In recent years, several franchise networks, both emerging and well-established, have been facing a new challenge gaining momentum: the growing dissatisfaction of franchisees with their franchisor and the drop in their commitment to the brand. Why is this? Globalization, the influx of choices, the social megatrends supported by the internet, the technological revolution, and the search for transparency influence franchisees’ expectations towards their franchisor.
Today, considering the franchisee as an executor is a strategic mistake that generates turbulence and, above all, slows down growth. No, franchisees are no longer executers; they want to be part of the solution, have a say, develop as a person, and as CEO of their own company.
Where is the problem?
Unfortunately, many franchisors run their franchise network by brandishing the franchise agreement as a management pillar. The all too famous “my way or the highway” system is favored. This creates an infantilizing relationship focused on authority.
Let’s be clear, the world has changed forever; there is no possibility of backtracking. Interactions are more complex than before. The qualities sought in today’s leaders are focused on the human element, co-creativity, teamwork, the ability to lead people from various backgrounds.
Ultimately, franchisors who lead like dinosaurs are doomed to extinction.
The solution: positive leadership
Positive leadership focuses on what elevates individuals and organizations. It is an affirmative and extremely proactive leadership that focuses on the strengths and abilities of each individual. It ensures that deviations are transformed into positive results.
A positive leader is not a mascot, cheering up everyone all the time, neither naive nor willful blind to problems. He’s not looking to “be nice,” charismatic, or act as a “servant leader.”
Positive leadership is based on the deep belief that humans want to do well. Is that not the foundation of the franchisor-franchisee partnership?
For a franchisor, positive leadership is based on four pillars:
1. Positive climate
Positive leaders voluntarily choose to amplify the positive elements of organizational life and thus counteract the tendency towards the negative (the human being is programmed to see the negative first). They promote compassion, forgiveness, and gratitude.
Positive leaders create a sense of security to foster the emergence of a favorable climate. Of course, the whole thing is not improvised. It necessarily implies that the appropriate strategies are put in place to create this environment.
2. Positive relationships
Positive relationships within a franchise network are based on the certainty that all members can enrich, vitalize and learn from each other. Basically, the profits will be multiplied if the franchisor removes the toxicity in the relationships with their franchisees.
The main ingredients to support positive relationships are celebrations, recognition, positive energy activities, focus on strengths, and encouragement (private and public).
3. Positive communication
Easier said than done. Positive communication is based on creating a positive language common to all members of the franchisor’s team that will resonate with franchisees. Minimizing criticism/backbiting, giving abundant positive feedback, and demonstrating support help to develop positive communications. The key lies in authentic and sincere communication without a hidden agenda or red herrings.
The ingredients: permanent open feedback via consultation mechanisms such as round tables, advisory committees, self-directed performance audits, and platforms for sharing best practices.
4. Positive “meaning”
Franchisees are not in it just for the money. The quest for meaning is a universal need. When franchisees feel that they are pursuing a deep meaning through the brand, their commitment is fostered.
This positive sense generates profound effects and changes such as increased responsibility, satisfaction, joy at work, and a sense of achievement. This positive “meaning” emerges from the company’s mission, one that allows everyone to understand the real “why” they invested and believed in you and agreed to become involved members of your team, as well as proud ambassadors for your brand.
Positive meaning is created when:
• Work has a significant impact on the well-being of human beings
• Work is in line with personal values
• Work has a lasting impact and multiple effects
• Work builds strong relationships between team members and the community.
The franchisor should be the guide and the guardian of the mission. By working with the franchisees, he must help them appropriate it and develop the implementation strategies that will make it live in each franchise.
100 per cent responsible
Success as a franchisor is, above all, based on the success of their franchisees. We live in a V.U.C.A. world (Volatile, Uncertain, Complex and Ambiguous), and positive leadership is the element that creates the link that connects all the actors in the network so that they are motivated to contribute. Each leader of a franchisor’s team is 100 per cent responsible for creating and prioritizing this type of leadership.
For the CEO of a franchisor, it is their responsibility to reinvent leadership within the network and create sustainable value for the brand through positive leadership. The real reward is a high ROI without capital investment and to auto-generate organic revenue growth. Not to mention personal satisfaction in building a real community of business partners. However, you must commit yourself with passion by choosing simple strategies and means.
In conclusion, let’s remember a line from the movie Captain America: The First Avenger, that expresses the kind of commitment that franchisor CEOs need with their franchisees to develop positive leadership: “I’m with you till the end of the line.”
The author
Stephane Breault, MBA, is CEO of Imagine Franchise and works with franchise system CEOs to maximize the impact of their leadership to enable them to realize their organization’s full potential. He can be reached at sbreault@imaginefranchise.com
