Top 5 Questions Franchisees Are Asking - Part 2
Apr 15, 2025
What are the top five questions franchisees are asking this week? Based on recent conversations with AFA clients and insights from AI and Google Trends, I have compiled the concerns that franchise leaders are currently facing.
These range from accountability tactics and investments in technology to growth strategies and managing price increases. Although the topics vary, all of them strive to enhance productivity and efficiency in franchisees, their operations, and their leadership teams.
You may also be wondering about these issues, and this blog post can provide you with the answers to improve your operations and your leaders.
Subscribe to our YouTube channel and Podcast, and follow us on all social platforms so you don’t miss our future content!
#1: How to Hold Unit-Level Managers Accountable Without Micromanaging Them?
What a great question! This is a frequent question among franchisees, and I have to say that the best way to keep people accountable for what you expect of them is by being clear about your expectations.
Of course, we know what we want them to do, but how often do we actually share this with them? Let’s be honest; sometimes, we don't do a good enough job.
- The clearer and more measurable you can make those expectations, the better chance they will have of meeting them.
Communicate your expectations for each KPI (key performance indicator) you will follow up on. If you have an expectation regarding sales, specify exactly what the number or percentage is. If it’s around labor costs, give them the exact goal they must achieve. The same goes for cost of goods, customer service, speed of service, or turnover.
You need to have a metric behind any and all expectations you have of them, whether it’s a performance goal or an action they have to execute. Avoid vague statements like “Sales should be up”; instead, give them clarity and let them know the exact amount you want them to achieve.
Keep learning: Game On, Using Metrics to Elevate Your Franchise
Ideally, the leaders in your organization will know how to move your numbers, but please never assume that they will know how to achieve this. Always confirm that they understand how to proceed, and then follow up with them on a weekly, biweekly, monthly, or quarterly basis, depending on the KPI.
If they are not meeting those expectations, have a conversation with them to address this in a neutral manner. Allow them to explain why this is happening; they may require support, training, or coaching, or perhaps the numbers are unrealistic, and you have to redirect them.
Micromanaging does not work with most managers, particularly the top performers. There is a fine line between delegating responsibilities to someone and micromanaging them. Establishing clear expectations is a great stepping stone for them to achieve their goals without needing your constant oversight of every detail in their daily tasks.
#2: Are AI-Powered Scheduling and Inventory Tools Worth Investing In Right Now?
I love technology, but I will tell you that before exploring AI tools to create schedules, first you need to make sure that the managers you are entrusting to create those schedules know exactly how to execute and follow up on them properly.
- In my opinion, it’s not about replacing people; it’s about helping people do a better job.
If you plan to use an AI tool, your managers need to understand what that technology does so they can make the most of it when creating a schedule that meets the business's expectations.
If you have a different opinion and know of an AI platform that can create amazing schedules while considering all the human aspects, please let me know! I would love to hear about it and share it with our community.
Don’t miss: The Power of Business Texting - How & Where to Use It
#3: What's the Best Way to Handle Price Increases Without Losing Loyal Customers?
Usually, your franchisor will provide recommended retail pricing based on a very detailed analysis of the market across the country. This would be the first place to start.
Now, there is a balance between raising prices and ensuring that customers are not disappointed. This tactic should not cost you customers or valuable transactions for your business.
- If you choose to increase your prices, you have to be very careful and make sure that they're not out of line with your competitors.
Check your competitive pricing against your neighbors and other competitors in your area to make sure that you're not out of line. Please note that this includes not only franchisees within your brand but also businesses with similar products or services.
If you are above the range, find other ways to be more efficient or profitable in your business. Otherwise, you might lose loyal customers.
Everyone knows that prices are rising and that inflation is a reality in our world. Therefore, increasing prices occasionally is expected. As long as your customer service and experiences do not decline and remain consistent with each visit to your stores, you will be able to retain your loyal customers.
In case you missed it: 4 Smart Questions and Actions to Face a Possible Recesion
#4: How Can I Grow Without Diluting My Culture?
At the start of a multi-unit franchise, business owners have the opportunity to spend time with their teams; they learn about the people, and the people learn about the owner. This helps foster the culture and uphold the mission, vision, and values daily.
However, one of the challenges that come with growth is that franchisees are not able to be present in the units as often as they were before. As the organization grows, reaching out to the team members on the front lines gets more and more difficult.
That’s why it’s crucial that you build a relationship with the Unit Managers and District Managers (if you have them) so they can experience the type of culture that you want to create and reinforce it with the team members every day.
To ensure your culture continues to spread and strengthen as you grow into 10, 15, and 20 units, you have to drive it to your top leaders and then have them drive it into your units every day. If you do that, you're more likely to keep that culture alive in your organization.
Keep learning: How to Achieve Consistent Execution in Your Franchise
#5: Should I Stop Opening Units and Focus on Fixing the Underperformers?
Sometimes, you have to continue with your growth plan while also keeping an eye on the stores that are struggling, especially if you have a growth goal, a financial commitment, or people waiting for an opportunity to grow.
Growth is excitement. Growth is motivation. Growth could be part of your culture. If you are trying to create a culture around growth and success, then you must continue with your growth.
Keep learning: "The Challenge Culture" from the Former Dunkin Chairman
It’s important that you don’t let your underperforming units stop you from successfully growing your organization!
Sometimes, it just takes additional focus and support to turn those units around. That’s why a smart approach to tackle this is to have someone assist you with the underperforming units, allowing you to focus on driving growth and avoid getting stuck in the everyday issues of those units.
Assigning a strong leader in your organization to redirect struggling stores will allow you to split your efforts and manage both situations effectively.
However, if the situation is really bad and the unit isn't even reaching breakeven, negatively affecting all the other units, then you may need to make a difficult decision, such as closing that store.
If, in the end, you have to choose between growing or fixing underperforming units, I recommend deciding based on your goals, expectations, and the culture you're trying to drive in your business. That will help you determine what should be your priority.
If you want to ensure that every single unit is profitable, then maybe you should slow down your growth and focus on the underperforming units to turn them around if possible. Otherwise, take a quick decision and then refocus on the growth of your organization.
Those are the top five questions that franchisees are asking this week. If you have any additional questions, send them to me, and I will answer them in future blog posts. I hope that this gave you some guidance for your franchise journey and you enjoyed this content.
Remember, the American Franchise Academy is your partner and your supporter in your franchise journey, and we can provide you with the knowledge, tools, and resources to help you become a successful franchisee.
Additionally, we offer training programs for District Managers and Unit Managers on the leadership and management skills they need to help you and themselves be successful.
Click below to explore our programs:
- COMMAND Program, for Multi-Unit Franchisees.
- LEAD Program, for District Managers.
- MANAGE Program, for Unit Managers.
WATCH THIS PODCAST ON VIDEO:
