Franchisors: Are your Franchisees "Raving Fans"?
While "franchisee failure" may be inevitable for a select percentage of franchisees and, in may cases, may have nothing to do with the franchise system (i.e., a franchisee who refuses to roll up his or her sleeves and commit to hard work), one thing that this economic downturn has exposed is the fact that many franchisees (too many) are not "raving fans" of the franchise system(s) in which they operate. In speaking with franchisors and franchisees over the past number of months, one critical issue that appears to be adding to this disconnect may be franchisor implemented policies designed to generate additional franchisor revenue through "non-franchisee" channels of distribution. When evaluating your franchise system and the potential for generating additional system revenues, one critical resource that is often overlooked is "existing franchisees". Recently, after reading Ken Blanchard and Sheldon Bowles insightful book, "Raving Fans - A Revolutionary Approach to Customer Service", it became clear to me that too many franchisors are overlooking a critical asset and opportunity: revenue growth generated by existing franchisees who are converted to "raving fans".
Again, while not all franchisees are right for every franchise system and while certain franchisees may never "get it", as a franchisor, I believe that you must develop the systems, procedures and policies that will turn your franchisee base into "raving fans". Following the advice of Mr. Blanchard and Mr. Bowles, you should start by assessing and understanding:
(a) What you expect from your franchisees;
(b) What your franchisees want from you; and
(c) How to deliver what your franchisees want "plus" an extra one percent.
Evaluating and understanding these factors / answering these questions, can only help to further refine and improve your franchise system. The incremental sales (in terms of franchise unit growth and gross revenue) that could be generated by franchisees that are "raving fans" could prove substantial and, in my opinion, represents a critical resource that many are overlooking. If you have not read "Raving Fans", I strongly recommend it.
I always read this blog and am grateful that I am able to comment and that my comments are not censored
Of course, many franchisees are not raving fans of their franchisor because, unfortunately, they were in that "select percentage" of franchisees who fail --and were not informed of the odds of failure, as known to the franchisor, before they bought the franchise.
I rather doubt that there are many franchisees, who have their own money and time invested in physical units, who don't work hard to make their businesses succeed because, of course, they bear the entire cost of failure.
Unfortunately, the weak, ineffective, and dishonest regulation of franchising by the government works against prospective franchisees and also against franchisors who indulge in uncontrolled growth and short-term vision to maximize their profits at the expense of franchisees.
But, I buy Charles Internicola's always excellent advice that "raving fans" in the form of happy and satisfied franchisees is a resource that franchisors are overlooking.