Your franchisee is struggling with performance. How can you help them reach their potential?

The most important questions are where and why the “struggle” Using analytics to assess KPIs is helpful but also listening intently to their issues as they see them. In certain circumstances (if warranted), speaking to a staff with permission may shed light on a bigger picture. Usually it’s not an isolated issue. Struggles may arise from lack of understanding/ training or the owner may not have innate strength or low capacity in that area. An example may be soft skills such as people management -a bit more challenging to train but do-able. The obvious answers are additional training or delegation. Assess whether it’s coach able or delegate-able for better overall performance of the operation. Not all owners are “Jack of all trades”

First, as an expert, I would communicate with them directly and analyze data to determine the nature of their problems. After that, provide them the help they need specifically by providing operational tools, performance benchmarks, and improved training. Put them in touch with successful franchisees and set up a mentoring program so that they may learn from each other's mistakes and successes. Make sure you keep an eye on important performance indicators and provide helpful comments and incentives to motivate people to develop. For the franchisee to realize their full potential and adhere to the brand's standards, it is essential to cultivate an environment of mutual support and cooperation.

In today's environment, providing both top-line and bottom-line management support is essential for franchisors. I tell my team that if we aren’t identifying potential issues in studios six months in advance, we’re not doing our job. Franchisees should meet quarterly to set targets and build a financial model incorporating four months of actuals and eight months of projections. The support team should then operationalize this model, targeting KPIs and tracking progress monthly. Remember, franchisees join to be in business for themselves but not by themselves, and financial management and planning are often not their strengths. Strong support in these areas is key to their success and the success of the system.

Fellow franchisees are often the best at helping struggling franchisees. The franchisor can schedule Zoom sessions or in person mastermind-like sessions where struggling franchisees ask for help - although sometimes they don’t know how or what to ask. However, an examination of KPIs and the financials for 90 days will almost immediately show a successful franchisee where to focus attention. I’ve seen fellow franchisees work miracles with struggling franchisees.

Many franchisees I work with are exiting/ selling. They’ve been in the system for a while. In many cases, they’ve drifted away from SOP and not been involved enough to know about new practices and tools that have been adopted. Following the system and utilizing FBCs becomes less or eliminated. In some cases, they’ve found other ways of doing things- which may work better but my advice is always to stay connected and involved with the Franchisor, the FBC, and other high performing owners (operationally and otherwise). Share the wealth and don’t isolate!

As a franchise owner for 24 years and now a business coach who coaches franchise owners… Is important to employ the systems the franchise or offers as well as have accountability and focus on your activity. This is where a Certified Coach like me can and will make a difference. Most professionals struggle with their activity and managing their time. Reach out if I may serve you to help you get your franchise back on track.!