Unit-Level Economics Before Top-Line Growth

In a recent episode of “The Franchise Masters” series, Scott Zide , CEO of Empower Brands , brought a powerful theme to light. And he did so as a uniquely-qualified expert.

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In his interview, Scott cautioned how many franchisors are always worried about top-line growth and not the profitability of the franchisee. However, that’s not how Empower Brands has reached historic heights.

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“Because of our franchisee-first mindset, we look at bottom-line first. Are the franchisees successful from the profitability standpoint? We call it the unit-level economics. And it’s most important to us.” – Scott Zide, CEO of Empower Brands

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Of course it is. Not just because he’s a CEO overseeing 10 brands that will do more than $1.4B in annual systemwide sales. But also because Scott began his career as a unit-level guy.

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Scott is one of those rare unicorns. And therein lies the magic for how he leads a rapidly-growing organization today.

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He has been a franchisee, a multi-brand franchisee, a franchise founder, a franchisor executive and now the CEO of a platform company. Yet, no matter how high his career takes him, he never loses sight of where he came from.

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Franchisor execs who have at one time been franchisees know all too well what it’s like to put it all on the line. They’ve lived it. It’s personal to them.

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Perhaps that’s also why the bigger Empower Brands gets, the more intentional Scott becomes in connecting with franchisees.

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“I make a point every month to talk to 10 franchisees only about how we are doing at Empower Brands,” he said in his Franchise Masters interview.

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Imagine that. A CEO inviting a personal report card from 10 different franchisees each and every month.

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When we spoke at Franchise Update Media 's Franchise Leadership and Development Conference in Atlanta, I had to ask why.

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“Well, as you know, that’s where I came from,” he explained.

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Having walked in a franchisee’s shoes, Scott understands what it’s like to risk it all. And now that he occupies the C-suite inviting others to do the same, he welcomes constant feedback to ensure that he, the franchisor, is living up to their expectations.

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He echoed that focus on the main stage at FLDC too. Speaking on a panel about "Leading & Selling Through Challenging Times" he had this advice for attendees: "Be curious." Always keep the franchisee’s success in mind throughout the growth journey.

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Empower Brands will bring on some 125 new franchisees this year. Meanwhile, Scott and his team will purposely avoid what he calls the rinse and repeat mindset alongside that expansion. Instead, by his organization’s own example, he aims to:?

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• Be agile. You have to adapt to be able to make decisions fast.

• Innovate. Even in those tough times, it forces change...often for the better.

• Build trust. Be transparent, authentic and real, and always look for ways to recognize your team.

• Lead with empathy. “You have to feel for your franchisees,” he said.

• Overcommunicate. Where the brands used to communicate 5-6 times with franchisees on an issue, they now communicate 10 times.

• And stay true to who you are.

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As Empower Brands stays true to unit-level economics with a franchisee-first mindset, top-line growth has been a happy outcome.

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[Note: Empower Brands is a client of BizCom Associates .]