Harnessing the experience and knowledge within your franchise network.
I don’t know what the collective salaries of the marketing department at Mcdonalds was in 1967. But despite all the know how and qualifications they probably had, it was Jim Delligatti who came up with the great name of The Big Mac. He was a franchisee in the Pittsburgh area who was in tune with his client base to such an extent that the Big Mac is now one of the world’s leading fast moving consumer good brands. Well done to Mcdonalds for running with it. Many Franchisors wouldn’t have done so.
If you’re a franchisor yourself you could do a lot worse than listen to your franchisees.
When one of my franchisee colleagues recently amended our standard format for Lime Licensing Group’s internal month end reports I didn’t in any way sigh. But looking skyward would be the response of many Franchisors who always think they know best. Instead I was keen to see what the amendment was to judge it for myself. Guess what? It’s an improvement. So thank you for that Patrick Burge. We’ll adopt it as the new format going forward.
Now don’t get me wrong I’m not always going to agree that an improvement is an improvement. Often it isn’t. However there have been many occasions when I’ve agreed, and many when I’ve disagreed. As a result everyone knows that they can try me without fear of being shot down in flames. It’s not my way or the highway, I just have a casting vote. Someone has to have that or the franchise system crashes.
Does a new franchisee have any real credibility?
Probably not, but occasionally they do. Lime Licensing Group has been going 16 years already. I was in the trenches of franchising for 14 years before that too. Lime Likening Group is my 6th franchise brand run with my colleague and great friend Richard Pakey. My previous franchise brands resulted in several hundred franchises operating in retail supply, consultancy, wedding and events and management consultancy. Now at 59 years old I know that my judgement is mainly accurate. But never 100% accurate. Anyway, the point is that It’s common that new franchisees come up with suggestions. If you’re a franchisor reading this I know you’ll have experienced this. The problem is that they don’t have the benefit of all the years of evolution that has got the brand to where it is today. It isn’t always immediately obvious why things are done in a certain way.
Occasionally a new franchisee hits a nail on the head. They see something everyone else has missed. Have they just suggested the next Big Mac? It’s up to you my Franchisor friend to listen. Then judge. You’ll likely spend a large proportion of time explaining why you’re not going to adopt the suggestion, but the top Franchisors always listen. As a result the nuggets that are suggested can be instrumental going forward. Everyone’s in the same boat remember.
Listening to brand new Franchisors.
I’ll chat to a brand new franchisor, maybe at a show or event (often with a canapé and a beer in hand). They’ll say something to me that sometimes makes me stop and think. How did I not think of that despite doing this for thirty years? Sometimes it needs a fresh pair of eyes to look at franchising because when you’ve been a franchisor and franchise consultant for as long as I have the danger is you just keep rolling out the same things. I’ve always tried not to do that. But old habits persist and I have to stop myself from thinking I know best.
My advice to you Mr Franchisor is to plough your own furrow firstly, and every now and then look at what other Franchisors are doing. Is there something there that would benefit your system? Is there something that no longer serves your commercial interests but you’ve just kept on doing it anyway? Don’t be afraid of change, as James W Keyes said “change equals opportunity”. I love how he expressed that point and what it might mean for shareholder value.
Suppliers are only interested in themselves.
A franchisee called me yesterday from one of those educational kids franchise networks. She wanted to sell and hire us as their broker to sell their franchise. After listening to her I realised she didn’t actually need a broker, she could achieve what she wanted herself. I explained how and wished her well. Now she might come back and pay me. But she doesn’t need me. She might want me Yes, but that’s a different thing. I don’t need a gardener but I still want one. She’s got some free advice and she’s taken it onboard. You can do the same listening to your suppliers but just try and identify when advice is in your commercial interests rather than theirs. Every day’s a school day either way.
Then there’s your customers, the most important voice of all.
Aren’t they all wonderful? At least the ones that pay their bills are. Many years ago a consultant whose name I have long since forgotten said to me that he always liked to have a goodbye meeting when a client dumped him. I found this to be an odd thing. I still do. It’s all a bit late in the day. However the general point was that the unpalatable truths they give him may well improve his offer to the next customer. Which means that over time he gets better and better. if he thinks it has validity. No such thing as failure only learning. I admired his ability to face the music head on. The feedback he got wasn’t always helpful to him though.
Knowing & Doing.
Knowing how to do it is the easy part. But in most businesses success lies in the implementation. Franchisees with identical commercial environments, the same working capital and the exact same training and support don’t perform to the same standard. Some simply work harder than others. Some are simply better at the implementation. In my experience the top performing franchisees are the ones who can do both. It’s the Franchisors job to improve the system and keep their eyes and ears open. Your network is your primary source of feedback, good and bad.
Stay open to suggestions from your franchisees, your peers, your suppliers and your customers. As a result you can cherry pick elements you like. Maybe implement many small things which collectively add up to something big. Maybe one day, if you’re actively listening, someone like Jim Delligatti will suggest something. Then you’ll be glad you listened and acted on it.