How To Effectively Manage Difficult Franchisees – The Five Golden Rules
Many of us who work in the multi-unit franchise business have experienced franchisees who exhibit unproductive behaviors that include being overly demanding, blaming others for their failures and at times, being downright mean and nasty. These folks seemed nice enough at Discovery Day and even celebrated with us when they signed their franchise agreement. Over time, things changed, but why? What went wrong and how can a relationship that is beginning to sour get back on track?
In my experience, the best way for a franchisor to effectively manage difficult franchisee behavior comes down to these Five Golden Rules:
1. Always Repay Evil With Kindness
When a franchisee fires off a nasty email or becomes hostile on the phone, keep cool and never react negatively. Listen, ask good questions, and try to understand the reasons behind the unproductive behavior. Do your best to resolve the situation, if possible, and follow up by when you say that you will.
2. Manage Expectations Up Front
Sometimes franchisees will build their expectations upon what they wish and hope for, not what exists in reality. As an example, an emerging restaurant concept may not have the same marketing resources as do larger chains. It’s your job to clearly communicate up front what resources do exist and what resources do not exist so there are fewer surprises down the road.
3. No Means No
You’ve heard the franchisee’s request or complaint. What is being asked for may not be available or, it may not be a current system priority. “But we want TV commercials just like xx competitor has,” they may say. If you know for sure that the request cannot be acted upon or honored in the near term, just say no. No means no and it can also mean no for right now. Be direct, be firm and don’t be afraid to say no.
4. Keep Your Promises
There are scores of franchisees and just one of you. One way to avoid being eaten alive on the job is to always keep your promises. If you agree to take an action by a certain date, take it and report back to the franchisee to close the loop. Never make a promise that you are not in a position to keep. If you hit an unforeseen snag that is beyond your control and one that will prevent you from keeping your word, immediately communicate the change to the franchisee.
5. Strive to be respected first, and liked second
As humans, we want other humans to like us and the franchisees we serve are no exception. Keep your franchisor/franchisee relationships businesslike and always remember that the franchisee is not your friend. Never complain about difficult franchisee behavior to others in your system and make sure you operate in a manner that is always 100% above board and beyond reproach.
For the most part, nobody, including your franchisees, starts out wanting to be “difficult.”
Follow these Five Golden Rules to effectively manage difficult franchisee behavior and watch your relationships improve.
Lynn Hoban is the principal and founder of Lynn Hoban Marketing. She helps leaders of emerging restaurant and retail concepts scale their marketing programs so they can grow. If you would like to improve franchisee communication and get better business results for your organization, contact lynn@lynnhobanmarketing.com to find out more.