Collaborating to build more satisfying and profitable businesses
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After 30 Years In Franchising... I've learned from thousands of franchisors, franchisees, and other experts from many parts of the world. At Franchise Mastermind I'm sharing this wealth of knowledge with you! Join me on this journey and use this opportunity to build a more satisfying and profitable franchise business. --John P. Hayes, Ph.D.
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This article is right on the money. After being involved in franchising for 25 years, I can say that the way for a franchisor to succeed and profit is not by selling franchises, but by growing them. If a franchisor is first and foremost dedicated to the success of its franchisees, its own success is multiplied many times. I have seen first hand how a franchise can be botched up by following the advice of so-called experts and numbers crunchers.
Your reference to dictatorial franchisors also brings to mind the demise of a successful franchise brand for that very reason. When the BoJangles chain was acquired from the founder by a new owner back in the mid 1980s, the relationship that previously existed between the franchisor and its franchisees quickly evaporated and the entire franchise system soon followed the same path.
A franchisor that depends on managing its franchise network primarily by enforcement of a tough franchise agreement (particularly if it is strongly slanted to one side in the franchisor’s favor) will find itself in constant crisis. I believe that a spirit of mutual respect and cooperation can best be attained if a franchisor treats its franchisees like consumers who must constantly be wooed as good retailers do to keep their customers loyal. Walmart delivers what consumers want and the corporate philosophy seems to have worked pretty well for them. The same philosophy can serve franchisors equally well.