Multi-unit franchising has gained popularity among entrepreneurs. While it can be a profitable and fulfilling venture, finding long-term sustainable success as a multi-unit or a multi-brand franchisee requires strategic thinking, strong business acumen, and a trusted team of advisors to overcome a diversity of ever-changing political, economic, franchisor, people, and leadership challenges.
Moving from Operator to Leader: Delegating Responsibilities
One major challenge franchisees face is the ability to build leadership bench strength and delegate responsibilities. Many franchisees are used to being hands-on and involved in all aspects of their business, but to grow and expand, it’s necessary to delegate tasks to others. Overcoming this hurdle requires clearly defining, documenting, and delegating the management of policies, procedures, and processes. By doing so, franchisees can free up their time to focus on higher-level initiatives essential for growth.
Developing a Strong Leadership Plan
Another critical factor in franchise growth is developing a robust leadership plan for future leaders. As Aicha Bascaro, President of the American Franchise Academy, says, “A lot of the time, franchisees are held back from growing because they don’t have the leaders to take over the unit.” Franchisees must identify potential leaders and provide them with the training and support they need to succeed. By doing so, franchisees can ensure that their businesses continue to thrive long after they’ve moved on.
Managing Resources
Of course, time, people, and money are three essential resources for growth, and franchisees must carefully manage all three. This means prioritizing strategic thinking and planning with your leadership team and trusted advisors. Strategic planning aligns vision and prioritized initiatives ensuring your resources are deployed in alignment with the organization’s vision. Additionally, franchisees need to ask the right people for advice. This includes seeking guidance from other franchisees and industry experts.
Empowering Younger Leaders
Another vital strategy for franchise growth is to put younger leaders in positions to think globally. This means empowering them to take risks, try new things, and expand their horizons beyond the local market. By doing so, franchisees can tap into new sources of revenue and build a more resilient business. A way to engage the next generation is through developing a Management Advisory Board. In this setting, you or key leaders can ask the members of the MAB to problem-solve and provide ideas around strategic initiatives and/or driving performance in key areas of the business.
Focusing on a Larger Purpose
Jeff Bannon, succession planner with The Rawls Group, says franchisees, “need to be in it for more than just the reason that there’s an opportunity to make money for the owner.” Identifying a mission or vision that goes beyond the bottom line and connects with customers and employees on a deeper level is critical. By doing so, franchisees can build a more meaningful and impactful business that resonates with their target audience.
While franchise growth is not without its challenges, there are several strategies that franchisees can use to overcome these obstacles. By delegating responsibilities, developing a robust leadership plan, managing time, people, and money effectively, seeking advice, empowering younger leaders, and focusing on a larger purpose, franchisees can build a thriving business that provides long-term success and fulfillment.
For more information on this topic, check out the video Challenges and Strategies for Franchise Growth
Kendall Rawls knows and understands the challenges that impact the success of a family-owned business. Her unique perspective comes not only from their educational background; but, more importantly, from her experience as a second-generation family member employee of The Rawls Group – Business Succession Planners. For more information, visit seekingsuccession.com or email info@rawlsgroup.com.