What Do Excellent Franchisees Have In Common?

Buying a franchise is only the start – building a business takes longer. Greg Nathan explains how to work the wheel of excellence to achieve success

Over the past 30 years or so, I and my team at the Franchise Relationships Institute (FRI) have talked to hundreds of franchisors and conducted research with thousands of franchisees. One of the questions that franchisors often ask us is: ‘What do excellent franchisees have in common?’

It’s a great question, and it’s just as relevant if you are about to buy a franchise. If you’re reading this article, you might be in the early stages of what we call the Franchisee Journey, learning what it takes to be a franchisee and if it’s for you. So here’s something to consider: you might be buying into a well-known brand with great systems, thorough training and all sorts of ongoing support, but it’s up to you how you put all these elements together. The better you do that, the more likely you are to build a business that delivers on your ambitions.

So what makes some franchisees top performers while others just achieve? If you want to be an excellent franchisee, read on.

What is excellence?

At the FRI, we believe that excellence is performing every aspect of your work to the highest standard. In business, this relates to how you deliver your product or service, how you organise your work, how you deal with other people, how you manage your finances and, most importantly, how you handle yourself. The better you do all that, the more satisfaction you will have from your work – and the better the results you will achieve.

A few years ago, we studied the backgrounds, attitudes and habits of over 2,000 franchisees and then looked at their levels of success and satisfaction to see what patterns emerged. The study found that excellent franchisees focus on five areas which combine to form what we call the Franchisee Wheel of Excellence. By understanding these areas and working on them from the start, new franchisees can maximise their investments.

1. Build supporters

Life is a team activity, and those who learn to play well with others are the winners. Excellent franchisees continually build commitment from the people on whom their business depends. For instance, the most important job of a franchisee who employs staff is to build their commitment and capability, and to get them to treat the business with the same care and enthusiasm as if it were their own.

Our study showed the support of family and an extended network of well-wishers including friends, colleagues and mentors also play a critical role in a franchisee’s success. Members of the franchisor team can be particularly valuable supporters, as can key suppliers. Successful franchisees build constructive working relationships with these people. And there is the most important group of all – customers. Without their advocacy and continuing support, there is nothing.

In creating a cheer squad for your business, therefore, you are building a network of people that will go out of their way to help make you a success.

2. Engage with the brand

Our Franchisee Success Study discovered that franchisees with high levels of brand passion (that is, people with pride and a strong belief in the franchise system) were making more money, delivering better service and contributing more to their franchise community. These franchisees were also 35 percent more satisfied overall.

Brand passion is the fuel that drives engagement, enthusiasm and great customer service. This passion drives your participation and contribution to the franchise network, as you help the system (and other franchisees) do more and achieve more. The more a franchisee engages with a brand and embraces its values, the more successful they will be, so don’t expect to sit back – be prepared to get active and get involved.

3. Drive growth

It takes courage to take the plunge and go into your own business. Because the cost of doing business increases constantly, you need to sell more, find more customers and keep the ones you have.

So, excellent franchisees are pro-active, sales-oriented, and committed to growth. However, this commitment is not just about sales. It includes a commitment to grow your skills as a business owner and to grow the capability of your team. People like to be challenged and feel they are part of something that is growing, so it will help you attract and retain good people – as well as reward them better.

4. Maintain vitality

Vitality is all about physical energy, mental clarity, emotional health and a strong sense of purpose. It’s having the confidence, presence of mind and vigour to apply yourself to anything with motivation and joy - also known as keeping your mojo!

Our study revealed that 35 percent of franchisees work more than a 50-hour week and 49 percent say they find running their business emotionally exhausting. To maintain excellence in these circumstances, you need to be in top condition and master the four vitalities – physical, mental, emotional and intentional.

Physical vitality enables us to put in the long hours often needed to build a business – and to not cut corners through laziness or tiredness.

Mental vitality enables us to be sharp and clear in our thinking. Being calm and curious about what’s going on are the superpowers of excellent franchisees.

Emotional vitality comes from an attitude of gratitude, accepting help when offered, and bouncing back from disappointment as a lesson in learning.

And Intentional vitality comes from staying connected to your sense of purpose.

Because culture always starts with the leader, high levels of vitality also help to build a positive, vibrant culture. Effective business leaders inspire others, not only through their intelligence or their skills, but through their vitality.

5. Master what matters

Excellent franchisees also showed us that they master what matters. They think strategically, keeping in mind the bigger picture of why they are in business in the first place. Mastering what matters means:

– Being able to pull out of the daily grind and look at your business strategically – to work on your business, as well as in it. Our Study indicated this approach resulted in 10 percent better financial performance than those who were working hands-on in the business full time.

– Having a routine for establishing and reviewing meaningful key performance indicators that tell you if your business is on track for success.

– Having documented standards and procedures in place, so that everyone understands what to do, how to do it and why. The best-performing franchisees said that one of the top three things they valued from their franchisor were systems they could use to help them run their business more efficiently.

– Investing in the development of your people. The real test for mastering what matters is if a franchisee can consider having a holiday and leaving the business in the hands of their team, knowing all will be well as they are properly trained and there are systems for every contingency. This is also essential for franchisees wanting to expand their business by operating multiple units.

Start as you mean to go on

In summary, our study showed that franchisees who ‘work the wheel’ were not only making more money – they had less stress and were generally happier with their lifestyle. Importantly, they also recognised that the success of their business didn’t just rely on the franchisor – it also relied upon their own activities, energies and leadership.

If you’re currently looking at becoming a franchisee, it’s important to be aware of this. Know your abilities and your goals, and look for a business where you can invest your time and money in a way that will truly satisfy you, while providing you with the support and systems you need to succeed. Then work the wheel – and strive for excellence.

About the Author

Greg Nathan is founder of the Franchise Relationships Institute, a renowned speaker at franchise events world-wide and author of several books on franchising.

The Franchisee Wheel of Excellence