franchising aspects Oct, 15 2012

Be a winner with contented franchisees

Franchising needs satisfied franchisees for success, as franchisees can make or break a franchise. However, it all depends on franchisor to keep his franchisees satisfied and happy. Read on for more...

By Abha Garyali
Sub Editor
Be a winner with contented franchisees

A franchisor may have a great business idea, apt location and well trained workers but his franchised outlet may not still be successful till his franchisees are not good. Any franchise business can experience faster growth with more footfalls and popularity with satisfied franchisees, who consider the brand as their own. The most common reason for downfall of any outlet can be the unsatisfied outlet owners called franchisees. Being unhappy with the franchise brand or the franchisor, the franchisee may not put in all their efforts for the development of the outlet, which requires 100 percent dedication from the whole team. This in turn may bring about the downfall of the whole franchise network. Therefore to safeguard his empire from being ruined by unsatisfied franchisees, the franchisor should start working for his franchisees from day one. The article brings forth the guidelines for keeping franchisees happy and worthy.

Chetan Mahajan, CEO, UEI Global shares: “We call our franchisees ‘Partners’ because we think of them in that manner, and actually co-invest setting up their business. Working with UEI, our partner can expect the following – right of usage of the brand, program bouquet, sales and marketing know how, student management system, staff recruitment, training assistance and placement assistance.”

Happy franchisees make perfect outlets

New and even established franchisors should always keep franchisees happy and satisfied for making their business a success. Below given are few guidelines for keeping franchisees satisfied.

Mutual respect is the best policy: In some cases it is seen that the franchisors considering them the owners do not offer required respect to their franchisees. However, it is a must to build strong relationships based on mutual respect with franchise partners. Franchisors should no doubt monitor customer service, outlet operations to ensure best profits but they should work with their franchisees, rather across the table by giving them orders.

Identify thriving franchisees: It is a must to treat all franchisees equally but for the betterment of franchise system, the franchisor should identify and profile his successful franchisees to motivate and boost them to do better. Better performers should be made to feel that they have achieved something. Moreover their special treatment would encourage others as well.

Make exit easy: Franchisors sometimes select franchisees that are not suitable for the concept. Therefore, these franchisees continue to struggle in business. Franchisors should work with them to help, providing guidance to best prepare for the transition. However, even after taking steps they do not make progress, it is best to make exit way open to them.

Understanding franchisees: Being a franchisee is not easy as he has to go through various life experiences, both bad and good. The franchisor should try to understand these transitions of his franchisee and support him. Moreover, franchisors should teach their staff how to lead effectively and keep franchisees in tune with the system's policies and procedures.

Create brand culture: It is the owner or the franchisor’s duty to build a brand culture that holds all levels of the organisation together, from the owner to employees, franchisees and customers. Other brands should be in awe of the united culture as displayed by the company. This unity shall make you a point above the competitors.

Rewards and appreciate: Franchisees should be rewarded and appreciated openly for their achievements and contribution in the success of brand. This can be done through conventions, meetings, newsletters, and personal correspondence. Moreover in annual meetings, the franchisor should ask all his franchisees for ideas and way to improve his brand. He should integrate the best among them and also appreciate the franchisee who gave the idea. This surely motivates franchisees.   

Rate yourself by franchisees: Franchisees sometimes should be offered the opportunity to rate the performance of the franchisor in support services, products, and commitment to help them achieve their professional and personal goals. Periodic surveys and polling can surely sharpen franchise programs and improve connection with the revenue-producing franchise partners.

In conclusion it can be aptly said that franchisees are one of the foundation pillars for any franchise business. Therefore their contribution is a must for success. However, if franchisees are unsatisfied and unhappy with the franchisor then it would affect the outlet, leading towards shutdown. Thus, it is franchisors’ duty to make his franchise partners satisfied and result oriented.

Related: Marketing mantras to fit well in the franchising frame

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