By Steve Greenbaum, CFE, Tootl Transport

As trends and technologies in franchising continue to evolve at rocket speed, certain fundamental principles remain steadfast. For aspiring franchisors seeking long-term success, these timeless principles can serve as guiding beacons through this dynamic, ever-changing landscape.

As a franchisor who built a thriving global franchise system from 1992 to 2017 (PostNet), and now in the throes of growing an emerging franchise brand (Tootl Transport), I am acutely aware of what past principles to apply, as well as what has vastly changed and needs to be done differently.

The most drastic and obvious change has been technology. Today, no matter what type of brand, all franchise companies have to invest significantly in technology for marketing, communications, operations, franchise development, business intelligence and more. Zoom and Google Meet have replaced in-person Discovery Days and field support, and many “home” offices are now decentralized. While these advancements have reduced costs and improved efficiencies, they’ve also challenged franchisors to balance technology with the vital “human” side of the franchise model.

Culture serves as the cornerstone of sustainable success and is what will separate mediocrity from greatness.

Still, the quote, “The more things change, the more they stay the same,” is a great reminder to emerging brands. While it’s critical to adapt in the face of evolving consumer needs and technology, it’s important to hold fast to some fundamental truths that continue to stand the test of time.

Culture is Still the Killer App

Throughout my career building PostNet and now launching Tootl, the one thing that united us and got us through the most challenging of times was our culture. Culture serves as the cornerstone of sustainable success and is what will separate mediocrity from greatness.

What steps are you taking every day to build positive relationships and earn the trust of your franchisees?

Culture begins with creating core values you genuinely believe in and ensuring everyone in the organization shares your values. Your values should be clearly and regularly communicated and used as the organization’s “North Star” to guide daily behavior and decision-making. A wellnurtured culture will transcend your entire organization, from your home office team to your franchisees and their customer-facing employees, which is why all members of the organization should know, share and be recognized for behaviors that exemplify your culture.

Do you have a culture in your organization that everyone in the company can rally around?

Build Relationships and Trust

No matter the decade, building relationships and trust with franchisees will always be a top priority. This occurs by maintaining open, honest and transparent communication, fostering a culture of mutual respect and support, and actively involving franchisees in problem solving, as well as considering new opportunities through the creation of a Franchisee Advisory Council (FAC), sub-committees or working groups.

When making business decisions, consider how it impacts them and seek their counsel and input. Be open and honest when dealing with challenges and own your mistakes when you make them (because you will). Most of all, remember your franchisees put their faith and trust in you and your team. Honoring that trust by doing the right thing — even when difficult — is essential.

What steps are you taking every day to build positive relationships and earn the trust of your franchisees?  

Complexity Doesn’t Scale

As a franchise system grows, so do the number of projects, processes, programs and initiatives (PPPI’s) a franchisor develops. Over time, many franchisors find themselves struggling under the weight of inefficiencies created by chasing so many shiny objects. It’s critical to review your PPPI’s to determine what’s most effective. What achieves the results you intended? What is no longer efficient or relevant? Strive to reduce complexity and simplify everything you do. If it isn’t easily understood and followed by all, revise or remove it.

Would you describe your PPPI’s as easy to follow, easy to understand and reasonably easy to execute? What can you do to remove complexity from your business? 

Responsiveness and Promptness

One of the top qualities I looked for in my home office team (and franchisees) was a sense of urgency. Urgency is critical in all areas of a franchise business — especially when it comes to being of service to your franchisees. When a franchisee reaches out for help or has a question or concern, you must have a system in place to ensure a prompt response from you or your team. This might include establishing a set time frame or service commitment for a response that you will hold yourself and your team accountable to.

An email is not enough. Some people think because they texted or emailed a franchisee, they “talked” to them, but it’s not the same. Instead, pick up the phone! If a franchisee has an issue, or problem, they want to hear your voice. Call them first and then send a text or email as a follow-up.

Are you making responsiveness a priority? Is your franchise system set up so that your franchisees will receive a human response in a set time frame?

Seek Mentors and Advisors

In my “first act” building PostNet, I followed many great role models who successfully built lasting, iconic brands. I wanted to be around them, think like them, learn from them and build a lasting global brand. I joined the IFA as an emerging franchisor and sought these people out. I found they were happy to share. I surrounded myself with them, listening, learning and building professional relationships as well as personal friendships. As I’m building Tootl all these years later, I continue to be able to rely on many of these same mentors and advisors for wise counsel.

If you want to be a great franchisor, you need to be a part of the franchise community around people who have been there and done it themselves. Your franchise family can offer valuable insights that challenge assumptions, help you mitigate risk and improve decision-making processes.

All new franchisors will have their fair share of bumps in the road, experience growing pains and make mistakes. But by creating and nurturing a culture of inclusion, building relationships and trust with franchisees, avoiding complexity, being responsive and surrounding yourself with other successful leaders, you will set yourself up for a less turbulent, more prosperous franchising adventure.

Steve Greenbaum is a partner, board member and advisor of Tootl Transport and has nearly 30 years of experience in franchising as a founder and CEO. He also served as chairman of the IFA in 2008. After founding PostNet in 1992, he led the growth of PostNet’s franchise system to over 660 locations in nine countries. He also served as CEO of Best Life Brands, a franchised multibrand platform company in the healthcare industry before launching Full Contact Franchising, a boutique consulting firm that advises, invests and supports franchise businesses. For more information about IFA franchisor member Tootl Transport, please visit franchise.org/franchise-opportunities/tootl-transport.

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