by both the franchisee and the franchisor.
The essence of good franchising is that the franchisee is in business for themselves, but not by themselves.
First and foremost, this is YOUR business
It is the responsibility of the franchisor to create a proven business system, to train franchisees in that system, to provide ongoing support in that system and to continually develop said system – including the processes, methodology and tools.
That said, it is certainly not the franchisor’s responsibility to run your business.
It is also the responsibility of the franchisor to support the franchisee in key business disciplines – including training, sales, marketing, procurement, plus much, much more, and you would also expect the franchisor to be a guide and a mentor.
The Franchisee, however, remains the business owner. Therefore, when you buy into a franchise, it is not an excuse to abrogate from the responsibility of running the business.
If the business fails you cannot simply blame the franchisor, nor can you put the onus to build a successful enterprise on to someone else.
Ultimately, this is your business, and you must assume responsibility.
Creating success
So, how does the franchisee develop and grow as a new business owner?
Remember that you have bought into a franchise – so you have bought into a system, you have paid for intellect, knowledge and experience, you have invested in a brand, a licence and a territory and you have access to support and business tools – use what you’ve paid for!
Meanwhile, 30 years in B2B franchising has taught me the following ‘must do’s’ to grow the business:
Pound the pavement
I am a great believer in ‘walking the patch’ and ‘smelling’ out prospective customers. The closer I get to a customer, the more I start to understand them and, therefore, the better chance I have of doing business with them.
So, as a start point get out in your territory and learn about your prospective customers.
Network
You need to inculcate yourself in the local business community.
Get out in your patch and carry out as much local networking as possible by getting involved in the whole plethora of networking opportunities such as the BNI (Business Network International), BRE (Building Research Establishment) and 4-Networking, as well as the long-established Chamber of Commerce, Women in Business and other local enterprise clubs.
Remember, the more people you see the more opportunities you get to sit 1-2-1 and the more appointments you have the more business you will do.
Networking is one way of introducing yourself to potential customers and acts as a door opener to a future 1-2-1 meeting.
Moreover, networking will help to raise awareness of both you and your business.
Target at least three referrals from each event, to help build a strong customer base.
Ask a friend
I have found over the years that Americans and Australians are simply much better at asking for referrals than the British.
We Brits are stoic when it comes to asking for anything – but particularly for assistance.
We tend to just keep plugging away hoping to eventually find ‘the solution’, whereas what we should be doing is asking for referrals.
Not easy for some but gaining referrals will boost your profile in the world of business so ask friends and family, plus existing customers and suppliers, to provide contact details of one or two other people. Not just any old details, but for those who our friends believe would benefit from knowing about our existence – and what our business has to offer them.
Remember though, make the process easy, particularly if you are asking an existing customer.
“Do you think you could introduce me to George in HR on the way out” is a lot easier for your contact than “do you know anyone who has similar requirements to you in the organisation”
Build relationships
Business is about getting personal with your customers and building relationships – intimacy lowers barriers and builds trust.
The franchisor is not equipped to get close to your customers – you can, and you must!
To make an impact with customers, you have to get noticed. This may mean marketing them directly and building intimacy by sending something which will appeal to them personally.
It will invariably mean getting together with them in a meeting, learning about their role, understanding what makes them tick – essentially it is business courtship.
Use intimacy tools
Personalised products are potentially a key weapon in retaining or attracting customers. We might send, or hand deliver, a gift that is personal to our customer. This provides us with an opportunity to make that customer feel special. The product could be a mug with the customer’s name on it, or even a long-lasting durable pen, or a pair of cufflinks inscribed with a personal emblem.
Whatever the chosen product, the most important aspect is the intimacy you gain with the customer.
This is a first step in enabling you to build a personal relationship.
All of the above need to be carried out by the franchisee – and not the franchisor.
Franchisors have their own responsibilities to ensure the network is continuously developing.
Franchisee support is a critical responsibility of the franchisor and working together creates a successful business – as such each party needs to know and understand their own personal responsibilities for achieving mutual success.
