Shane McNulty

The Franchise Relationship

Better Communication driving Better Results

A franchise can seem like a dream opportunity. You see a café with mouth-watering cakes and happy customers. The success of brands like McDonald’s or Jim’s Mowing. The chance to make money doing something you love.

The reality isn’t quite as rosy. You have freedom, you do something you love, yes. You also have uncertain income, the responsibility of running a business, and lots of hard work! But those are part of running any small business, not just franchises. What franchising offers is a proven business model, documented business processes, and a lower risk of failure.

It also means working with your franchisor. Getting the relationship and the communication right can make all the difference. So how do you do that?

communication starts with the contract

Your franchise agreement is a legal document. It lists everything required of you – and everything required of your franchisor too. Do your due diligence and go through the entire contract carefully.

• If anything is unclear, ask.

• Look for gaps. Can you think of a business activity, issue or scenario which isn’t covered? If you can, discuss it and clarify expectations. These discussions will help you and the franchisor get onto the same page.

understand the franchisor’s perspective

Franchisees and franchisors usually have very different backgrounds and expectations.

Business experience

Most franchisors are experienced, successful business owners. They have a solid business, with documented, repeatable processes. That’s why they’re in a position to franchise. Franchisees may have been employees all their career, then buy a franchise after being made redundant. Alternatively, an employee may go out on their own in the same industry, with the support of a franchise model. If this is you, you may need a shift of mindset to take responsibility for the ‘nuts and bolts’

of actually running a business. It’s the little tasks which were previously done for you – ordering office supplies; chasing overdue accounts; keeping insurances up-to-date. Or perhaps you’re a small business owner considering a franchise. Your challenge is more likely to be around systems and processes, which can be very different from your experience. You may find them restrictive. But they are an important part of the franchise intellectual property, and a foundation of its success.

Level of support and engagement

One attraction of the franchise model is the support you get. Branding and marketing. A business model and documented processes. Training and support. But the support is not unlimited. Don’t expect a business coach and life coach to help you one-to-one. Your franchise business is everything to you, but the franchisor has dozens or hundreds of franchisees. They simply don’t have time to support everyone one-to-one. Also, it’s not

really their mindset. They see franchisees as independent partners, who can pick things up and run with them.

Communication is a two-way street. It’s in the franchisor’s interest to communicate well and have good relations. But unrealistic expectations can make that difficult. Many franchisees want a level of personal attention that the model can’t support. So how do you improve communication, work better with your franchisor and succeed?

shane Mcnulty is an experienced CEO, executive coach, management consultant, facilitator, and trainer with both local and international operating experience . He’s created three successful start-ups as well as managing publicly listed companies. A demonstrated ability in developing strategy and delivering improved sales and financial results. These skills are matched with strong communication skills that create an environment of collaboration with teams & individuals to quickly distil issues and opportunities into actionable solutions. https://www.growthgen.com.au/about-growth-gen

Make the most of onboarding and training

Onboarding is probably the time you’ll get the most attention from the franchisor.

Use it to build a relationship. As noted above, you can’t expect one-to-one communication all the time, but you can establish a personal connection for when you really need it.

ask questions

Some franchisees accept everything the franchisor says as ‘from the expert’. Others want to change how the franchise operates, often because they’re not seeing the results they expected. Neither approach is really effective. Once you’ve bought a franchise, it’s time to sit in the driving seat. You should also be sure you understand how things work before trying to change them. Instead, ask questions. Don’t wait to be told. Start with ‘Why?’ Continue with ‘How?’

‘Why do I pay so much in marketing fees for no results?’

Marketing is often a source of tension, especially if your overall numbers are disappointing. But don’t underestimate the power of branding. People go into a McDonald's because they trust the name. A McDonald’s franchise which does no local advertising will still get customers.

Franchisors invest marketing dollars to build brand goodwill. That’s how Jim’s Group has been able to extend from mowing to offer more than 50 services.

‘How do you do your accounting?’

If your franchisor recommends a specific software, don’t stop there. Ask more questions.

‘How did you get started? Is there anyone who can help set me up?’

Open-ended questions get longer, more informative answers.

“Most franchisors are experienced, successful business owners. They have a solid business, with documented, repeatable processes. That’s why they’re in a position to franchise.”

don’t rely on your franchisor for everything

Running a business is tough. You can’t do it on your own. Your franchisor isn’t always the best person to turn to all the time. They might know an accountant you can work with remotely. They probably won’t know a cleaning service or electrician in your area.

If you have an issue with franchise operations, third party feedback is fantastic. You can get insights into how others see your position, alternative options and good ways to have a conversation with your franchisor. It’s easier to grow as a business owner if you have a safe space where you can open up about your own strengths, weaknesses and current challenges. That safe space probably isn’t your franchisor! Talk to other franchisees. Join a Chamber of Commerce. Participate in small business communities like Growth Gen where you get to tap into the experience, insight and support of other small business owners, in a high-trust, confidential environment and more. Get a business coach.

The truth is, as a franchisee you’re running your own business. Be realistic about what your franchisor can and will do for you. Use a business community to fill the gaps.

In summary:

• Take the initiative

• Drop your ego.

• Ask questions.

• Build your business community. Learn from everyone. That’s how you’ll grow your business acumen, build success and improve your life. v