The Six Stages of Franchising
This week, I had the opportunity to talk to a friend of mine who is a franchisee in a legacy brand. We scheduled the conversation based on a text that she had sent me, where I knew I needed to talk her off the ledge.
We scheduled a one-hour call because I anticipated needing to do a lot of listening. From my experience, when someone is frustrated with their business or something about it, a listening ear is the number one thing they need.
I admit that I am not the best listener— just ask my husband. I tend to listen to respond rather than listening with the intent to understand.
My usual approach is to start problem-solving, asking lots of questions to try to help the situation.
When the time came for the call, I tried to LISTEN intently.
Without disclosing too much of the situation, my friend was disillusioned with a few things happening within the franchise system and was now complaining about her franchisor.
Her situation is NOT unique.
Over the 25+ years I have been in the franchising space, I have found that franchisees often experience frustrations and, without knowing what to do, they look to place blame on the franchisor.
Sometimes the franchisor deserves the blame, and sometimes they don’t.
After asking her to take some deep breaths, it was now my turn to talk.
“Do you know that what you are going through is completely normal?” I asked.
I then went on to share with her the psychological journey of a franchisee. I had learned about the six stages of franchising years ago and believed SO MUCH in these stages that we added the content to our New Owner Training for JBF. We discuss these stages with every single franchisee so that when they encounter them, they will recognize where they are and be able to problem solve around a common occurrence
Understanding the Emotional Journey of a Franchisee
In the world of franchising, the journey of a franchisee is not just about business metrics and operational strategies; it's also a profound emotional and psychological path. This journey often leads to various emotional states, such as hope, joy, disappointment, frustration, and renewed confidence.
As someone who has traveled this path multiple times, I can attest to its significance and its universal presence among franchisees. This concept is beautifully encapsulated in Greg Nathan's insightful article, "The Franchise E-Factor," which I highly recommend for a deeper understanding.
Introducing The Franchise E-Factor
Starting a new franchise business is an exciting venture, but it's essential to recognize that this journey involves more than just operational tasks and financial considerations. You'll likely experience a range of emotions and stages as you develop your relationship with your franchisor and gain confidence in running your franchise. This progression is what Greg Nathan describes as "The Franchise E-Factor."
The Six Stages of The Franchise E-Factor
The Glee Stage. Initially, franchisees are filled with excitement and hope. This stage is marked by high levels of satisfaction and optimism as new franchisees anticipate success and enjoy the initial support from their franchisor.
Feelings: Nervousness, Excitement, OptimismThe Fee Stage. As franchisees become more attuned to their business finances, they start to feel the impact of royalties and fees. This stage often brings about questions and concerns regarding the value they receive for these payments.
Feelings: Questioning, Commercially minded, SkepticalThe Me Stage. In this stage, franchisees attribute their success to their own efforts, often underestimating the support and structure provided by the franchisor. This can lead to a sense of independence and a feeling that they could succeed without the franchisor.
Feelings: Self-centered, Proud, FrustratedThe Free Stage. Franchisees in the Free stage feel restricted by the franchisor's rules and procedures. Their growing confidence and desire for autonomy can lead to frustration and a desire to break free from perceived constraints.
Feelings: Cynicism, Constrained, CombativeThe See Stage. This stage is characterized by a shift in perception. Franchisees start to recognize the value of the franchisor’s support and the importance of following the established systems for the overall success of the franchise network.
Feelings: Inquisitive, Open minded, EmpathicThe We Stage. In the final stage, franchisees understand the mutual benefits of a collaborative relationship with their franchisor. They see the value in working together and are open to providing feedback and seeking support to achieve common goals.
Feelings: Cooperative, Assertive, Forward thinking
Navigating The Franchise E-Factor
Understanding these stages can help franchisees make sense of their feelings and navigate their relationship with their franchisor more effectively. It's important to recognize that these stages are a natural part of the franchising journey and can lead to a stronger, more productive partnership.
After my friend and I reviewed these six stages, she recognized where she was on her franchising journey. This allowed us to effectively problem-solve around her frustrations. She left feeling encouraged and hopeful for the road ahead.
For more insights into improving franchise relationships and understanding “The Franchise E-Factor”, I encourage you to read Greg Nathan's comprehensive article and explore the resources available at Franchise Relationships.
Shine Lesson Learned
By acknowledging and addressing the emotional aspects of franchising, both franchisees and franchisors can work towards a more harmonious and successful business relationship.
Are you a franchisee feeling uncertain about which stage your business is in, or do you already have a sense of where you stand but need additional guidance to navigate your current challenges? Sign up for a clarity call with me here! Together, we can delve into your specific situation, gain deeper insights, and develop targeted strategies to address any issues you're facing. Let’s work together to turn your goals into reality!
Shine on, Shannon
