How can you spot a credible franchisor? Research at Griffith University has found that a leadership style called transformational leadership achieves greater franchisee buy-in to brand initiatives.

We have discovered through our own independent research at the Franchise Relationship Institute that passion for the brand is the most powerful driver of everything positive in franchising, including franchisee performance and all scientific measures of franchisee satisfaction. 

So what drives brand passion?

What is clear from the Griffith University study, and reinforced by our own research, is that a particular type of leadership is the key. While academics refer to it as transformational leadership, at FRI we call it Leading with Credibility. We have since also been able to identify objectively the leadership behaviours that create high levels of brand passion and buy-in to new initiatives.

Five behaviours of credible franchisor leadership

  1. The franchisor demonstrates a clear strategy and direction for the brand (including awareness of competitive threats with a plan to deal with them).

  2. The franchisor is fair and consistent in dealings with all franchisees (this means having clear policies and sticking to them).

  3. The franchisor shows respect by listening to franchisee ideas and concerns before making important decisions. However listening does not mean agreeing.

  4. The franchisor embodies the values of the brand in their own behaviour. Hypocrisy kills brand passion like nothing else.

  5. The franchisor reminds franchisees that he/she and the entire support team care about franchisee profitability as much as their own.

• Greg Nathan is founder of the Franchise Relationship Institute

Image: guise-p.schools.nsw.edu.au