How to Evaluate the Culture of a Franchise
It pays to be picky when it comes to the people you’ll be spending a lot of time with. That is why, if you are considering purchasing a franchise, it is critical to pay close attention to their culture.
Here are five factors to consider when evaluating the health of a franchise culture.
1. Franchisees and franchisor staff are pleased with their decision to join.
Inquire with the franchisor’s staff about what it’s like to work here. Pay close attention to their responses and body language. Do their eyes light up as they respond simply and unapologetically? Or do they appear perplexed as they consider what to say, qualifying their remarks with phrases like “it depends…” or “generally speaking…”
Ask to see franchisee responses to two important questions if the company conducts regular franchisee satisfaction surveys (which most franchise networks with healthy cultures do).
“Would you recommend this franchise based on your experience?”
“Would you buy this franchise again if you had a second chance?”
You’re hoping for a positive response from more than 70% of franchisees.
Inquire whether any franchisees have quit their jobs to purchase a franchise. This demonstrates their belief in the business model and culture.
2. Information and data are freely shared.
Inquire with franchisor staff if you can see data on the performance of existing franchisees. The franchisor will have access to accurate and up-to-date performance data on all franchisees, including detailed sales information, operating expenses, and profits, in a healthy franchise culture. And they will be delighted to speak with you about it.
Inquire with existing franchisees about the types of information they share among themselves, as well as how open people are to collaborating and sharing operational tips.
Finally, consider how open people have been in their interactions with you.
3. People are willing to give each other the benefit of the doubt.
Inquire with franchisor staff about how a recent initiative was implemented. Pay attention to how this was accomplished, paying special attention to the level of transparency in the decision-making process and the extent to which franchisees were involved.
Ask existing franchisees if they believe the franchisor team has their back and makes decisions in their best interests. People in a healthy franchise culture trust each other’s motives and assume they are acting honestly and rationally.
Consider how open and honest franchisor executives have been with you. Do your meetings leave you feeling clear or perplexed? Have they provided evidence to back up their claims, or are they relying on hearsay? Have they kept their promises, or are they always making excuses?
4. There is a high level of brand engagement and understanding.
Our culture reflects “how we do things around here,” but our brand represents our reputation. In other words, our brand is what we want people to think of us, while our culture is who we truly are!
There is alignment between the brand and the culture in a healthy franchise culture. What you see is exactly what you get. There is also a shared understanding of what the brand stands for throughout the organisation. This includes the franchisees’ employees who are most likely to provide the customer experience.
Request that people tell you about the brand. Consider how clear and consistent their responses are. How enthusiastic do they sound when discussing their products or services and how they are delivered? How ecstatic are they about the brand?
5. Everyone is focused on the end goal – creating satisfied customers.
Many franchisor executives become so enamoured with their brand, systems, and accomplishments that they lose sight of the most important person in the world: the customer. Some even mix up their franchisees and customers. There is only one customer, and that person is the one who chooses to shop with you.
In a healthy franchise culture, everyone – the CEO, the franchise sales manager, the cleaners, the franchisees, and the front-line staff – is reminded on a regular basis that the organisation exists to create and maintain happy customers. Every decision is made with the question in mind, “Is this something our customers will appreciate?”
So, ask them about their customers and pay attention to how well they understand why their customers will continue to shop with this brand and not elsewhere.
Remember…
When you join a franchise network, you are committing to a culture that will have a significant impact on your thinking, behaviour, and life satisfaction.
While we cannot choose our families, we can choose the groups to which we belong; therefore, choose wisely.
Greg Nathan CFE, Founder of the Franchise Relationships Institute (FRI), global leaders in franchising psychology, wrote this article. He is the bestselling author of several franchising books, including Profitable Partnerships, and a popular keynote speaker at franchise conferences around the world. Visit www.franchiserelationships.com for more information on Greg and FRI’s educational work.
