A case of mistaken franchise identity

What is it that potential franchisees are searching for when they investigate buying their slice of a franchise business? The obvious answers are the correct ones: greater financial independence, their own business and the self-determination this brings, something that appreciates in value and pays a wage at the same time, and an asset to pass on to the kids.

That is fine. So what are the considerations when deciding on the right franchise company to invest in? Again, the common responses are the ones we all think of and they include availability and location of sites, training and ongoing support and conditions of the franchise agreement including royalty levy and terms of tenure.

It is interesting that the one thing very few potential franchisees consciously consider or research also happens to be the one thing that eventually provokes many franchisees to sell their business. It is the thing that causes the most dissatisfaction and frustration and, yes I have to say, bitterness, between franchisee and franchisor.

It is the one thing that can still cause your business to underperform, even if you have a prime business in a top location.

The ‘thing’ I am talking about is organisational culture.

Don’t be fooled into thinking this does not matter or that you will ‘work around it’. Certainly do not labour under the misapprehension that it is something you will be able to change or, probably, even influence. Don’t even assume that you know what it is. I have read over 200 definitions of workplace culture but not one seems to really encapsulate the essence of what it is. Indeed, definitions can vary wildly depending on one’s politics/world view/socialisation.

My experience and research lead me to believe that I am beginning to get a grasp of what it is all about (although this may be self delusion) and I understand its complexity in work environments. Like most things with franchising, organisational culture is far more complex than in regular business systems and work environments.

This is clear from the results of some research I conducted recently into workplace culture at a particular franchise. Results of this research highlight the complexity of culture in a multi-stakeholder environment – that culture is a two-way street, that good organisations can still greatly improve their performance by revisiting their cultural identity and that culture is its own creature you must learn to manage.

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The Franchise Council of Australia is a not for profit membership organisation that is the peak body representing the franchising sector in Australia.