Global Franchise- Issue 35

18 GLOBAL FRANCHISE | ISSUE 5.6 Seven ways to maintain a strong relationship with franchisees How 2020 enabled franchisors to embrace change and support their international franchise networks in the process f you ask 100 franchisors to list the ways the pandemic changed their relationships with franchisees, you’ll get at least several dozen different answers. But there will be one consistent answer: Change. “Change is good; you go first,” wrote the late Tom Felte`1nstein, who coached franchisors for many years to help them understand how to better support and advance the success of their franchise networks. It’s human nature to resist change. Before we make changes, we want time to look at the alternatives and study the predicted outcomes. We want to know the pros and cons of change and, of course, any affiliated costs. But up against a pandemic, those who wait for someone else to change first already lost. Franchisors like to win! Some are better than others, and the best proved in 2020 that they had to make changes without waiting to test, to speculate, or to ask too many questions. Many franchisors changed their plans in a heartbeat, or so it seemed. They changed faster than people and companies usually change. And many changed again and again. During the first several weeks of the pandemic I often got this question: “What’s Ray doing?” Ray as in Ray Titus, founder and CEO of United Franchise Group with 10 franchise brands operating internationally. Ray as in Ray Titus who several years ago pledged $1.5m to teach people about franchising at the Titus Center at Palm Beach Atlantic University. “What changes has Ray made?” Even though I didn’t specifically know what Ray was doing I knew one thing for certain: Ray was selling franchises! Because that’s what seasoned franchisors do. With obligations to communities of people including franchisees, suppliers, investors and employees, franchisors sell franchises even in a pandemic. That’s how I answered everyone who asked about Ray but then I decided to host a Zoom franchise conference entitled What Franchisors Can Do Now , featuring Ray and other members of the Titus Center Advisory Board. The interest in that conference led to a dozen more conferences, most of them designed to help franchisors and franchisees succeed in spite of a pandemic. While “change” became the byword for success in a pandemic, it was easy for franchisors to know what to change. How to I THE AUTHOR Dr. John P. Hayes is chair of the Titus Center for Franchising at Palm Beach Atlantic University in West Palm Beach, Florida make changes also fell into place, especially as franchisors spoke to their franchisees and to their advisors, including other franchisors, all of whom were also making changes. Many changes almost instantly became “aha moments”. Franchisors said to themselves: “Why weren’t we doing that (or doing it that way) all along?” Almost every change strengthened the franchisor- franchisee relationship, and many changes saved money. Perhaps most importantly, changes that obviously benefitted the franchisees demonstrated the franchisor’s commitment to the franchisees and to franchising as a business strategy. By the end of winter 2020, franchisors were living in a “new normal” as they continued to sell franchises, train and support franchisees, and provide essential products and services to the consuming public internationally. It wasn’t an overnight success. WORDS BY DR. JOHN P. HAYES , CFE INS IGHT “By the end of winter 2020, franchisors were living in a “new normal” as they continued to sell franchises, train and support franchisees, and provide essential products and services to the consuming public internationally”

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