3 Ways to Retain Franchisees Once They’re in Your System

Franchising is an industry that works best for brands and owners alike when a win-win situation is created. In order for brands to move forward, the local owners behind them need to be doing well in their individual businesses. That’s why franchisee retention is of the utmost importance — without happy franchisees sticking around, franchisors will never be able to move forward.

The ways that brands retain franchisees that are already in their system varies across the board. That’s why 1851 Franchise spoke with executives from three different brands to get their take on what really goes into creating — and maintaining — long-term relationships with franchisees. Here are their top pieces of advice.

David Davoudpour, Chairman and CEO of Shoney’s: “As always, retaining franchisees is a process. And if it’s not right from the beginning, it’s never going to be right. Like any good relationship, you must take your time to understand your future franchisee. You have to explain to them the financial needs and qualifications, and they need to understand what it means to become apart of the brand. That itself is one piece that they must understand — that goes into what it’ll take to stay. On our end, what we then have to do is provide strong support throughout the system. That includes a variety of functions, from branding and marketing support to real estate development and construction oversight. But above all of these things is training. That’s the biggest piece of what will ultimately determine whether or not a franchisee will stay.”

Roger Martin, RockBox Fitness: “We are a younger franchise. While we currently have 11 franchisees in place, the first one is preparing to open their first gym. But our approach — especially as a younger brand — is to work hand-in-hand with these locations. That includes everything from site location and facility layout to pre-launch marketing and staff training and recruiting. We’re actively involved in our franchisees’ businesses because at the end of the day, we’re in it with our franchisees. The more support they have, the more likely they are to be successful and grow their businesses. It’s not rocket science — it comes down to strong execution.”

Lonnie Helgerson, President of Helgerson Franchise Group and Kix Mobile’s Chairman of the Board: “Relationships start with leadership. Leadership has to understand the fundamental premise of franchising and the fact that in order to have a successful franchise, you have to have profitable franchisees. It absolutely has to be a win-win. Management also has to understand that it’s not a push-down type of situation — franchisors need to offer strong inclusion programs. There are hundreds of different ways you can include your franchisees, whether it’s an advisory council or bringing them in for strategic planning. But before franchisees feel like they’ve had some input on the direction or improvement of a brand, it starts with management’s ability to be transparent, have strong communications and be great listeners.