What Makes a Great Franchisor?

By Sarah Stowe

Sarah Stowe heads up the editorial in the Inside Franchise Business group

A great franchisor needs to understand the value of the relationship between Franchisor and Franchisee and that a franchisee network is much more than just a channel for expansion of the brand.

Shares Their Vision

Franchisees should know where the Franchisor is taking them, why and what the plan is to get there.

Communicates the Message

The best idea will just stay that unless the message gets out to the franchise network and they can implement what’s important. Major changes to the franchise system should be timed and communicated well, with time for feedback to be taken on board.

Feedback is Essential

A great Franchisor will never ignore feedback, particularly when their frontline franchisees are providing valuable comment on the effectiveness of a business process or their lack of profitability. Great Franchisors seek feedback on all elements of the business, particularly big changes to the system.

Focus on Profitability

A great Franchisor focuses on its Franchisees profits, not theirs. A franchise system that does not deliver a profitable model isn’t doing its job properly.

Creates a Positive Culture

A great Franchisor will focus on the attitudes and ambiance they want to encourage across the network and will create processes that allow for positive change, and will be persistent at it.

It’s a Team Effort
Franchisees, head office staff, everyone plays their part in making the business a well-oiled organisation. Great Franchisors give credit where it’s due.

Franchisees are Respected for Their Efforts

Franchisees are helping grow the brand and footprint across the country, so they deserve to be respected by the Franchisor for their efforts – even if they sometimes get it wrong.

Valuable Training:

Franchisees benefit from learning about new processes that will improve their productivity or performance, and increasing their knowledge bank. The more help franchisees can get from their franchisor, in most cases, the better the franchisee’s chances of success.

Transparency

Everyone in a franchise will appreciate a leader who keeps them informed about business developments. This goes some way towards creating a positive culture too.

They Get out in the Field:

Visits or regular meetings with Franchisees are invaluable in creating a bond between Franchisor and Franchisee and allow the Franchisor to understand more of the challenges faced on the frontline.