Lead with Your Purpose: Profitability begins with a clear, compelling "why"

One of the most surprising insights from our three years of research and the launch of the Franchise Customer Experience Certification is the impact of a brand’s culture in driving franchise success. Initially, we believed that our certification would focus on how effective a brand acts on consumer and franchisee feedback. However, our work with top franchise brands showed us that the companies most effective at driving franchisee profitability lead with their “why,” the core purpose of the brand and the vision for consumers and franchisees. 

The following are 12 examples of how brands set their cultures from the start and create the through line to the bottom line for franchisees.

Operationalizing culture

Studies show a strong link between high customer satisfaction and robust cultures. Each franchise’s culture must align with the overall brand culture to ensure brand integrity and significantly contribute to profitability.

For example, Fastsigns, a part of Propelled Brands, emphasizes its mission. Franchisees noted the mission’s consistency and how it has expanded to include the “Five Key Characteristics of a Successful Person,” championed by CEO Catherine Monson.

At Any Lab Test Now, the leadership team focuses on aligning franchisee candidates with the culture, emphasizing their purpose statement and core values on discovery day.

The Brand Way

Before diving into selling, marketing, or operations, a franchise company must define The Brand Way. This concept involves operationalizing the methods by which the team will consistently conduct business with consumers and franchisees based on the brand’s mission, purpose, and core values. It entails defining proven processes, training the team, and using tools and technology to ensure consistency.

QC Kinetix has developed a university platform with specialized processes for every position and mandatory training. The company deploys territory managers to visit each location at least twice a year for support and to ensure brand consistency. 

Massage Heights created a guest experience handbook that has become the heart of consumer service. It’s backed by robust testing for team member skills that are assessed by franchise business consultants.

My Salon Suite sets culture expectations and ensures a great brand experience based on core values by communicating processes for prospective tenants in its Reserve a Suite portal, including an online resource with virtual tours and live tour scheduling.

Consumer feedback

Once a brand has established its vision and culture, it’s time to serve consumers. The most effective way to serve customers is to ask for feedback, learn from it, and apply it. 

Homewatch CareGivers franchisees use multiple technology platforms for social listening, review monitoring, and conducting client satisfaction surveys. The company provides franchisees with access to online reviews from across the system.

Chicken Salad Chick breaks down its overall guest experience into specific elements and gathers consumer feedback to assess how those elements drive overall satisfaction and likelihood to return.

Franchisee feedback

If a franchisee feels disengaged, unsupported, or operationally challenged, it’s unlikely they’ll deliver a great consumer experience or recommend the franchise brand to others. Helping franchisees succeed from day one starts with effective business consulting, seeking and acting on feedback, and providing opportunities for franchisees to benchmark and support each other.

Christian Brothers Automotive’s home office sets annual department goals largely based on feedback from an annual franchisee satisfaction survey conducted by Franchise Business Review. It’s driven by Christian Brothers’ mission: “Love Your Neighbor as Yourself.”

Wild Birds Unlimited builds a culture of continuous improvement by requesting and acting on feedback, including annual surveys by Franchise Business Review, internal surveys, and seeking input before franchise advisory council meetings.

The Profit Path

It’s been said that the ultimate strength of a franchise brand is the unit economics. Research demonstrates how a great customer experience impacts revenue and profit growth, but a brand must show a franchisee how this occurs within their system. Providing franchisees with the data and practices that chart The Profit Path from customer experience builds credibility, adoption, and consistency with franchisees and their teams.

At PuroClean, franchisees are celebrated at a ceremony at their annual convention with awards based on growth but tied to consumer experience and engagement with the brand.

Batteries Plus has created a business intelligence suite with predictive customer experience modeling to link value outcomes, like revenue growth and loyalty, with customer experience metrics. 

NerdsToGo has established a standard chart of accounts in its financial software to create consistent profit and loss statements, enabling dedicated business strategy consultants to support franchisees in achieving their annual plans.

Closing thoughts

The journey to franchisee profitability begins with a clear and compelling “why.” By focusing on a robust mission or purpose statement, franchisors can cultivate a strong, cohesive culture that prioritizes both franchisee and consumer experiences. Embracing this approach and implementing the practices recognized in the Franchise Customer Experience Certification can create a thriving franchise network that delivers exceptional value, drives improved profitability and builds a legacy of commitment to purpose.

Jayson Pearl, the founder of the Franchise Customer Experience Institute and ServiceScore, works with leading brands to drive better results through improved consumer and franchisee experiences. Contact him at jayson@servicescore.net.