Good Franchise Leadership


Good leadership is a hard quality to define, but we know it when we see it. Leadership can be demonstrated by the willingness to make a sacrifice, respond to a challenge, or venture into uncharted waters. Leadership is that rare blend of tangible and intangible qualities that make others want to follow in the leader’s path.

When it comes to a franchise company, a leader’s philosophy should be: “When our franchisees make money, then we make money. Therefore, we will help them to succeed in every way that we possibly can.”

Here are some qualities of a great franchise leader:

  1. They do their homework.They constantly monitor the entire operation, maintaining the financial balance between the support that is promised to the franchisees and the cash flow that will provide that support. They have read the manuals, sat in on the training,and participate in the sales process so that they completely understand “the system” that they are offering.
  2. They have vision. They know where the company is going and can make a plan to inspire their team. They are constantly looking ahead and make sure that the company is 100% profitable.
  3. They listen to their franchisees and learn from open communication. They understand and acknowledge that most of their successful ideas come from franchisees. They have established a formal line of communication through a franchise advisory council to serve as a guide and sounding board for decisions, and they are willing to discuss issues informally to keep the franchise running smoothly.
  4. They are accessible. They take the time to go on the road to meet new franchisees and to renew their relationships with the established ones. Franchising is a business of partnership. Personal relationships inspire mutual loyalty and understanding.
  5. They have respect. Good leadership sets the attitude that permeates the company. They treat their franchisees as experienced business partners, explaining their decisions with statistics and logic rather than handing down ultimatums. When the leadership speaks of its franchisees as “our franchisees” (rather than “those guys”) it demonstrates the spirit of mutual respect and integrity that is necessary to validate and sell franchises.