Maintaining Unity in a Franchise System

Managing the Mindset of a Franchise Organization

Matt "Red" Boswell

Founder and Chief Executive Officer Pet Butler

Managing an organization's psyche is one of a franchise company's top jobs. Just like giving birth to a new baby adds tremendous responsibility to its parents, so does adding a new franchisee to one's company.

A franchise organization must continually monitor each franchisee's mental attitude and excitement level. A drop in a new franchisee's

When not achieving one's expected or desired results, it is human nature to place the blame on anyone but oneself. To keep this blame-casting to a minimum, a franchisor must:

* Lead by example. Hypocrisy and insincerity can be smelled a mile away. No one can argue with results.

* Train well, often and appropriately. If it doesn't add value, don't do it. Not honoring others' time creates resentment, bitterness and disrespect.

* Constantly hold each franchisee accountable to working his plan and meeting his time, effort and monetary commitments. Upholding the franchisor's standards and values should also be included in this accountability program.

* Clearly communicate expectations, opportunities, and the status of the organization's progress, and do it often.

In our company's case, Pet Butler accomplishes this through:

* Weekly "Talkin' Poop" national conference calls,

* Bi-weekly franchisee team calls,

* Doo Doo Board message board,

* "Zee Pantry" IntraNet and ExtraNet,

* Annual "Caca Convention,"

* E-mail updates,

* One-on-one periodic accountability discussions,

* Monthly Zee Advisory Council summits, and

* Periodic guest speakers, expert trainers and top-dog franchisee "what works" sessions.

As a thriving franchise business leader, one should seriously analyze the efforts in this area of organizational management. Is the franchise system proactively working to positively nurture its team's attitude? There are few things that can cause more problems for a franchise organization than negativity, distrust and loss of belief. One of the most important things a system can do for the organization is to faithfully focus on positively affecting the mental and emotional landscape of the company.

Allowing negativity, lack of enthusiasm and pessimism to spread can bring about the end of an otherwise flourishing business. Whether it comes from within or from outside, negativity cannot be left to itself nor ignored. Attack it head-on with positive, results-oriented actions.

Commit to fervently guarding this critically-important organizational trait so as to never give franchisees, especially new ones, the slightest reason to slow down their efforts or lose focus on their goals.

Speaking of goals, does the franchise company know what each of its franchisees is really working toward? Why did they join the team in the first place? Sure, they can make money, but money in itself is never the ultimate reason for doing anything. Keeping the dream alive is a significant ingredient to managing the mindset of an individual franchisee, as well as an entire organization, and this responsibility falls solely on the franchisor's shoulders.

Only the organization can make the difference within the franchise family, and often this means the difference between success and failure for hundreds or even thousands of businesses. Individuals and families have put their faith and trust in the company. Don't let them down.

Philosophy and People in a Franchise System Foster Growth

Jeffrey Burnett

President and Chief

Executive Officer

Labor Finders

International

Why are some franchise systems better than others? Is it the concept, service or product? Is it the location? Is it the technology that powers the system? Or is it skill, luck or some of both?

Although there are no right or wrong answers to the questions posed above, I am sure of one thing: "People" are the most important ingredient in the franchise equation. People create a philosophy about the brand, the product and the service.

We must live, breathe and sleep this philosophy for it to be sustainable long term. It must be immediately evident to the customer that there is something special about doing business with our company. I refer to this as the intangible factor. People bring to the franchise business these intangibles that cannot be offered by competitors. We all tout the best and greatest products and services, but how many franchise systems consistently demonstrate the people difference? Customers will buy again and again because of their positive experience with the people that sell and service them.

How do companies achieve this success? It begins with management's commitment at the top and it requires ongoing practice. It is a way of life for the business. It is the essence or core of the business' success in the face of very strong competition. Every franchise system has its challenges: surviving and managing through the economic downturns; being confronted with anti-business regulations; and the occasional strained franchisor-franchisee relationships. It is, however, the philosophy and people that comprise the framework that keep organizations together through both thick and thin.

As a franchise system, we must never forget that customers and the brand are our most important assets. We will always have challenges and growing pains, and we must find ways to manage them. However, the intangibles people bring combined with a well-defined philosophy make just as much a powerful recipe for growth as any competitor. I encourage you to take some time to talk with your management team and ask if these elements exist. If so, congratulations! If not, start thinking today about creating an environment in which those customers always want to be a part. To help get you started, think of a business where you are satisfied almost every time you buy. Then, figure out why the experience is always a good one. I would imagine that at these businesses, employees are always pleasant, they go out of their way to service you and the brand is extremely strong.

The philosophy and people make the organization stand out. Start working on the intangibles today and you are on your way to creating a memorable customer experience.

Overcoming Disruptions by Building Strong Franchise Relations

Lonnie Helgerson,

CFE

President and Chief

Operating Officer

Ident-A-Kid

Sooner or later in a franchise executive's career, he or she will encounter difficult times in a franchise system. Disruptions to a system can come from a variety of sources, both internally and externally. Purchasing, territorial issues, management changes, economic or regulatory issues and competition are some examples that can create severe tension between a franchise system and franchisees.

It is not the disruption from these issues that can cause the greatest harm within a franchise system, but how management and staff react to them that poses the greatest threat to the company. With the Internet, these disrupters travel at light speed so a franchise company has to be exceptionally skilled at filtering out real problems from the white noise or static that is predominant in e-mail, forums, blogs and other tools used to communicate today.

Regardless of the disruption, the gravest mistake that a franchise company can make is not having strong positive relations with the franchisees long before something happens. Much like a marriage, a unified system will weather the storms, whereby a weak one will fall apart.

Maintaining unity in a franchise system starts long before the disrupter arrives, and it begins by creating franchisee trust and ownership of the system. There are four key ingredients to accomplishing this: a strong, consistent vision for the system; transparency; franchisee involvement; and honest, straightforward communication. When practiced with the fortitude of an athlete, these ingredients will carry a system through troubled times.

In every sense possible, franchisees must be participants in the setting of strategy and vision for a franchise system. Franchisees should be invited to participate in annual strategy meetings and in assisting the franchise system in developing the vision and plan for the system. It is also vital that the vision and plan be communicated by both the franchise company and the Franchisee Advisory Council alike. This vision must be populated through the entire staff and system consistently and frequently until it becomes a "we" culture.

Transparency is the most difficult ingredient for most franchise organizations to attain. Transparency, in this context, is met when there are no operational secrets, agendas or new programs that have not been communicated to the FAC and franchisees. When franchisees are included in ongoing operational design, planning and decisions, the questions from them about what headquarters is doing will stop. If franchisees are asking questions about headquarters' doings, they are not involved enough.

When franchisees are deeply immersed with the first two ingredients of creating a strong, consistent vision for the system and the company has achieved transparency, then the third and fourth ingredients of franchisee involvement and honest straightforward communication are "auto-magically" accomplished. In essence, practice two and get two free. This approach to franchisee relations will yield unbelievable results when disruptors hit a system.

The greatest leading indicator of brewing problems is the franchisees themselves and having a rock-solid relationship with them will help identify and dissipate disruptors long before they actually become a problem.

Effective Communication Creates Stronger, More United Franchising Systems

James Mowery, CFE

COO/CIO

Instant Tax Service

The success of any franchising system hinges on the ability of franchise systems to bring together a diverse group of partners in a united vision and purpose. As a franchise organization, it can achieve this unity by making the most of the communication tools at its disposal, staying flexible in the face of chaos, and hosting annual meet-and-greet events between franchisees and support staff. The relationship between the franchise company and franchisees has been likened to a marriage, and like any good marriage, communication, flexibility, and the reaffirmation of goals and values is key to unifying your franchise system.

The bigger the franchise system grows, the more important communication becomes to the success for the business. Take advantage of all the communication tools available, including intranet portals, conference calls, e-mail and instant-messaging tools. Weekly conference calls allow people to discuss potential roadblocks as they develop and share success stories with franchisees. Recording a conference call and posting it on the intranet portal allows franchisees who are unable to attend the call to stay informed.

Speaking of intranet portals, make the most of it. Portals are a centrally-located, easily-accessible place to host franchising manuals, marketing materials and press releases. The franchise system can moderate discussion forums, maintain a secure internal-messaging system, host customer relationship management tools, record franchise sales processes and host dashboard reporting modules. In short, portals are a great place for bringing everybody together.

Another key element in the unification of a franchising system is flexibility. Companies need to be flexible enough to know when and how to utilize the collective knowledge of franchisees. By creating a culture of open communication between the leadership staff and franchising community, the company will put itself in a position to educate, communicate and innovate together with its franchising partners.

Technology tools and flexibility, however, can only take a franchise organization so far. The single greatest tool a franchisor has for achieving unity is taking the time to meet face-to-face with franchisees. If properly planned and executed, an annual owners' convention is a great time to restate, revise and reaffirm values, vision, and goals in person with franchising partners. Take this opportunity to showcase new products and host seminars informing franchisees about the latest innovations. Hold a town hall session where franchisees can ask corporate executives or the leadership staff questions about new processes or procedures. When responding to these questions, be transparent. Admit that there are issues, and let franchisees know how those issues are being addressed. Partners want to know that their voices are being heard. Listen.

The more opportunities one takes to reaffirm the vision and goals with franchisees, the more one involves them in the innovation process, the more effective the communication, the stronger and more united the franchising system will be. If the franchisor-franchisee relationship is like a marriage, make sure it's fulfilling your half of the commitment.