Change is a normal part of operating any company whether the company is small or large, franchised or not. Change can come in many forms, whether procedural, which is implemented per the operations manual or marketing changes such as introducing an advertising program or new product. Change can be of a major category such as a franchisor acquisition, a merger or a sale. If the franchisor is publicly owned, this type of information must be disclosed in compliance with SEC regulations.
Major changes can have a significant impact on franchisees and may demand special handling. In other cases, the change may not be that significant; however, some franchisees may feel that the change is only the beginning of more to come.
Some changes being considered by the franchisor should be communicated to the franchisee community in order to measure the impact of the change upon franchisee relations and any other potential impact on the franchisee.
Examples of these changes would include:
How to prepare for change:
Franchisors often create special committees or use their franchise association to deal with introducing specific changes. The franchisor, must clearly state the purpose of the special committee. Some franchisors use committees to manage issues that can result from newly implemented changes.
Change is an important aspect of all relationships and especially in the world of franchising. It is important that the franchisor and franchisees conduct business within a climate of change that is positive and considers the needs and objectives of both parties.
When it comes to franchising, Murphy’s Law comes into play more often than desired. In many cases, a new franchise takes off slower than anticipated.
The emphasis on franchise system growth is as old as franchising, having been accepted as the indicator of a quality franchise.
After owning 4 successful businesses, in different business sectors, there are two common attributes my good hires have shared; Curiosity and Tenacity.
In the franchise industry, franchisors can view comparisons and relationships between consumer satisfaction for the products or services a franchise offers.
These traits lead to low franchisee turnover, an attractive investment opportunity, outlet growth and brand recognition and consumer satisfaction.
Owning a business is hard. Each venture has its differences – different customers, different go-to-market strategies, different business partners.