Greg Nathan's Franchise Relations Tip #12

The 4 Franchisee Motivators

The new VP of Operations walked confidently onto the stage. He had spent weeks developing a new finance tool that would enable franchisees to benchmark themselves against their peers and was convinced they would lap it up.

But there was a problem. He was deluded in how well he understood his franchisees.
“As we all know”, he stated with a smirk, “No one runs a business because they enjoy it!”
The room was silent. I was in the audience observing franchisee reactions to this opening statement.

He continued. “The only reason we are all here is to make money, right?”

The stony faced, lack of response seemed to catch him by surprise. I sensed mild bewilderment from the audience and I was pretty sure I knew why.

You see, his statement was not entirely true. And in saying it with such arrogance he had damaged his credibility.

What really drives franchisees

It is a well researched fact that self employed adults are significantly more satisfied with their work than corporate employees, despite facing higher levels of financial stress and longer hours. Don”t be fooled into thinking this is because they are making more money.  There is no evidence for this.

Of course franchisees want to make money, but most are also strongly motivated by the following four psychological factors. If you want to get buy-in to new initiatives, take note.

A desire for independence and flexibility. Many say they bought their business to escape the politics, rigidity and frustration of working for an over controlling boss.

To achieve a personal challenge. They are highly motivated by results directly linked to their own creativity and hard work.

To make a difference. Many franchisees treat their staff as extended members of their own families and talk passionately about the satisfaction they feel in helping customers and making a contribution to their local communities.

To achieve the respect of friends, family and peers. Never underestimate the importance of status and pride. Treat a franchisee with disrespect and you will pay the price.

How to earn people”s trust

So how did the franchisees take to this new initiative? It bombed. Not one franchisee signed up! I am sure a major reason was their franchisor”s lack of understanding on what motivated them.

If you want people to willingly share their financial details, you have to earn their trust. And, we are more likely to trust people who understand us.

If you are interested in learning more about what makes franchisees tick, why not come along to our next Profitable Partnerships Boot Camp. I”ll be sharing some fascinating research on this topic along with tips on how to get franchisee buy-in to your new initiatives.

Register for Profitable Partnerships Boot Camp! May 25 & 26 in Denver. Hope you can join us!

Regards till next time.

Greg Nathan
Managing Director
Franchise Relationships Institute

CFE LogoAttendees will earn 300 Education Credits towards completion

of the
Certified Franchise Executive (CFE) accreditation or CFE re-certification
by attending this program.

Greg Nathan, Managing Director of Franchise Relationships Institute


Often described as the international thought-leader and expert on franchise relationships, no one understands the unique challenges and rewards inherent in the franchisee-franchisor relationship like Greg and his team of psychologists at Franchise Relationships Institute. They have spent the past 20 years researching the science of successful franchise relations.


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