What Makes a Successful Franchisor
Over the years of providing outsourced bookkeeping services to franchisors and their franchisees, we have discovered that certain characteristics are required for a franchisor to be great.
Not all successful entrepreneurs make excellent franchisors—it takes a somewhat different skill set and personality type.
Guiding franchisors in financial recordkeeping practices that lead to well-informed business decisions, we have found 10 super powers franchisors need:
Passion
A good franchisor needs to be able to inspire their team of franchisees and customers buying the product or service. Enthusiasm and passion, with a belief in the values and aims of the business, can cascade down the chain.
Supportiveness
The signing of the franchise agreement is just the beginning of your relationship with the franchisee. Good franchisors know the value of investing in ongoing support and training for the team. They listen to stay in touch with what the group needs from management.
Communication Skills
It is vital that the franchisor be able to communicate the vision for the brand to the franchise team and model two-way communication.
A franchisor who ignores feedback is being short-sighted. Franchisees working on the front lines provide valuable information about
- what’s working and what isn’t, along with
- what’s profitable and what isn’t.
Capturing this information and acting on it is critical to the success of the brand long-term.
Openness
A good franchisor is open about
- any hurdles the business has or may face,
- how the brand can adapt to them,
- how the brand has learned from its mistakes,
- business developments and
- how these developments may impact franchisees
Adaptability
Everything changes, and it seems like things are changing faster than ever these days. Consumers are fickle, new trends pop up and competitors show up out of nowhere. A good franchisor is always looking forward to see how the brand and its products/services are going to need to pivot.
Gratitude
A great franchisor nurtures a positive culture, values the contributions of each team member and shows appreciation regularly.
Leadership
The person at the top of the business needs determination and resilience to lead. It’s also important that the franchisor be visible, and inspire from their own experiences rather than dispense orders and demands from afar.
Ability to Get Personal
As a franchise network grows, it becomes more and more difficult for the franchisor to keep in close touch with every franchisee. But doing so pays dividends. Personal site visits go a long way toward maintaining bonds with the team. These visits say, “You matter. I care about you.” During the time on-site, the leader can gain insights by reading the atmosphere and interacting with franchisees and their employees.
Collaboration
A good franchisor believes in and models collaboration both internal and external:
- They know the benefits of franchisees working
- They also know the value of collaborating with industry leaders outside the brand to help keep it relevant and advancing.
Operating in a bubble doesn’t work today.
To be great, a franchisor must understand the critical nature of a strong franchisor-franchisee relationship. A team of franchisees is not only a way to expand the brand; it’s also a talent pool of people to respect and value.
A tight team is an opportunity to share experiences, advice and best practices–and to support one another on the business journey.
Ability to Seek Help
A franchisor can’t be everything to everyone all the time. It makes sense to outsource tasks that don’t contribute to revenue—like payroll, bookkeeping and tax accounting. BookwerksTM specializes in meeting the unique bookkeeping needs of franchises.