Buying and running a franchise, it’s a rollercoaster ride!

Sarah Stowe

There is a journey on which I travelled as a franchisee, and which almost every other franchisee I have ever met has also travelled. The places this path leads to are not physical – they are psychological – and include emotions such as hope, joy, disappointment, frustration and renewed confidence.

If you are beginning your journey into a new franchise business, chances are you will also travel along this path. And in so doing you will fall under the spell of what I have dubbed ‘The Franchise E-Factor’.

The Franchise E-Factor is not a mental aberration or something to be fearful of. It is simply a natural maturing of the relationship you will have with your franchisor as you move from dependence, to independence, to interdependence. This happens as you gain greater competence and confidence in running your business.

If you have a commitment to your business, and are prepared to work through the ups and downs of life as a franchisee, you will travel through six distinct stages. Some people move through these stages swiftly and more or less painlessly. For others, like me when I was a franchisee, the path can be frustrating.

Here are the six stages and some of the thoughts and feelings associated with each.

1. Glee Stage

I am very happy with the relationship I have with my franchisor. They obviously care about my success and have delivered all they said. I am excited about my new business and full of hope for the future.

Positive emotions run high at this stage. There is a great sense of achievement for everyone as the numerous hurdles in establishing the business have now been cleared.

2. Fee Stage

Although I’m making money, these royalty payments are really taking the cream off the top. What am I getting for my fees?

As we start to get our head around the business’s finances, we become more sensitive to expenses, especially franchise royalty and advertising fees. These can feel like annoying expenses that just eat into our profits.

3. Me Stage

Yes I am successful. But my success is a result of my hard work. I could probably be just as successful without my franchisor.

We tend to attribute our success to our own hard work, and the franchisor gets little credit for the support they’ve provided. But if things are not going so well, the franchisor is often blamed! As the name suggest, at this stage, “It’s all about me!”

4. Free Stage

I really don’t like all these restrictions my franchisor is placing on the way I run my business. I feel frustrated and annoyed at their constant interference. I want to be able to do my own thing and express my own ideas.

As our business confidence grows, our drive towards independence will assert itself and we may feel resentful having to follow our franchisor’s direction and procedures. Chances of conflict are greatest at this stage.

5. See Stage

I guess I can see the importance of following the franchise systems. And I do acknowledge the value of my franchisor’s support services. I can see that if we all did our own thing standards would drop and we would lose the very things that give us our competitive edge.

To move to the See stage there often needs to a frank and open conversation, where we listen carefully to the franchisor and they listen to us. Mistakes and misunderstanding may have occurred on both sides, so there needs to be an acceptance and letting go of past frustrations.

6. We Stage

 We need to work together to make the most of our business relationship. I need some specific assistance in certain areas to develop my business but I also have some ideas that I want my franchisor to consider.

There will be a natural progression to the We stage as we recognise that success and satisfaction in a franchise network come more easily from working with, rather than against, the franchisor and our fellow franchisees.

While the We Stage is a worthy goal to strive for, there is a proviso.  Franchising all about profitable partnerships, so no-one gets to the We Stage unless their business is profitable. And they need a franchisor that cares about their success, listens to their ideas, and provides relevant, responsive support.

So choose your franchisor wisely. Do your homework and talk to as many franchisees as possible, and ensure the business model is profitable for the bulk of the people you talk to.