Franchisor Tips: 10 Traits That Make a Good Franchisor

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The best franchisee

As the franchisor, you have a significant influence over whether an entrepreneur chooses to invest in your business. The way you treat your existing franchisees and the culture you create in your franchise network will play a huge part in any potential investors’ decision-making process. So, what makes a good franchisor? 

You might think a successful franchisor is one with the ability to drive high profit potential for their franchisees. But actually, most investors won’t join a franchise unless it has a supportive franchisor, who helps them nurture business growth on a day-to-day basis. 

So, what do franchisees need from franchisors? There are several key attributes of a good franchisor, relating to all aspects of business ownership. Keep reading to find out which traits you should be channeling. 

What makes a good franchisor? 

1. Commitment to brand growth

We’ll get onto the other important traits of a good franchisor, but we have to mention this major one first. Of course, all successful franchisors champion business growth - otherwise their franchise would ultimately fail. 

Researching the latest trends, carrying out market research and investing in the brand are important jobs for any strong franchisor. 

2. The ability to keep on top of many things at once

All business owners have to wear a lot of hats, but franchisors in particular have many different responsibilities to manage. You’ll need to make sure your business not only stays attractive to franchisees, suppliers and customers, but also keeps turning a profit and grows as time goes on.

Good franchisors regularly update their operations manuals, support schemes and other key elements of the franchise package. And if you find big events like the Covid-19 pandemic cause you to re-think your mission, you’ll need to effectively navigate any changes to your business’s values too. 

3. Enthusiasm for digital transformation

New tech solutions emerge every day, many of which can be helpful for franchisors. As a business owner, it’s crucial you don’t shy away from technological advances. Keep up with your competitors or even get ahead of the curve by prioritising digital transformation

If you’re to be a successful franchisor, you’ll also need to know how to keep your franchise safe from a cyber attack and reduce your franchisees’ tech stress

4. Passion for sustainability

These days, being environmentally aware isn’t optional for franchisors. Customers increasingly turn away from companies involved in harmful activities or using unsustainable suppliers/products. From switching to a renewable energy provider to selling vegan products, there are countless ways to create a more sustainable business

5. Communication skills

Never underestimate the power of effective two-way communication. Most good franchisors are on hand to guide and reassure any franchisees who need help. Remember, you have years of experience building your brand; your franchisees may be new to business ownership altogether.

You should also know how often to check in with franchisees - leave it too long and they may struggle, but micromanage them and they’ll become frustrated. Aim to nurture an open and honest franchisor-franchisee relationship so you can build trust between you and tackle challenges quickly before problems worsen. 

6. Dedication to visiting franchisees on a regular basis

It can be easy to rely on technology to communicate, but visiting your franchisees in person should give you the chance to have much more meaningful exchanges. 

While the odd email or video call can be useful for resolving issues quickly and efficiently, on-site visits demonstrate your commitment to supporting your investors. Visiting franchisees in person not only makes them feel valued, but also gives you the chance to make sure they’re upholding your standards properly. 

7. Ability to nurture skills and understanding 

All good franchisors offer training in some form. Usually, an initial coaching programme is vital when it comes to making sure all investors have the skills they need to launch a branch of your business. But you should also continue helping them boost their knowledge and understanding as time goes on. 

A well-trained franchisee is efficient and productive, and feels empowered to make decisions about their business without regularly asking questions. See our article on the importance of ongoing training for more information. 

8. Interest in supporting franchisees

As soon as you welcome franchisees into your business, you agree to nurture other people’s success, as well as your own. Your franchisees will rely on you to guide them as they set up their business and develop it over the years, so you must be dedicated to providing high-quality support

One way to help your investors is to monitor their performance. If you notice someone slipping below your ideal standards, you can deliver advice and guidance before things go downhill. 

9. Networking skills 

Networking is an important skill to have, not only for franchisors, but for business owners in general. It’ll give you the chance to boost awareness around your brand, make contacts and gain insights from other industry professionals. 

Make sure you understand the importance of networking, and how it can benefit your franchisees. Ideally, you should attend business events and conferences on a regular basis. 

10. Organisational skills for franchisee events

Organising franchisee events will give your investors the chance to discuss problems, share ideas and mingle in a fairly relaxed business environment. It’s also a great way to provide support and see people face to face if you have an extensive franchise network and find it difficult to visit franchisees regularly. 

Running your own business can be lonely and stressful, so franchisees usually appreciate an opportunity to come together and share insights.

Find more guidance on running a franchise

We’ve created a pack of ‘franchisor tips’ articles, to help people succeed in running their own franchise. Why not start with the top six mistakes to avoid when running a franchise network? 

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