skip to content
blog home Start a Franchise Franchisors: Are Your Franchisees “Raving Fans”?

While franchisee failure may be inevitable for a select percentage of franchisees and, in may cases, may have nothing to do with the franchise system (i.e., a franchisee who refuses to roll up his or her sleeves and commit to hard work), one thing that this economic downturn has exposed is the fact that many franchisees (too many) are not raving fans of the franchise system(s) in which they operate.

In speaking with franchisors and franchisees over the past number of months, one critical issue that appears to be adding to this disconnect may be franchisor implemented policies designed to generate additional franchisor revenue through non-franchisee channels of distribution. When evaluating your franchise system and the potential for generating additional system revenues, one critical resource that is often overlooked is existing franchisees. Recently, after reading Ken Blanchard and Sheldon Bowles  insightful book, Raving Fans – A Revolutionary Approach to Customer Service, it became clear to me that too many franchisors are overlooking a critical asset and opportunity: revenue growth generated by existing franchisees who are converted to raving fans.

Again, while not all franchisees are right for every franchise system and while certain franchisees may never get it as a franchisor, I believe that you must develop the systems, procedures and policies that will turn your franchisee base into raving fans. Following the advice of Mr. Blanchard and Mr. Bowles, you should start by assessing and understanding:

(a)  What you expect from your franchisees;

(b)  What your franchisees want from you; and

(c)  How to deliver what your franchisees want plus an extra one percent.

Evaluating and understanding these factors/answering these questions, can only help to further refine and improve your franchise system. The incremental sales (in terms of franchise unit growth and gross revenue) that could be generated by franchisees that are raving fans could prove substantial and, in my opinion, represents a critical resource that many are overlooking. If you have not read Raving Fans, I strongly recommend it.

 

Related Articles:

By admin March 7, 2016

Franchising Guides

The Ultimate Guide to Franchising Your Business

New to franchising? Do you want to learn more about franchising your business, where to start, the steps, and how to know if you are doing it right?

Learn More

Is Your Business Franchisable and Should You Franchise?

Franchising may be the next big step for your business and represents an opportunity to grow your brand. So, how do you know if franchising is right for you? How do you know if your business is franchisable and, if it is, whether or not you should franchise your business? To answer these questions you must evaluate whether or not your business is franchisable and, if it is, whether or not your individual goals and your business goals align with franchising and establishing a franchise organization responsible for on-boarding, training, and supporting franchisees.

Learn More

Licensing Vs. Franchising

When considering expanding a business both franchising and licensing are possible options. Each option however comes with different rules and regulations. Prior to moving forward with franchising a business or licensing a business it is important to understand the differences and how each may have an affect on you.

Franchise Lawyer Charles N. Internicola wrote “Licensing versus Franchising” for the very purpose of allowing successful business owners to understand the difference between licensing a business and franchising a business.

Learn More

Guide to Selecting a Franchise Lawyer

If you have questions about franchise lawyers, what they do, how they can help, the cost, and how to select the right franchise lawyer for you, then this guide will help.

Franchise lawyers advise and represent individuals and businesses on legal issues that involve franchising a business, preparing an FDD, filing and renewing FDD registrations, buying a franchise, and litigation involving the franchisor and franchisee relationship. The role of a franchise lawyer varies depending on whether he or she represents the franchisor or the franchisee.

Learn More

Item 19 Financial Performance Representations

Check out our guide where we discuss how to plan and properly disclose Financial Performance Representations in your FDD.

Learn More

Franchise Sales Compliance Guide

Are you a franchisor or a part of a franchise sales team? Do you want to learn more about franchise sale compliance and ensure that your sales practices comply with franchise laws and are consistent with best practices? Then this guide is for you.

In this guide you’ll learn the fundamentals of franchise sales compliance including the franchise laws, regulations, and best practices that your team should have in place for every franchise sale.

Learn More
Close Overlay

Let’s Talk

With services to make your growth strategy simple, cost effective, and with a team excited to help you, let’s talk about how we can help grow your business.

Fill out the following form and we’ll contact you as soon as possible. To reach our team directly, give us a call at (800) 976-4904.