Five ways to improve struggling franchisee performance
The success of a franchise brand is dependent on the success of the franchisees within its network. Manging a franchise operation is a demanding and multi-faceted role, and as well as all of the strategic tasks and decision-making involved in keeping the entire business and brand moving forward, it is vital that the franchisor has a constant overview of how the network as a whole is performing as well as what is happening across the individual locations.
The franchise recruitment process marks the start of the franchisor-franchisee relationship, and I've previously written about how crucial it is to get those recruitment decisions right - get it wrong and the implications can be both stressful and costly. However, even if that initial recruitment decision was the right one, in any franchisee's journey as a business owner there are likely to be periods when things aren't going quite as well as planned or the business goes through a bumpy patch As a franchisor, being faced with an underperforming or struggling franchisee can arouse uncomfortable emotions - after all, no one wants to think that they have an unhappy team member in their midst. But taking steps to attempt to address the issue and support the franchisee to turn things around before deeper problems begin to take root is essential, whether or not that means having to open up some difficult conversations along the way.
So when there is a franchisee within their network who appears to be struggling, how can a franchisor look to support them and improve performance?
Identify the root cause of the problem
Open and honest communication is key within any successful franchise network and when the chips are down, just as in any other relationship in life, talking to the individual in question should always be the first step. Identifying the root cause of the franchisee's difficulties is crucial, and that might not always be entirely business related. There could be personal or health issues at play, or geographical or environmental issues affecting the performance of the franchise location. It's impossible to look to implement effective improvement and support strategies without knowing exactly what needs to be remedied. Open lines of communication should also help to ensure a smoother path back towards success - if the franchisee feels that the franchisor is on their side and willing and able to help them to address whatever the problem or problems are, they are far more likely to engage with whatever action may be needed.
Tailor training and support
Once the root cause of the franchisee's issues can be identified, obvious gaps in training and knowledge may become apparent and a training and support plan can be put into place. Ongoing and refresher training, support and development should always form part of the franchisor-franchisee relationship in any event but sometimes a busy franchisee with their head down in the day-to-day running of the business may have neglected to devote the time needed to it and to update themselves with new systems, resources, changes in consumer habits or marketing activity. In scenarios where a deep dive into the business has revealed a number of actionable issues however, its important not to to overload the franchisee with too much at once as this could easily overwhelm the business owner who is already struggling. Prioritise the most urgent points that require remedial action, tick those off and then move onto the next steps.
Review plans and KPIs
When there are either issues with performance or a general malaise or lack of motivation, revisiting the franchisee's business plan and KPIs can not only help the franchisee to refocus but can also provide an opportunity to reset parameters. Taking time to do this together can help the franchisee to refocus on their goals and ambitions and remember the entire reason why they joined the franchise in the first place. Focusing on the positives and those things that have gone well to date whilst working together to set some achievable short term goals and KPIs should help to motivate the franchisee and get them moving forward. It's human nature to respond positively to praise and appreciation and as the saying goes, celebrate the small wins - doing so might just help a demotivated franchisee to rediscover their mojo! Reversely, a long term franchisee might simply have fallen into a trap of complacency and need some new targets to strive for to keep them hungry for success and ready to move the franchise forward again.
Implement peer support
A franchisee in crisis will of course benefit from the intervention, knowledge, advice and support from the franchisor to help them to tackle the difficulties that they are facing and put strategies in place to get their business back on track. However, what cannot be underestimated is the value of peer support - having the opportunity to be aided, encouraged and inspired by someone else walking the same path as you. Providing opportunities for a struggling franchisee to speak to and learn from other franchisees who may have experienced similar challenges can generate incredibly positive results, and it is very often the case that a franchisee is more likely to follow advice from their fellow franchisees than their franchisor!
Communicate and monitor
Having taken time to identify the cause or causes of the franchisee's difficulties and put a well considered action plan and strategies in place to help tackle them, it is important that the franchisor does not now simply walk away and consider the job done. A franchisee who has been struggling should be considered "at risk" for a period of time and support and monitoring should be ongoing to try to ensure that things do not take a downward turn again. Maintain those lines of communication, check in regularly, have one to one meetings....monitoring the franchisee's progress and pathway back to success will help to quickly identify any additional hiccups that might occur and keep the franchisee engaged, motivated and feeling supported.
Of course, there will be occasions when a situation is not salvageable, where the relationship between franchisor and franchisor has deteriorated to such an extent that it is no longer viable to continue, or where the franchisee's difficulties or actions are so serious that they require the franchise contract to be terminated. In such a scenario the franchisor will need to be ready to take quick and decisive action to protect the franchise brand and the rest of the network and hopefully exit the contractual relationship on as good terms as possible. However, in many more cases an under performing franchisee can be steered back on course, and in showing their willingness to intervene and provide assistance, understanding and support the franchisor will demonstrate to the whole franchise team their commitment to them and their individual businesses. Engaging with and assisting a struggling franchisee should also give the franchisor food for thought going forward - there is always something to learn from each experience and it is an opportunity to review recruitment, training, support and other provision moving forward, to give each franchisee the best possible chance of success.
