Navigating Franchise Reputation Management for Long-Lasting Success

When it comes to building a multi-unit franchise business, managing your reputation can be like navigating uncharted waters, as you have limited control over how people view the brand you represent. One of the biggest challenges faced by franchise owners is the lack of control over decisions made at the corporate level.

Brand recognition is undoubtedly a significant advantage for franchise owners. Being associated with a well-established brand like Subway or Domino’s can attract customers and provide a level of credibility that may be challenging to achieve as an independent business owner. However, this advantage can quickly turn into a disadvantage when something happens at the corporate level that is socially, economically, or morally unacceptable to the masses. For example, if the parent company of a popular franchise makes a controversial statement or engages in unethical business practices, it can lead to public backlash, directly impacting your business dreams. Even though you may not be involved in these corporate decisions, you are still affected by the negative perception that results. It is essential to address reputation management and proactively handle any possible, probable, or potential issues that may impact your business enterprise.

Here are three key strategies that multi-unit franchise owners can implement to mitigate the impact of negative incidents:

1. Engage in Scenario Planning

In the fast-paced and ever-evolving world of business, it is crucial for multi-unit franchisees to be proactive in managing their reputation. One way to do this is through scenario planning – envisioning and preparing for a reputation-damaging incident. By thinking ahead and playing out potential scenarios, franchisees can equip themselves with the necessary tools to overcome any challenges they may face.

The first step is to acknowledge that any brand, regardless of its size or industry, is susceptible to reputation damage. No company is immune to crises, whether they be caused by a product recall, a data breach, or a public relations disaster. By accepting this reality, multi-unit franchisees can adopt a proactive mindset and better prepare for the unforeseen.

Start by brainstorming potential scenarios that could harm your brand's reputation. Consider both internal and external factors that could lead to such incidents. For example, think about how a negative social media campaign could go viral or how an employee's unethical behavior could tarnish your brand's image. After identifying potential scenarios, analyze each one in detail. Consider the impact it could have on your brand, your customers, and your stakeholders. Think about the potential consequences and the level of damage it could cause. This will help you prioritize which scenarios to focus on and allocate resources accordingly.

By thinking through these solutions in advance, you will be better prepared to act quickly and effectively when a reputation-damaging incident occurs.

Download a Free Scenario Planning Template

2. Create a Crisis Communication Plan 

Develop a crisis communication plan that outlines the steps to be taken in the event of a reputation-damaging incident. This plan should include key messages, designated spokespersons, and strategies for addressing the concerns of customers, employees, and stakeholders. Being prepared and having a clear plan in place can help minimize the impact of negative incidents on your business.

Download a Free Crisis Communication Guide

3. Local Community Engagement

Actively engage with the local community and build strong relationships by promoting your organization's values and mission. Establish yourself as an employer of choice that prioritizes employee growth and development, while also making a positive impact on the community. It is important to showcase yourself as a local business owner who lives and interacts in the community. This can be done through active participation in events, sponsorships, and partnerships with local organizations. By demonstrating your dedication and involvement, you can create a positive perception of your business that is separate from any negative incidents at the corporate level. In times of need, your community will stand by you and offer support, rather than feeling alienated.

While being a multi-unit franchisee has its advantages, it also exposes you to potential reputation risks beyond your control. Diversifying your brand mix offers some protection against relying solely on one brand, but you still depend on corporate decisions. To safeguard your business and minimize the impact of negative incidents, it's crucial to understand the importance of reputation management and implement proactive strategies. By prioritizing the establishment of a positive local reputation and effectively communicating with customers and stakeholders, you can successfully navigate challenging situations and ensure the long-term success of your franchise business.

Kendall Rawls knows and understands the challenges that impact the success of a family-owned business.  Her unique perspective comes not only from their educational background; but, more importantly, from her experience as a second-generation family member employee of The Rawls Group - Business Succession Planners. For more information, visit seekingsuccession.com or email info@rawlsgroup.com.