How have you cultivated a productive relationship with your franchisor? Any tips for effective communication and negotiation?

Welcome to the fifth issue of Multi-Unit Restaurant Franchisee—Paths to Success. Each newsletter features a single question, with responses from different multi-unit restaurant franchisees speaking directly from their experience. It is emailed to subscribers every 2nd & 4th Monday.

A second section, “Franchisee Bytes,” features responses to a more personal question from a different group of multi-unit operators (favorite book, who they’d like to have lunch with, best advice, what do people not know about them, last vacation, etc.).

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ROB BRANCA

Company: President, Branded Management Group and Branded Realty Group

Brands: Dunkin (200+), RimTyme, Interstate Battery

Branca is the elected leader in the Dunkin’ Brand Advisory Council, Chair of Northeast US Region, Board member of both the IFA and the CFA, Chair of Inspire Brands’ Government Affairs Committee, IFA Franchisee of the Year, and past chair of the Multi-Unit Franchising Conference.

I’d say that both parties need to have an open and honest dialogue with no hidden agendas or planned surprises. The franchisee side may depend on how the system is structured. Is there an advisory council? An independent association? Both? Neither? Having written rules in place that everyone knows is important, so that when there is disagreement there is an agreed-upon structure to get to a resolution.

ANN VANOVER

Brand: 3 Penn Station East Coast Subs (Ashland and Morehead, Kentucky and Huntington, West Virginia)

Years in franchising: 22

I have found that if franchisees follow the system that is in place, it generally leads to open communication and a good working relationship with the franchisor. I’ve enjoyed an outstanding relationship with our corporate team. If I need something, I can call anyone in the system, including the president, at any time. Most franchises provide you with all the training and resources you need to be successful. If you follow along, it often leads to a productive relationship for both sides.

I’ve heard of other franchisees who push back against the system their franchisor has in place, and that definitely can harm the relationship. I’ve found it counterintuitive that someone would buy into a proven system and then want to make changes to it. When an owner has a consistent string of minor complaints, the franchisor may not be as willing to help that person when there actually is a major problem. I have always treated my franchisor with courtesy and respect. I look at them as a partner who has a vested interest in my success.

DAVID BLACKBURN

Company: Southern Rock Restaurants

Brands: 155 McAlister’s Deli in 13 states

Years in franchising: 12

Blackburn was named the 2022 Single-Brand Leadership MVP (Most Valuable Performer) for achieving brand leadership with one brand. He is McAlister’s largest franchisee, was GoTo’s (formerly Focus Brands’) 2023 Developer of the Year, and has signed development deals for 69 more McAlister’s.

Before buying our first McAlister’s 12 years ago, I’d never worked in a franchise relationship. I’d been in private and publicly held restaurant groups before, so this was a new experience for me. The culture of the brand seemed to be very collaborative and they had a strong franchise advisory council, which I joined right away.

In my second year with McAlister’s, Focus took over the brand. Not a lot changed, but they began to develop a very strong ideology to build first-class tools around digital support and rewards programs. In February 2020, the brand launched a new digital platform because the old one was failing. When Covid hit the country in March, the demand for online services doubled; the old platform would have failed. Strategically, they did a fantastic job.

I like to characterize our relationship as siblings. They might have an opinion on how to move forward, and I might have a different one. We can debate pretty strongly, but at the end of the day we leave the room aligned. They have big hearts and try to make everyone successful.

So get involved in your brand. You have to want to be involved and make your contributions—and the other side has to be willing to listen. To do this, you must create strong relationships and trust with the franchisor’s reps who support the various functions for your restaurants.

Never do anything that burns a bridge or shows disdain for your franchisor. Everyone is trying really hard. I have been brutally honest with people, and they have been the same with me. You can take a strong alternative view of an issue, but make sure that when you come out that you remain collaborative and productive. Don’t overstep the boundaries that would make your brand less productive.

BOBBY & CINDY LANCE

Company: All American Restaurants dba A&W All American Food;  Lance Family Restaurants dba Shoney’s Kitchen + Bar. Cindy Lance is president, Bobby Lance is CFO at both.

Brands: A&W Restaurants (1), Shoney’s (1)

Years in franchising: 44 as an A&W All American Food franchisee; 5 as a Shoney’s Kitchen + Bar franchisee

Bobby Lance was a panelist at the 2023 Multi-Unit Franchising Conference in a session titled “How Franchise Associations Help Protect Your Investment.”

1. If you have a franchise association, use it! Get involved with the association. Get on the board if possible. Don’t depend on the association to do all the work without your input.

2. With or without a franchise association:

• Communication is KEY.
• Be professional and courteous in all communication.
• Make sure you listen closely to your franchisor’s advice with an open mind.
• Always be positive in all your communication.
• If you have a problem, don’t just complain. Have a list of possible solutions before you contact your franchise association or franchisor.
• Do your homework. Also talk with other franchisees.

3. Always pray about your situation and ask God for “Godly Wisdom” before you do anything!!

4. Build long-lasting relationships!

FRANCHISEE BYTES

Hardest lesson learned?

All your locations must succeed individually for your company to grow and have great success. You won’t bat 1.000, but you must figure out how to get close.

—Raj Patel, President, The Hari Group (88 Dunkin’, 6 Dave’s Hot Chicken, 5 McAlister’s Deli). Patel is the 2023 Multi-Brand Leadership MVP (Most Valuable Performer), awarded for achieving brand leadership with multiple brands.

People are the heart of any organization. You must treat them with respect and provide them with the tools and opportunities for growth.

—Wyatt Batchelor, Managing Partner, MBN Brands, 65 Jimmy John’s, 58 Burger King, 22 KFC. Batchelor is the 2023 Veteran Entrepreneurship MVP (Most Valuable Performer), awarded for outstanding performance, leadership, and innovation by a military veteran.

Your main thing is to keep your main thing the main thing. I learned the importance of focus early in my entrepreneurial journey when I was so focused on the seasonal weakness of my business and invested in a co-brand to combat it. It failed quickly, and it taught me to refine my strategy of focusing on strengths. Instead of trying to drive revenue in a college town in the winter when all the students aren’t even in town, focus on how to maximize the season they are there.

—Antonio McBroom, CEO, Primo Partners (15 Ben & Jerry’s). McBroom is the 2023 Diversity, Equity, and Inclusion MVP (Most Valuable Performer), awarded for demonstrating exceptional commitment to the promotion of diversity, equity, and inclusion in their organization.

No matter how hard you work, failure can happen. I opened a Rosati’s Pizza and Sports Pub franchise 3 days before the world shut down for Covid in March 2020. That obviously was a very difficult time, and the work put in to that restaurant was immense. After 2 years we closed. I had to realize the reasons for the failure were many—and several of them were because of choices I made or didn’t make. It seems a lot of the hardest lessons are also the most expensive!

—Rachel Wallace, CEO, CHF (Cup Half Full) Investments, SRW Management (25 Subway, 3 Scooter’s Coffee (11 total signed), 1 Best Western Plus).

Don’t grow too much too fast. In this business, you’re only as strong as your weakest operators. If you spread yourself too thin and don’t have strong operators in the store, you own a subpar store. The strain of trying to manage a subpar store can steal your attention from locations that matter most, and, overall, can lead to a negative spiral.

—Neil Hershman, CEO, 7 16 Handles, 3 Dippin’ Dots & Doc Popcorn, 2 Captain Cookie

Allowing the wrong people into my life and/or business.

—Sam Askar, Askar Brands (75 Dunkin’, 42 Church’s Texas Chicken, 1 Papa Romano’s, 1 Blackjack Pizza). Askar Brands is also the franchisor of Papa Romano’s, Blackjack Pizza, Papa’s Pizza To Go, and Breadeaux Pizza