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4 common franchisor mistakes and how to avoid them

By FranChoice Blog | Jun 5, 2019

common franchisor mistakes

If you’re seeking to expand your business through franchising, watch out for common franchisor mistakes. Not every business is suitable for expansion via franchising. But for the right company, it’s a great way to expand the reach of your business and increase your income.

Many factors will affect your success at franchising. Is your business model easily replicated? Is your brand strong enough to generate business for franchisees? Carefully evaluate your business and be strategic in your expansion. Watch out for these 4 potential pitfalls. They are all-too-common franchisor mistakes.

Cutting corners on legal and sales advice

Failing to get expert legal and sales advice tops the list of common franchisor mistakes. Complex laws and regulations abound in franchising. Consult experts from the start to avoid headaches later. Don’t balk at legal fees or be tempted to cut corners on legal advice, which will help you build your business on a sturdy foundation. In addition, be mindful of all the sales strategies that franchising entails. There’s a lot to oversee, ranging from bringing on franchisees to attracting customers, maintaining their interest, and cultivating relationships over time. Working with vetted franchise sales consultants can be well worth the investment.

Failing to value your franchisees

Franchisees are independent contractors, so keep in mind that you’re not their “boss.” They’re investors who you’d be wise to treat as your equals. Be particularly careful when recruiting and avoid creating unrealistic expectations. Misplaced expectations can lead to unhappiness and, ultimately, the failure of a franchisee. Put time, money, and effort into building long-term relationships with your franchisees and realize the importance of keeping them happy. Disgruntled franchisees can hurt the brand.

Guarding your “secrets to success” too closely

It takes charisma and chutzpah to build a successful business. But many entrepreneurs severely underestimate the degree to which the success of their business depends on their personal involvement. Since you can’t replicate yourself, it’s critical to connect franchisees to the heart, soul, and spirit of your brand. The best way to do that is through great training resources. Offer franchisees immediate, easy access to a full suite of educational tools. Share with them your secret recipe for success, so they can replicate it.

Biting off more territory than you can chew

Plan your growth strategically. It’s wise to first expand into local or regional territories rather than trying to conquer the entire country all at once. Some savvy franchisors divide the map into territories to be managed by regional developers. The regional developers recruit new franchisees and provide support to developing units. With such regional experts on board, you can gain insight into regional and local demographics. This helps with more effective sales initiatives, marketing, and messaging.

If you’re looking to expand your business, franchising can be a winning solution. But make sure you take into consideration these common franchisor mistakes. Forewarned is forearmed.

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5 Tips for Effective Employee Development

By FranChoice Blog | May 29, 2019

employee development program

Employee development is increasingly important in the marketplace. Today’s employees expect opportunities for skills development and a clear career path to help them get ahead. In addition to increasing employee engagement and productivity, effective employee development also garners a measurable return on investment (ROI) for your franchise location.

What is employee development?

According to a Workplace Learning Report by LinkedIn, typical objectives of an employee development program are:

  • Developing managers and leaders
  • Helping employees develop technical skills
  • Training all employees globally in one cohesive way
  • Supporting career development for employees

Employee development and training usually addresses two categories of skills: 1) technical skills needed to perform specific job tasks, and 2) leadership skills that focus on employee growth and performance. Leadership skills training might, for example, include strategies for making decisions under pressure, techniques for constructive conflict management, and/or tools for effective communication with customers and other employees.

Successful training and development programs provide employees with much more content and value than, for example, the standard new hire orientation. They are more than just sporadically offered opportunities or courses that employees can choose to take as needed. Here are 5 tips for developing an effective program.

Tip #1: Align employee development with your business needs

An effective program aligns individual employee growth with franchise unit goals. For example, if your goal is to increase sales within your franchise location, sending your employees to a sales training or customer service boot camp might be useful.

Tip #2: Work with employees individually

Talk to your employees about their skill levels and career goals. Then, once you have a good understanding, assess the skills they’ll need to work on and help them create a career “road map.” According to LinkedIn’s 2019 Workplace Learning Report, identifying, assessing, and closing skills gaps are top priorities of today’s development programs. Remember to make sure your employee road maps align with the needs of your franchise operation.

Tip #3: Develop a learning culture

Develop a welcoming, collaborative work environment that enables employees to pursue learning opportunities. Document training opportunities in the employee manual, and encourage employees to speak up when they find new educational opportunities.

Tip #4: Offer a variety of training and development opportunities

Training and development can take many different forms, from self-directed online courses to formal classroom training. It need not be expensive. A few examples include:

  • Encouraging employees to join local industry groups
  • Providing high-performing employees with stretch assignments and special projects
  • Offering individual mentoring and coaching

Think creatively in order to help each employee grow.

Tip #5: Measure your results

Be sure to identify your return on investment (ROI). Your employees must show that they can use their newly developed skills in a way that benefits your franchise unit. Set up opportunities for employees to demonstrate their new/improved skills and get feedback from managers, peers, or customers. If possible, measure results before and after training. Did training improve efficiency? Reduce the need to hire new employees? Boost sales?

The benefits of effective employee development compound with time. You’ll reap the most significant return if your efforts are strategic and offered over the long term.

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