Tension is an inherent part of franchising. Franchisors want to maintain standards and preserve the brand while franchisees want autonomy and the freedom to run the business their way.
But as anyone involved with franchising knows, the system only works when both sides cooperate––and managing those relationships can be difficult.
While some use coercion, threats, and sanctions to keep franchisees in line with the company playbook, this inevitably leads to a culture of resentment––a problem that can end up derailing the business from the inside when owners reach their breaking point.
Instead, research suggests building environments based on trust––while harder to generate and maintain––make it far easier to get buy-in from owners when you need it. In other words, trust is better than force when it comes to managing relationships with your franchisees.
So, how do you actually start building that trust?
We’ve gathered recent research into the topic and summarized the biggest takeaways below.
1. Deliver everything expected of you
Researchers call it “role performance,” but in practice, it’s really just common sense: Give your franchisees what they need from you.
When someone buys a franchise, they depend on their franchisor to give them assistance they wouldn’t otherwise have if they started a business on their own. Training, operational assistance, and marketing support are the three most important.
Research has found franchisors’ ability to provide these resources has a big impact on their trust and confidence especially during onboarding and the first few months of a new location.
2. Be sensitive to cultural differences
Franchisees know when they’re being treated like assets and when they’re treated like people. The truth is, people are different, and ignoring these differences only sends the message that you don’t really see them as individuals, just a “network.”
Researchers have found that franchisors who are sensitive to the cultural differences that make owners distinct from one another go a long way in demonstrating goodwill and good intentions to franchisees––two key ingredients for a genuinely trusting relationship.
So, how do you demonstrate cultural sensitivity as a franchisor? Here are the two most powerful ways to do it:
1. Commit corporate resources to local markets
In other words, don’t hoard your profits and leave franchisees high and dry. Listen to what they need and make smart investments in the tools and services that will help them grow. Without your help, they’ll be hesitant to make those investments on their own.
2. Adapt products and practices locally
This makes equally good business sense as it does good “people” sense.
Different markets want different things, and as such, your business should adapt to those local needs.
Showing your franchisees you understand their local needs and adjusting your offers accordingly goes a long way in not only strengthening your relationship, but strengthening your business too.
3. Be a mediator
Actions may speak louder than words, but that doesn’t mean communication doesn’t matter when building trust with your owners. In fact, it matters quite a lot.
Multiple studies on franchises have found that the way franchisees and franchisors talk to each other relates directly to the trust they invest in one another.
Specifically, research shows that franchisees communicate their intentions when discussing their competencies, experience and expertise with one another and the franchisor. Listening, identifying and responding to these implicit intentions shows owners you’re more aware of what they need than they thought you were.
In addition to listening, communication mediates both your delivery of expectations and cultural sensitivities as described above.
How franchise marketing solutions help franchisors give their networks what they need
Today, franchisors are getting help on all of these points with the help of technology.
Whether it’s ordering customized local marketing pieces, sending campaign materials from the corporate office, or designing in-store signage to fit their locations, customized marketing portals are helping franchises streamline the marketing supply chain for companies large and small.
Want to see how a customized marketing portal can make a difference for your company? Click here to schedule a demo today.
Want to learn how we're helping brands right now? Click here to download a case study with Toppers Pizza.
