With the input of the franchise system and careful attention to the brand’s value proposition, a franchisor’s relationship with its franchisees can thrive.

By Kevin Lathrop

A franchisor can spend a wealth of time and resources to make sure that a company is evolving and moving forward in an ever-changing marketplace. But, what good are the tools and support systems a franchisor works to provide if no one in the franchise system sees the inherent value in them and as a result, doesn’t use them? 

I’ve had the unique pleasure of watching a franchise system evolve over 25 years from both the franchisee and corporate executive stand point. Having watched various new tools and support systems being implemented over the years, I’ve found that a grassroots approach is most effective to gaining both acceptance and adoption of new tools and programs.

Consider the source

If you really want to know what resources and tools will have the greatest benefit to the system, you often have to go straight to the source: the franchisees. It is easy for the franchisor to become detached from the day-to-day activities and pain points of its franchisees. This separation is detrimental to optimizing the resources that a franchisor provides. Knowing where to focus the development of your support systems requires constant feedback and is a key step in effectively evolving a franchise’s support system. 

Within your pool of franchisees exists an amalgam of experiences and levels of understanding of the processes. When sorting through a large amount of information, the franchisor must be able to place different priorities on different kinds of feedback. That means taking into consideration the unique concerns of a new franchise owner or multi-unit operator; their use of tools are inherently different.

Determine how you will listen

You’ve acknowledged that you need to listen to the franchise system in order to determine what tools it really needs. Now what? How do you go about making sure that all the feedback you’re receiving is actually put to good use? This can be done with the help of a franchisor “gatekeeper.” 

At Unishippers, our gatekeeper is our Franchisor Relations and Support group. It serves as the first line of support for our franchisees and is our ear to the ground. In this role, it is uniquely suited to be able to escalate concerns or suggestions from franchisees upward and outward to the appropriate departments. Having a team like this in place is critical to ensure the system remains focused, keeping in mind long-term and short-term goals for the franchisor and franchisees. Furthermore, when rolling out a new support tool or resource, these gatekeepers are in the best position to manage expectations and provide more one-on-one guidance to franchisees who need the extra support. 

Another way to gather information on what new tools or resources could benefit the system at large is through direct observation via corporate stores or through entities that are run by the franchisor directly. Having company-owned stores provides a great resource for direct feedback on both internal and customer facing tools in real time. They also provide a testing ground that allows franchisors to genuinely test programs and initiatives in the real world before they are implemented system-wide.

Assess the risks and rewards

While there are many benefits to being the first in an industry to develop a new resource, being an innovator can also have negative consequences. On one end, showing that the franchisor is responsive and a leader within the industry will help attract new franchisees and signal to existing franchisees that the corporate office is listening to them and working quickly to adapt.

However, franchisees and customers alike may be less likely to adopt new tools if they don’t feel they have been fully vetted in the real world. In the drive to be the first to introduce a new tool, there will be failures, which can put the franchisor and franchisees’ relationship at risk. A franchisor must assess whether being an early adopter is in line with the overall brand or puts its values at risk.

Get your franchisees vested

Throughout the years, our company has undergone some large scale projects that have then helped facilitate growth for the entire system. And throughout these changes, one thing has remained constant: more collaboration at the beginning of a project from franchisees usually correlates with better (and quicker) overall adoption and ultimate success. We help ensure this collaboration by forming special committees that include members from the corporate office and the franchise system. The franchisees that choose to participate feel vested in the new initiatives and also serve as great ambassadors to help get the rest of the system on board.

Don’t be quick to check the “completed” box

Once a new resource has been introduced, it’s not a done deal. The franchisor still needs to listen and gather quantifiable results. This is necessary for myriad reasons. First, it helps determine if the new resource was a success or if further refining is required. Second, it allows the franchisor to be able to demonstrate to newcomers the value in using the tools and resources it provides for the system. And lastly, it gives new franchise owners a chance to take a look at the process through a fresh set of eyes and perhaps unearth an even better way to evolve in the future. 

Over time, a franchisor’s tools will become more sophisticated and robust, but the goal is to be able to simplify and evolve simultaneously. With the input of your system and careful attention to your brand’s value proposition, a franchisor’s relationship with its franchisees can thrive.  

Kevin Lathrop is president of Unishippers Global Logistics, LLC. Find him at fransocial.franchise.org.

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