How Franchisors Can Implement New Systems Without Disrupting Franchisees

The franchisor-franchisee relationship rests on mutual trust. This trust is, moreover, tested when the franchisor tries to implement a new change in the business pattern. It may be a new technological innovation or a state-of-the-art product. But more often than not, the franchisor runs into a wall, as the franchisees are very skeptical about any change and try to resist as much as they can. Thus, the situation that arises is not healthy for anyone. So, if you are a franchisor and thinking of introducing some modifications in the running of the business, here are some pointers on how to avoid this unpleasant situation.

• Do a detailed study of the present scenario: Before introducing a new technology or product, carry out detailed surveys of what is happening in all your franchised units. Are most of them losing out because they have outdated transaction systems? Then it’s quite possible that they won’t mind upgrading to new facilities that will save them considerable amount of time and money. Also, check the cost of implementing the new changes. If it costs too much and does not bring in immediate results, then the franchisees may be reluctant to go for them.

• Take your Franchisees into confidence: The franchisees have to be taken into consideration when you decide to implement a change. Why? Because, they are a part of the family and must have some say in the running of the business. After all, they will be paying for the new innovations and running them as well. If you take the stand of a patriarchal father-figure, then you will end up with a bunch of disgruntled franchisees. They may even take you to the court. So keep them with you, show them the profitability and they will surely be on the same boat. Annual meetings where most franchisees are present are a good place to introduce new technologies and products. Here, you are required to convince the franchisees regarding the usefulness of the new technology/product.

• Try to sponsor a part of the cost: The reason why franchisees shoo away from changes is that these changes cost some amount of money. Hence, their attitude remain “if it is not broken, it is working fine”. In such cases, if you subsidize a portion of the cost, then the franchisees may not be that reluctant to implement the changes.

• Don’t force the new innovations on the franchisees: One of the major complaints that franchisees have against their franchisors is that they have been forced to implement a costly change. Many of them are small-time businessmen with single stores. Hence, never assume that your franchisees will jump to an upgrade, just because you have said so. Always talk to them first and never make a unilateral decision. Moreover, try to keep it as simple as possible and check whether the employee-training programs are hampering the productivity of the franchisees.

• Find a guinea pig: Franchisees, especially single-store owners are notoriously out-of-sync with the latest technological innovations or products. They are more focused on the business part. Hence, find one or two franchisees that are willing to implement the changes and introduce the innovations in their stores on a trial method. If the franchisees learn that one of them is using something new and profiting from it, they will have no problem in implementing that change in their stores as well. It has been observed that a fellow franchisee sometimes becomes a better spokesperson for the new technology/product than the franchisor himself!

If you’re having difficulty communicating with your franchisees, or if you just need help in developing a better relationship with them, brandEXPANSION’s franchise development team can help you navigate the choppy waters and put systems in place to ensure smooth sailing. Contact us for more information.

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