Multi-Unit Franchisee Magazine Issue IV, 2015 | Page 65
Counts!
Culture
BY ERIC STITES
Building a Culture of Trust
T
he difference between a
weak and a strong franchise is often the alignment
between franchisor and
franchisees. Franchise Business Review’s
franchisee satisfaction research shows that
franchise brands with strong cultures:
1) have extremely high satisfaction and
engagement among their franchisees,
and 2) outperform their competitors by
a factor of 300 to 400 percent.
Great company cultures don’t just
happen. They are always the direct result
of inspiring leadership and constant efforts to grow, learn, and improve. Trust
also plays a crucial role: its absence creates a barrier to performance, while its
presence, which promotes creativity and
teamwork, accelerates it.
While many franchise brands pay lip
service to building trust with franchisees, few actually do. Before you invest
in a multi-unit opportunity, be sure it
is trust-worthy by asking the following questions of those who know the
most about its culture and leadership:
its franchisees.
1. Are realistic expectations set?
You don’t want to invest in a franchise
that sells “sunshine and rainbows.” It’s
important to look for one that sets realistic expectations of what your franchise
life will look and feel like.
2. Does the franchisor operate
transparently? Franchises with happy
and productive franchisees empower
them by freely sharing information,
which helps them feel like an integral
part of the company’s growth and success. Find out if the franchisor communicates openly and honestly, shares
corporate and unit-level performance
data system-wide, encourages healthy
competition, and ensures that best practices are shared.
3. Are franchisees engaged? Does
the franchisor regularly seek its franchisees’ opinions and involve them early on
about all major decisions? In response
to the question, “Senior management
involves franchisees in company decisions,” there was nearly a 100 percent
increase in how franchises at the top
ranked, compared with the lowestranked franchises surveyed (see graph).
4. Do franchisees and corporate
share the same vision? Shared values
and a common vision drive franchise
success. Does corporate listen to its
franchisees’ goals and vision and consider them when outlining action plans?
5. Does the franchise question everything and measure constantly? The
best brands are obsessed with getting
better. They regularly and systematically
measure franchisee satisfaction, address
critical issues, and are constantly looking for ways to improve results.
It is clear from our data that the
chances of your succeeding in franchising dramatically increase if you take the
time to identify a brand that collaborates
with its franchisees to build a strong
culture based on trust.
Eric Stites is CEO of Franchise Business
Review, a national franchisee satisfaction
market research firm.
Cultural Differences Between Franchises Ranked
Cultural Differences between Franchises Ranked
Highest
and Lowest By Their Franchisees
Highest and Lowest by Their Franchisees
shows
percentage
of
two
survey
most
posi2ve
survey
response
op2ons
(“Agree”
("Agree"
and
"Strongly
Agree")
to
each
Chart shows percentage ofChart
two
most
positive
response
options
and “Strongly
Agree”) to each statement
statement
by
franchisees
of
the
top
and
bo>om
25%
of
approximately
350
surveyed
franchise
brands.
by franchisees of the top and bottom 25% of approximately 350 surveyed franchise brands.
Top 25%
Bottom 25%
n TOP 25% n BOTTOM 25%
94%
92%
93%
89%
88%
77%
65%
60%
65%
63%
54%
54%
33%
trust my
my franchisor.
actsacts
with
I Itrust
franchisor. My
Myfranchisor
franchisor
with
a high
a high
levellevel
of of
honesty
integrity.
honesty &&integrity.
My
franchisor
a Senior
Senior management
management
Myfranchisor
franchisorcares
cares
My
cares
about
my
success.
encourages
strong
bout my
encourages aastrong
about
mysuccess.
success.
team
curture
team culture.
culture.
36%
Senior management
management Overall,
Overall, II am
am satisfied
would recomment
this
Senior
satisfied II would
recommend
involves
franchisees
this
franchise
to
involves franchisees
in with
withthis
this franchise.
franchise.
franchise
to others.
in company
decisions.
others.
company decisions.
Source: Franchise Business Review, 2015
Source:
Source: Franchise
Franchise Business
Business Review,
Review, 2015
2015
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