Greg Nathan's Franchise Relations Tip #8
The Power of Hope in Franchising
If you are a franchisor wanting to grow your network, pay attention to this tip.
Our team of psychologists at the Franchise Relationships Institute has been collecting data on franchisee satisfaction for 15 years. And we have now crunched the numbers on over 6000 franchisees to see what best predicts franchisee validation. (This is the extent to which a franchisee will recommend the business to others).
If you think it is how much money a franchisee is making, you”d be wrong. Money is important, but it is not the most important factor.
The most significant predictor of franchisee validation
The most significant predictor of franchisee validation, with a whopping correlation coefficient of 0.67, (anything over 0.5 is big), turns out to be how optimistic the franchisee feels about the future of your franchise network and their business. Optimism breeds hope and without hope it”s difficult to get excited about anything.
Napoleon said “Leaders are dealers in hope”. The job of the franchisor is to provide people with a sense of hope – a future they can look forward to.
Here are ten things you can do to influence a franchisee to feel more optimistic:
1. Open your discussions by asking what has gone well today and keep conversations solution focused.
2. Work with them on ways to boost their profitability and remind them that this is of fundamental concern to you.
3. Help them to set goals that keep them focused on the things they can do something about, instead of worrying about things they can”t control.
4. Communicate a clear, inspiring vision around what the company is aiming to achieve and what this means to them.
5. Remind them what the group has achieved despite difficult market conditions.
6. Encourage them to persevere in the face of set backs, disappointment and frustration.
7. Recognize progress and accomplishments. Remind them of what they are doing well, including the small things.
8. Create opportunities for them to be in a positive environment, for instance visits to a support office where they are welcomed and meetings that are constructive.
9. Be reliable in your commitments so they know they can count on you.
10. Finally, and most importantly be optimistic and hopeful in your own demeanor – feelings are contagious.
More research into what drives franchisee success
If you want to know the other predictors of franchisee validation come along to my next Profitable Partnerships Boot Camp on May 25 and 26, 2010. I”ll share these along with some other fascinating research into what drives success in a franchise network.
You”ll also learn how to manage franchisees through the inevitable ups and downs of their relationship with you. These are essential skills for every franchisor team, especially in tough times.
Why not do your own research
on the Profitable Partnerships Boot Camp by clicking below. You can see a short video of what people said about last year”s program. I can promise you an optimistic two days of practical learning and useful networking.
Register for Profitable Partnerships Boot Camp! May 25 & 26 in Denver. Hope you can join us!
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.