In a small franchising company which is growing fast and always under a cash flow crisis, it is essential to keep all franchisees profitable to prevent lawsuits, maintain royalty income streams and attract new franchisees who see their success in the market place.
Having been a Founder of a Small Franchise Company, which grew rapidly into a Medium Sized Franchise Company prior to my early retirement and sale of the company, I can tell you that the most important thing is to have successful franchisees in the market place. One way I achieved this was constantly motivating the team. Here below is an excerpt of one of the letters I had put out on our Intranet System, which illustrates one strategy of motivation, which worked so well for our franchise team;
“If you wish to have a new car by the second quarter, then write down the type of car, options and color and the date you wish to get it (pick Yellow). Also write down the amount of money you will need to afford it. Then the amount of increased business you will need to buy it and break it down by month. If in the third quarter you want to get lazer eye surgery or take a vacation write down where and how much. If in the forth quarter you want to increase sales by 130% then back it to the first quarter and the then the second and third to figure out the increase you will need to achieve each month to get there. Remember that we need this information to help you achieve your goals, if we do not know what goals you have it will be difficult for us to give you assistance towards those goals.”
I sincerely hope my experience, observations and knowledge in the motivating of franchisees and franchise teams gives you insight to winning in the market place. Please consider this in 2006, because you know what? It works and it is not in the text books, had to learn this one the hard way.
