Organizational Skills All Franchisees Should Possess

Organizational skillsWho hasn’t seen the phrase “organizational skills” listed as a requirement of a position? It might seem excessive that this vague term is so in demand, but the possession of organizational skills can make or break your career success.

While this is true for any role, it is even more integral for a franchise owner. Because there are so many tasks to juggle on any given day, keeping everything organized is the best way to ensure you’re getting the most out of your working hours.

Read on for a look at the essential organizational skills to propel your franchise location toward success:

Scheduling. More than just scheduling shifts and meetings, as a franchisee you’ll be expected to schedule every aspect that goes into running your business. From scheduling progress check-ins for projects to scheduling incentive programs for sales goals, the ability to create a schedule and stick to it is essential to running your franchise.

Delegation. It’s impossible for one person to handle everything that needs to happen to keep a business running smoothly—that’s why delegation is key. By delegating, you’re lightening the load on your own shoulders while empowering your team to tackle the difficult tasks.

Time Management. In many jobs, your time is managed for you. You’re provided with small goals on the way to larger accomplishments and project timelines are completed at your own manager’s discretion. However, as a franchisee, those project timelines and daily tasks are set by you.

People Management. Managing is commonly regarded as a “people skill,” but it takes organizational savvy as well. Planning evaluations, building a successful team and orchestrating group meetings may not be the leadership tasks that get all the attention, but they’re just as integral to being a respected and regarded manager.

Preparation. Being prepared is the key to staying on top of your business routine. Whether it’s taking notes before a meeting with your franchisor or jotting down the next to-do list at the end of the day, starting off on the right foot will keep you from playing catch-up when you should be looking ahead.

If you’re interested in the world of franchising, Franchise Foundry is the best place to turn!

Traits That Make Great Franchisors Great Leaders 

picture1.jpgFrom professional athletes to high-tech programmers, every career requires different talents. However, what makes a career in the franchising industry different is that the skills to successfully lead do not have to be acquired through rigorous training or years of schooling.

Instead, success in franchise leadership can come to anyone who is determined, dedicated and willing to invest in their personal development—and will pay off tremendously by developing a network of franchisees who respect your leadership traits. Below are the skills a franchisor should focus on to become great leaders and successful business owners:

  1. Consistency: As a franchisor, your franchisees will be looking up to you. Being consistent and following through on your word will let them know that they have a leader they can count on.
  2. Planning: Your franchisees are invested in the business, so it’s natural that they will want to know where it is headed. Make sure to plan ahead and share your vision with your employees, too.
  3. Support: As a franchisor, everyone in the organization is your team member—meaning you have a vital role as a pillar of support and encouragement.
  4. Positivity: Focus on creating a positive space for your franchisees. This will help strengthen your bond and let them know you have their back.
  5. Respect: Every franchisee makes mistakes—it’s just a part of the business. Making sure your franchisees know you still respect them even when they slip up will go a long way.
  6. Face Time: You can’t be expected to visit every franchise location every day. However, the occasional drop-in will help you learn more about the day-to-day operations and struggles of each individual location—and let them know you’re invested in solving their problems.
  7. Passion: Franchising means getting to work with talented, passionate colleagues who love what they do. Believe in the brand and believe in your franchisees—your passion will shine through and inspire them, as well.

If you’d like to learn more about being a franchisor and building a successful business, contact Franchise Foundry today.

 

Do Transitioning Corporate Executives [Really] Make Good Franchisees?

This question was discussed on Linkedin approximately a year and a half ago and there were some interesting responses. However, the further we drift from the onslaught of transitioning executives caused by the 2008-2012 economic downturn, maybe we should now pose a different question… How have franchisors fared since awarding focusing on transitioning executives?

We often look at franchise success as up to the franchisor, i.e. it’s the franchisor’s job to be sure franchisees succeed. But of course, we know that not all franchisees, including transitioning executives, are created equal. Some are better than others! People in transition may, in fact, not make very good decisions – maybe they may panic and jump into a franchise too quickly and they don’t do all the homework that’s necessary or possibly don’t ask all the right questions. Some actually have limited skill set to their former job.

It would be interesting for franchisors to reveal how “transitioning executives” have fared, though that’s probably asking a bit too much. Because again, even if the transitioning executives have failed, it doesn’t mean the franchise system is bad. Maybe the system is just not right for certain individuals?

It really doesn’t matter whether a candidate is a transitioning executive or an immigrant national or even a mom exploring business ownership instead of returning to the workforce. What matters is how well prepared a candidate is for franchising (and business ownership) and whether or not the candidate is a right-fit for a particular franchise, and the franchise for him or her. Because we also know that all candidates are not created equal. Nor are franchisors! It’s all the more reason to identify and develop ideal candidate profiles, and keep in mind, there may be several.

Any thoughts?

Local Marketing Challenges: What is a Franchisee to do?

No TomorrowI believe the most common local marketing challenges in a franchise organization are the typical franchisee’s lack of marketing 101 skills, their inability to develop a defined marketing strategy, and certainly their inability to execute any marketing plan. However, let’s be fair. They may not have learned about marketing and marketing strategies.

Now, here’s something that franchisees do know something about, and that’s making things happen. Unfortunately, many franchisees don’t have the drive to do whatever it takes to make it happen as it sometimes means integrating their local marketing efforts with grassroots, guerilla, word-of-mouth, or as I like to refer to it as “get off your ass” marketing.

Many franchisees find it necessary to stand behind the counter and serve the customer when they would better serve the business by getting out from behind the counter and mingling with the customers, visiting other businesses, participating in community events, etc.

The major challenge is that most franchisees refuse to take this approach, feeling they’ve made a large investment and the business should come to them, or put the responsibility on the franchisor, or are just lazy and would rather wait for tomorrow. Well, as Garth Brooks sings, “if tomorrow never comes…” Instead, they need to make it happen today and forget tomorrow, as if there is no tomorrow!

Franchisors Financially Assisting Franchisees: Good Or Bad Idea?

The following article was posted at LSJ.com and discusses franchisors assisting franchisees froma financial standpoint in order for the franchisees to withstand the current economic crisis. But, is it a good or bad idea? Does it set precedence that will become expected at the first sign of economic trouble in the future? Will franchisors’ efforts and goodwill be used to hold them hostage in the future? Read the article and then decide for yourself. We look forward to your thoughts.financial-assistance

Some franchisers taking drastic steps to weather today’s tough economy
Staff and Wire Reports • April 6, 2009 • From Lansing State Journal

Co-signing loan papers, buying out operating contracts and modifying licensing fees are among the aggressive steps some franchisers are taking to help their franchisees weather the chilly economy.

Just like small, independent business owners, many franchisees have struggled amid a lingering credit crunch and weak consumer spending.

Their survival is important. Nationally, franchises accounted for 11 million jobs, or 8.1 percent of the private workforce, and produced $880.9 billion in goods and services in 2005, according to the most recent data available from the Washington-based International Franchise Association.

Franchisers, who license the right to operate businesses in their names, have a vested interest in continuing to attract new franchise buyers and to help their current store operators survive. Fewer franchises mean less licensing – and royalty-fee revenue, on which franchisers depend to survive.

A rash of store closures also can mar a franchise’s brand.

“I think we’re going to see a fallout in our industry just like we’re going to see a fallout in other industries,” said Jeff Johnson, founder and CEO of the Franchise Research Institute. The institute, based in Lincoln, Neb., performs surveys for franchisers that gauge their franchisees’ satisfaction.

The strategies franchisers are employing now are not unheard of even when the economy is good, Johnson said. But some of the more aggressive steps, such as buying back stores from franchisees who want out of their contracts and temporarily foregoing certain fees, are rare.

Restaurant and other food service franchisees have been among the hardest hit by the economic downturn. Health care and certain technology-related franchises still are seeing strong demand, though.

Local and national franchisers say they’re still seeing demand from prospective buyers who want to open new franchises. The biggest problem is securing credit.

“It’s like a pendulum has swung,” said Bob Fish, CEO of East Lansing-based Biggby Coffee, which has 109 franchise-owned coffee shops.

A year ago, Fish said, new franchisees easily could get loans to cover the roughly $300,000 cost to open a Biggby store – even with a company stipulation that franchisees have enough cash to cover about one-third of the cost.

Now, he said, franchisees are lucky to get loans for half the cost. “It has slowed things down, absolutely,” he said.

Fish said his advice to franchisees stays the same: Shop around for a lender.

But some franchisers have stepped in to help applicants obtain financing by being a co-guarantor for loans and lines of credit.

“We have literally done a handful of those, but it is not a big number at all,” said Lee Knowlton, chief operating officer for Scotts-dale, Ariz.-based franchising company Kahala Corp. Kahala’s chains include Cold Stone Creamery, Blimpie, Samurai Sam’s Teriyaki Grill, TacoTime and other fast-food restaurants.

One of the biggest challenges for Kahala and other restaurant franchises has been real estate.

In some instances, franchisees who moved into shopping malls and neighborhood strip centers are struggling because major tenants around them closed.

But the economy has created opportunities, too. With the real estate market in decline, there are deals to be had for commercial space to open new stores, said Brent Taylor, president and CEO of East Lansing-based TT&B Inc., which franchises toy stores.

Taylor owns TreeHouse Toys & Books in Lansing Township’s Eastwood Towne Center and franchises under the Brilliant Sky Toys & Books name.

“We’ve been able to negotiate some real estate deals with landlords that are just unprecedented with what we’ve seen,” he said.

Some franchisers have started buying back distressed stores from their franchisees or letting them be shut down.

Tropical Smoothie Cafe, a Destin, Fla.-based franchise that sells sandwiches, wraps, salads and fruit drinks, reopened two Phoenix-area franchises in the last year. “It’s the very first time that we’ve done anything like that,” said Scott Palmateer, a regional franchise consultant for Tropical Smoothie Cafe.

Delhi Township-based Two Men and a Truck International Inc. CEO Brig Sorber said failing franchises can damage the reputation of the whole system.

So, even as growth has slowed at the moving company – which added only six franchises last year – Sorber is focusing attention on improving existing operations.

The privately owned company, with about 200 locations, has been hurt by the national decline in the housing market – which means fewer people are moving.

Two Men is working on ways to help its franchisees cut costs and to get into new markets, such as moving for businesses and interstate moving, Sorber said. “There’s less moving going on, but there also are less people doing the moving,” he said.

Lansing State Journal business reporter Jeremy W. Steele and Andrew Johnson of the Arizona Republic contributed to this story.

Franchise Growth: Are Concessions and Discounts Necessary?

This article is based upon a recent discussion in a LinkedIn franchise group. The original discussion posted the question, “What kind of discounts or concessions are required now to get a franchisee candidate to move forward?” and generated many responses and different views. The following is my response when my view about getting back to basics was preceived to be fine during “normal” times as opposed to during more difficult times, such as the present. A subsequent response from another franchise professional implied there are too many franchisors. I’ve addressed that as well.

discountAlthough it’s certainly easier to accomplish franchise growth during “normal” times, the basics need to be in place even more so during tough times. That’s not to say we don’t need to think and act outside-the-box to make something happen. It just means we need to be extra prudent and diligent in our actions and not use the economy as an excuse for poor execution of skills.

If we are to offer discounts and concessions in awarding franchises we need to be extremely careful we don’t oversell or create the perception of desperation. By doing so, we’ll either lose the deal or create a situation whereby the franchisee will not have respect for the franchise system and feel if one or two concessions were made initially, why not more moving forward? And then, there’s the perspective of franchisees already in the system that paid full amounts without concessions. What’s in it for them?

Nevertheless, with reports like Franchise Update’s about poor franchise sales performance and practices, I can’t help believe franchise systems wouldn’t be in better shape if their sales basics were perfected. It has to start with the basics before changing direction or considering revisions to the program.

In any business, just like in any sport, when a slump is emminent, it’s the fundamentals that need to be worked on before anything else should be considered or entertained. Once that’s done, then it makes good business sense to consider other options. At the very least, it should be done simultaneously. If not, what’s going to be the excuse when concessions and discounts don’t work?

PS – Saying there are too many franchisors is akin to saying there are too many businesses of the same kind. What happened to free enterprise and entrepreneurship? Maybe, franchising could be better served by more regulation, licensing and policing, to weed out the weaker (for whatever reason) franchisors and make it more difficult to become a franchisor. Unfortunately, I don’t see that happening because the “big boys” of franchising will squash those efforts in a New York minute. I look forward to debating this topic in a different discussion or forum.

Transitioning Corporate Executives as Franchisees

Recently, I posted a discussion on LinkedIn about whether or not transitioning corporate executives made good franchisees. Most responses came from individuals from within the franchise industry. Some, from outside the industry. Several responses were based upon actual experience while some were simply opinion. For our readers’ benefit I’ve listed below several of the responses which I feel provides a fair cross-reference of responses. In doing so, I’ve given credit for each response but only according to respondents’ titles as identified through their LinkedIn profiles.

Guerrilla MarketingCoach, behavioral analyst, speaker, author, student of life – “Really interesting question. In my “past life” I worked in franchising and my general observation is that while a franchise offers a great framework and tool-kit for someone starting a business, it does not guarantee success.

People who buy a franchise understanding that they will have to work (and hard) to grow a successful business, and who are committed to using the franchisors tools and resources, are likely to be quite successful. On the other hand, those who think that a franchise is going to be a “magic pill” that allows them to prosper without putting effort into it are surely destined to something far less than success.

Anyone looking at a franchise should take their time, talk to other current (and former) franchisees, find out what is involved in success, and what may contribute to failure within that particular franchise. Then, each person has to look deep in themselves to understand if they are truly prepared to start a business…”

Franchise Information, Mentoring & Development Professional – “Interesting question, Paul. As I’ve thought about it, I don’t think it’s an easy question to answer. Or the answer would have to be fairly simple, such as Yes and No! (Not very helpful, I realize).

Maybe we could ask the question another way. How have franchisor succeeded when they awarded franchises to transitioning executives? . . . Puts a little different emphasis on it.

We sometimes look at franchise success as up to the franchisor, i.e. it’s the franchisor’s job to be sure franchisees succeed, and that includes transitioning executives. But of course we know that not all franchisees, including transitioning executives, are created equal. Some are better than others! People in transition may, in fact, not make very good decisions–they may panic and jump into a franchise too quickly and they don’t do all the homework that’s necessary or they don’t at least ask all the right questions.

It would be interesting for franchisors to reveal how “transitioning executives” have fared though that’s probably asking a bit too much. Because again, even if the transitioning executives failed, it doesn’t mean the franchise system is a bad one. Now it may not be right for transitioning executives, but that’s probably incorrect. Would that be like saying it’s not right for left-handed people? I just don’t think “transitioning executive” matters. What matters is how well prepared the candidate is for franchising and whether or not the candidate picked a good franchise. Because we also know that all franchisors are not created equal, either. Some are better than others–and I bet there are some that could tell us 100% of the transitioning executives that joined them succeeded.”

Director of Operating Systems at a National Foodservice Franchisor – “It depends…. There is a significant difference between being a corporate executive and a franchisee. As a corporate executive of a brand you have a wide and deep support system with interdepartmental experts that can solve problems or point you in the right direction with one phone call.

As a franchisee you are “it”, unless you buy into a multi unit franchise that can afford a support system that can make up for the skills that you lack or don’t have much experience on (accounting, finance, legal, HR, workers comp., marketing, training, operations, etc., etc., etc.).

The corporate executives that I have seen succeed are those that had an entrepreneur mind or prior experience running a business and quickly understood that forming that support system (internal or external) was crucial. It is not that corporate executives don’t want to do the hard work, it’s just that they are not used to think at the level of detail that is necessary to be successful and therefore they are not familiar with all of the intricacies of running a business.

Franchisees need to be generalists and not specialists. Corporate executives are usually very good at the role that they had in their corporate career. While they will understand the brand’s perspective and strategy better than the average franchisee; they would only make the best franchisees if they are able and willing to adapt quickly to the demands of being a small business owner.”

Strategic Performance Oriented Franchise Executive – “I doubt there are reliable statistics to support an empirical conclusion to your question.

However, my opinion for what it’s worth is that when people make decisions to become franchisees out of desperation to replace a job/income it can be problematic as opposed to someone who transitions from employment to self-employment on their own terms.”

Are Franchisees Entrepreneurs?

In business circles we frequently hear and make reference to “entrepreneurial spirit.” It’s this spirit that drives an individual to taking risks, sometimes calculated, but not always. “Spirit” is often associated with “free.” Sir Richard Branson of Virgin Airways fame, among other successful business ventures, would definitely be considered a risk taker, an entrepreneur and free-spirited.

It’s often been said that individuals explore franchising due to it being less risky than starting a business from scratch as the franchise comes complete with a proven business system. The old adage about being in business for yourself, but not by yourself, creates a nice, warm sense of security that a franchise can ultimately provide.

Minimized risk. Proven system. Sense of security. Could you really see Sir Richard as a franchisee? So, if Sir Richard Branson epitomizes the true entrepreneurial spirit, my question remains, “Are franchisees entrepreneurs?”