Which Kind Of Franchise Company Are You Cultivating: “All For One” Or “Us Vs. Them”?

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The ancient saying goes something like this, “Do not deprive the body of its members.”

All for one . . . one for all?

Good advice for franchisors and franchisees, particularly in troubled economic times. Many franchisors and franchisees continue to approach today’s challenges as they did in the good ole’ days (meaning just months ago, and not centuries ago). Out of habit, they seem to think that for one to win someone (or many) must lose. That kind of thinking shouldn’t ever exist in franchising, but of course it does by human nature.

Does it make sense to threaten?

As an example, one franchisor recently threatened its franchisees by telling them via the company’s blog that they were commencing with audits and “that should strike fear into any franchisee that is failing to (pay royalties).”

Amazingly, the franchisor continued, “You have been warned.”

Where’s the common sense?

Wow! What was that franchisor thinking? Or perhaps: Not thinking!

Does it ever make sense to “strike fear” in franchisees? Or, for that matter, franchisors?

Aggressiveness like this occurs only because someone has confused the priorities of common sense in franchising and business. More so, these things occur when weak and misguided people are in charge of franchised businesses.

What’s it take to be victorious?

A franchisor fails without franchisees. Franchisees can’t even launch their businesses without a franchisor. The body needs its members. And one does not have to sacrifice the other for all to be victorious.

But of course, there are two necessary “ships” that must come into play for common sense and priorities to prevail.

How good’s the leadership in your company?

First: Leadership.

Whether it’s a franchisor or a franchisee company, the person in charge must create the vision and then follow through with a plan of action that breathes reality into the vision.

Leaders deliver consistently

At their core, however, leaders must be people of integrity. They don’t do what they promise, they do more than they promise. They fulfill the vision in a manner that’s consistent with moral principles. When real leaders speak you know they can be trusted.

But leaders also must have authority. The authority to create the vision and implement the plan of action. The authority to make decisions, good or bad, and the authority to mobilize the team. Authority inspires confidence in leadership — otherwise, people know that those in charge are merely minions.

Are minions running your company?

Minions can’t provide leadership, though they want you to believe they can. They’ll tell you they are in charge. But when minions head up a company, whether it’s a franchisor or a franchisee company, they do what they’re told and often only know what they’re told. They don’t really know the plan for the company (because management or ownership hasn’t told them). Therefore, they can’t lead the company.

How good are your relationships?

Second: Relationship.

Leaders understand that it’s always going to be us vs. them unless the leaders build relationships with “them.”

Franchise leaders build relationships

The best franchisees, regardless of what any other franchisee in the network says or does, makes it a point to build a relationship with the franchisor leadership because, when push comes to shove, relationship counts (providing, of course, there’s integrity among the leaders). Franchisee leaders also build relationships with their employees and customers.

Similarly, franchisor leaders know that it’s critically important to build relationships throughout the franchise network as well as with employees.

As a former CEO, until I built relationships with franchisees and employees I really didn’t understand their motivations. Fortunately, I spent much of my time building relationships, even with the least productive franchisees and the most challenging employees. The relationships were valued partly because franchisees and employees learned by experience that they could count on me to be truthful and transparent, even when the news wasn’t welcomed. Once we built our relationships, our priorities and beliefs often changed. Because of the importance of our relationships, we made progress without feeling the need to threaten each other.

Because they lack authority and often integrity, minions can’t build successful relationships. Therefore, they resort to threats!

You Better Pay Up!

Royalty payments are a particularly challenging issue in difficult times like now. Some franchisors — to wit, the one that sent the threatening blog to its franchisees — take the position that franchisees just want to cheat them. Some franchisees take the position that their franchisor just wants to take their last dime even if it means forcing them into bankruptcy. In both cases, franchisor and franchisees are missing the real issues.

How long can us vs. them last?

In leader-inspired companies, with cultivated relationships, franchisors and franchisees do not threaten each other. Threats merely hasten the deterioration of the franchise company. Imagine a prospect’s reaction after reading that incredulous blog from the franchisor that was obviously desperate for revenue. Who’d want to join that company?

Are you pushing and shoving?

Even in difficult times, when push comes to shove, leaders in franchising can push or shove together. Of course, this can only occur in franchise companies where common sense and priorities prevail. In companies with leaders that cultivate relationships. In companies where the body is not deprived of its members.

The Strategic Planning Mastermind

Thriving, successful franchise companies are not accidents. They are strategically planned! Every franchise company needs to cultivate a workable strategic plan that will satisfy the expectations of both franchisor and franchisees. Of course, coming up with the plan is one thing. Implementing the plan, tracking the plan, evaluating results and knowing when to change the plan, are quite another thing. You can achieve a superior strategic plan and enjoy the benefits of being accountable to the plan when you bring a Strategic Planning Mastermind to your company. For franchisors, franchisees and suppliers. Inquire here: ask for Strategic Planning Mastermind details.

Photo image by: thelearnr