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According to Mimi Masala, divisional director of Cashbuild, “Franchisee satisfaction and engagement are critical for the success and sustainability of any franchise system. “How then do we, as franchisors, locate and hire the best franchisee for our brand, maximise your partnership with them so that they thrive in your franchise system, and motivate them to perform at their best for the benefit of both their outlets and the brand?’

Masala was speaking at a recent franchisor mentorship breakfast, hosted by Nedbank in partnership with Franchise Coaches.

Masala, who has spent 22 years in franchising as both a franchisee and in various franchisor roles at McDonalds, founded a franchising consultancy, and is now a director at Cashbuild, believes that unlocking the potential of your franchise network necessitates a comprehensive strategy focused on acquiring, retaining and motivating franchisees.

Attracting the right franchisee for your brand

Masala says that the ideal franchisee possesses a combination of personal attributes, professional and practical skills, alignment with the franchisor’s values, and access to finance. ‘Personal attributes cannot be underestimated. The embodiment of the perfect franchisee is someone with a strong entrepreneurial spirit, a strong desire to own and operate their own business, combined with the willingness to take calculated risks. You’re also looking for passion and enthusiasm, particularly for your brand – do they use your products, for example? Resilience and determination; integrity and trustworthiness; and adaptability round off the personal attributes that the ideal franchisee requires to make it in the game.’

Along with a strong desire to deliver exceptional customer service, successful franchisees also need to possess leadership and management abilities, a basic understanding of financial management, skill in sales and marketing, and the ability to oversee daily operations. Masala adds, “On top of that, you are searching for people who share the franchise systems vision, values, and dedication to upholding brand standards, as well as an openness to cooperating and fostering positive communication.”

While finding these individuals may sound impossible, Masala says they are out there and outlined various marketing strategies to attract them. ‘The bottom line is that the onboarding process should be as thorough and methodical as possible. At McDonalds, for example, part of the onboarding process included on-the-job orientation, which exposed potential franchisees to the nuts and bolts of being a part of the McDonalds family. This enabled them to make an informed decision about buying into the franchise system and helped us establish whether they were the right fit for the brand.’

Relationships are key to retaining happy, successful franchisees

‘I cannot emphasise enough how important relationships are to the franchise partnership,’ says Masala. ‘If you, as a franchisor, aren’t a people’s person, hire someone who is. If you say you have an open-door policy, make sure you’re available. Remember that your franchisees are your partners in this journey – it’s important to establish and maintain mutual respect and understanding.’

Examples of how to establish a supportive environment practically involve setting up regular check-ins, offering anonymous feedback options to promote honest input, forming franchise advisory councils for discussing issues and proposing enhancements, delivering regular updates and training and fostering a community culture through online forums and in-person conferences and events.

Masala emphasizes that motivating franchisees is the key to fully unleashing the potential of your franchise system. She highlights the importance of implementing incentive programs and publicly recognizing franchisee accomplishments, even on an international scale for global brands. Additionally, involving franchisees in strategic decision-making, encouraging their input on improvements, and granting operational flexibility are equally crucial aspects.

More ways to thrive and not only survive

If you have put in place the necessary steps to establish a suitable culture and atmosphere for your franchisees to succeed. Masala suggests that your franchisees will probably choose to stay within your system and potentially grow. Masala concludes that by offering opportunities for multi-unit ownership to motivate franchisees to innovate and expand you will be expanding your brand in collaboration with established, successful operators, resulting in a mutually beneficial situation.

Head of National Retail Serviced at Nedbank Commercial Banking Karen Keylock says that the vision for these forums is to tap into the finest minds in the industry to share best practice, practical advice and ideas to inspire franchisors throughout the industry and support the franchise sector as a whole. ‘At Nedbank, we believe our role goes beyond offering the best financial products in the market but to providing access to knowledge and advice like Mimi has shared today. When you bank with Nedbank, you have a partner, strategically aligned to your growth narrative that can help your business unlock the next level of growth and support you with your financial needs and business aspirations.’