PrintWhile investing in a franchise is the first step in easing into business ownership, there are many other steps you can take once you’re a franchisee to grow your new business successfully. We talked to franchisees, franchisors, and franchise experts to get their best tips on how to be a better franchisee.
1. Hire the Right People From the Start: As a franchisee, it’s your responsibility to form the right team of people. Not only will this improve the workings of your franchise, but it could also save you an incredible amount of money. Harold Jackson owns seven Subway locations, has over 100 employees, and estimates that each time an employee leaves, the typical cost to him is between $700 and $1,000. To reduce turnover, he uses a behavioral assessment program, the Predictive Index, to place employees in the roles and positions best suited for them. “Easy to use, industry-agnostic, and cost-effective, a behavioral assessment program like the Predictive Index, which I use, can provide new insights and tangible data that will lend new perspectives on employees and ultimately create a workplace environment that far fewer employees want to leave,” says Jackson. His stores averaged 70 percent turnover before he started using the program; turnover has since dropped to an average of 42 percent.
2. Be Hands-On:
If you want your franchise to succeed, you need to be present. “I tend to lead with a hands-on approach,” says Frank Stockton, who opened his first Massage Envy franchise in Fort Worth, Texas, in 2006 and has since opened two more. “It’s important to me that I’m visible and accessible to my staff.”3. Get to Know Your Customers:
Your customers are ultimately your bread and butter, so get to know them in order to offer the highest level of customer service. "When we opened our Fort Worth location, the business was still growing, so we weren’t as busy as we are today,” says Stockton. “Since we had more downtime during each shift, we’d invite members to sit down with us in the lobby after their massage to have a bite to eat and discuss their massage experience. It helped us build great relationships with our customers and fine-tune how we ran our business. To this day, I still hold focus groups with our members, which has been priceless.”4. Create Raving Fans: If you offer excellent customer service, your best form of marketing will be your customers. “Use them in video testimonials and ask them to tweet and post about your business,” suggests Shannon Wilburn, cofounder of Just Between Friends, a children's and maternity consignment event franchise. “Give them incentives for telling others.”
5. Think About the Big Picture by Mentoring Newbies: As a franchisee, you’re not just the owner of your franchise, but a member of a bigger team — the franchise system. “Be willing to help when someone needs it,” says Daven Tackett, cofounder of Just Between Friends. “So often we think that our skill set is inconsequential to others; however, everyone has different skills, and using your business skills to help a fellow franchisee furthers the franchise system and helps the brand as a whole.”
6. Be Proactive in Asking for Help: When Judi Purdy first opened her Maid Brigade franchise in Loudoun County, Virginia, in 1987, she faced a big learning curve. In order to learn everything she needed to succeed, she talked to a mentor on a weekly basis. “Learn from the experience of others who have been successful in the franchise; ask questions, and listen to the answers you get,” she says.
7. Get Involved in the Franchise: Purdy also made it a point to attend every franchise function Maid Brigade offered: on-site visits, regional meetings, and annual conventions with fellow franchisees. “Even today, our most successful startups are the ones who are engaged with and participate in all company-sponsored events,” says Purdy, who is now Maid Brigade’s Executive Director of Training.
8. Surround Yourself With a Team of Professionals: “Early on, establish relationships with local professionals such as an employment law attorney before you have the need for their services,” says Purdy. “Other important professionals on your team of strategic partners should include a banker, accountant, financial advisor, insurance agent, and possibly a workers' comp attorney.”
These are many ways to improve your chances of success. Following these franchisees’ words of wisdom will get you pointed in the right direction to becoming a better franchisee.
Sara Wilson is a freelance writer who specializes in issues related to small businesses. Contact her at wilson.sara@gmail.com
