Take action to boost your profits by investing in your franchisees and staff.

Coach and educator Tracy Eaton, Remarkable Franchises, says staying on top of compliance issues is paying off for franchise systems.

“Trusted franchise brands are constantly monitoring franchisee performance and compliance with legal requirements, like wages, and do double check their processes and policies to mitigate risks when issues are brought to light.

“Successful franchisees understand it’s not only the operating systems in place that bring customers through their doors but it is also the staff, and they value them.”

Eaton cites multi-unit  franchisee Terry Creasey, who owns five McDonald’s outlets in Western Australia. He has invested significantly in his team’s development and training, over and above what is recommended and provided by McDonald’s, to retain loyal staff and grow the business, she says.

“It can be easy for a franchise to fall into the trap of cutting costs in relation to their staff to save money but in the end, it costs them more in the long term and limits their capacity to grow.”

Eaton says there are a number of ways to invest in franchisees and staff to return bigger profits.

1. Franchisee learning networks

With the rate and speed of change, franchisors can’t be expected to provide the level of individual franchisee development over and above the operational and business training for their franchise system. Special franchise learning networks provide opportunity for exponential and individualised franchise development for more consistent and faster success.

2. Staff training and development programs

The human system is undercapitalised in franchises. Programs supporting the future of work like progressive leadership, leading change, culture and team work, keep staff enthusiastic and provide an unprecedented edge that maximizes capability, performance and profits.

3. Career and succession plans

Franchisees like to know where their business is headed; likewise, staff with their careers. One size doesn’t fit all. If they can’t see themselves progressing in their existing work environment in line with their personal goals and ambitions, they will leave or become disengaged and potentially impact the brand’s success.

4. Franchise mentor

Look to ways to deveop a strong culture across the network. Hire a franchise culture and leadership expert to develop an “I want to work there’ culture and brand that attracts the right people, and ensures franchisees and staff thrive and so does the business.

“Franchisees not doing the right thing are getting caught and now franchisors can be penalised just as much,” says Eaton.