Removing Hierarchy to Boost Franchisor-Franchisee Results

In today’s fast-paced business environment, franchisees are discovering that a collaborative, less hierarchical approach with franchisors leads to much better results. As the franchise industry evolves to better meet franchisees' needs, it’s important to consider how moving away from traditional hierarchies can spark innovation and drive success.

Here’s how franchisors can step away from conventional structures to build a more dynamic and effective partnership with their franchisees:

Stay connected and build trust

Maintaining open and regular communication with your franchisees is crucial for cultivating a strong and trusting relationship. Prioritize frequent check-ins, genuinely listen to their experiences, and address their concerns with empathy and attention. Try to establish clear, achievable goals, and frame feedback as a constructive tool for growth. This approach not only helps franchisees recognize their progress, but also keeps them accountable and motivated.

Make sure to ask yourself daily, “Have we connected with any franchisees today?” This question serves as a reminder of the importance of active engagement in their daily operations. Your consistent involvement demonstrates a genuine care for their success, fosters a deeper connection, and nurtures a community built on trust and mutual respect.

Give franchisees freedom and respect 

As a leader, your role primarily involves defining the “what” and “why” of your business strategy, but it’s essential to step back from the “how.” Trust your franchisees to handle the execution, but ensure they have the tools and resources needed to succeed. Providing comprehensive training and support is crucial so they feel empowered in their decision-making. Additionally, act as a sounding board for new tactics and ideas, offering guidance without micromanaging.

When franchisees feel genuinely trusted and supported, they’re more inclined to contribute their best ideas and innovate. Remember, they are the experts in delivering exceptional customer experiences in their local markets. Allow them the freedom to make decisions that best suit their unique environments, fostering a sense of ownership and respect that drives mutual success.

Align goals and celebrate achievements

Make it a priority to connect with your franchisees both individually and as a group to ensure everyone’s goals are in sync with the franchise’s overall vision. As a CEO, your role is to lead and inspire, helping your team shine in their roles. Remember, your words and actions are closely watched, so keeping your promises and making commitments you can truly fulfill is key. In fact, it’s better to make fewer promises, ensuring that they’re meaningful and achievable.

Try creating reward systems that tie franchisee success to the franchise’s overall achievements, fostering a sense of unity and shared purpose. Celebrate every win, milestone, and sale with genuine enthusiasm because their successes are a reflection of the entire franchise’s success. By setting clear goals and offering regular, positive feedback, you build a supportive and encouraging environment where everyone feels appreciated and motivated, strengthening the sense of teamwork and shared goals.

Encourage ideas and collaborate

One of the greatest strengths of a franchise system is the wide range of perspectives it brings. Embrace the fact that you don’t have to be the smartest person in the room. This diversity of thought is a real asset. By staying approachable and open, you create an environment where franchisees feel comfortable sharing their ideas and feedback, confident that their contributions are truly valued.

When conflicts or concerns arise, address them as a team, considering how decisions will affect their daily operations. Your role is to foster a warm and collaborative atmosphere where everyone’s voice is heard and appreciated. This approach not only helps solve problems effectively, but also builds a strong sense of teamwork and mutual respect within the franchise.

By embracing a more collaborative and flexible approach, franchisors can unlock the full potential of their partnerships with franchisees. Moving beyond traditional hierarchies not only fosters a more innovative and responsive environment, but also strengthens the overall success of the franchise system. 

Tom Wood is President & CEO of Floor Coverings International (FCI)