Every franchisor should care about the personal and financial success of individual franchise owners. After all, great results at the unit level benefit both the parent company and its franchise partners.
However, because franchisors receive a portion of their franchisees’ revenue – not profit – they sometimes show little interest in franchisees’ profitability and satisfaction. It’s up to each franchisor to commit to building a healthy system – without growing at the expense of franchisees.
Dryer Vent Wizard is committed to running a franchise system with integrity. No matter how large we grow, we remain laser-focused on franchisee profitability, and we constantly search for ways to boost our partners’ bottom lines. If you’re wondering whether a particular franchisor is invested in strong unit-level performance, here are a few ways to tell:
1. Call Existing Franchisees
If a prospective franchisor won’t put you in touch with its franchisees, that’s a red flag. A brand with integrity should be happy to let you talk to its owners and discuss the pros and cons of the brand and the business model.
As part of your due diligence, call a few owners and ask about their experience with the brand. Ask them what they would change, what they appreciate and what advice they have. That way, you get information on the franchisee experience straight from the source.
2. Look at the Support System
A franchisor that cares about its franchise partners’ success will invest in a robust training and support system. To asses for a strong support system, look at three things: the discovery process, the onboarding process and ongoing support.
- Discovery: It’s important for franchise brands to be authentic and engaged during franchisees’ discovery process. An updated franchising website and accessible information on financials and operations are necessities for a discovery process. Discovery Day events are another helpful way for franchisors to meet and field questions from potential franchisees.
- Onboarding: The onboarding process should give new franchisees everything they need to launch their businesses successfully. A comprehensive training program should include classroom and field training, so that franchisees feel totally comfortable when they start serving customers. A supportive franchisee network is hugely valuable during a new owner’s first months in business, since he or she can reach out to other owners for help or advice.
- Ongoing Support: A healthy franchise system is always improving. Franchisors should offer ongoing support in whatever form makes sense for your business: continued education, scheduling help, marketing support or new technology.
If you’re still not sure whether a franchisor prioritizes its partners’ success, just ask. A franchise brand with integrity will be able to talk about specific initiatives aimed at franchisee profitability. Here are some questions to get you started:
- What changes have you made to help make franchisees more profitable?
- How do you capitalize on industry trends to benefit franchisees?
- Are you intelligently integrating technology into your business model?
- What is this brand’s culture like?
- How do you go above and beyond to support franchisees?