A franchise system requires effective leadership to succeed either as a franchisor or franchisee. In the franchising world, leaders (franchisors) make more leaders (franchise owners), who go on to make more leaders (managers or employers).
If you are looking to invest in a franchise opportunity, it’s important to consider the traits of an effective leadership team. Does the team have a clear vision? Do the team members support and guide one another when necessary? These are important questions every potential franchisee should ask those already operating the business. In the same way, franchisors are looking for prospective franchisees with strong leadership skills to help grow their brands. Since franchisees own the business, they will have to assume a leadership role. So, if you don’t like delegating tasks or are naturally pessimistic, you may not be cut out for franchising.
Below are the 7 essential traits of franchise leadership for franchisees and franchisors alike:
1. An Upbeat Attitude
There’s no question that positivity begets positivity. When the owner of a franchise business is optimistic, he will set a positive tone with his workers and within the establishment. Employees with a positive mindset will feel more at ease at their workplace and empowered to put in their best efforts. Likewise, franchisors who provide a positive environment for the franchise system can motivate others to follow suit. This helps establish a positive culture through the franchise system, inspiring other people to thrive in their business.
2. Adaptability
One of the most used business buzzwords of 2022 was “pivot.” Franchise companies that were able to “pivot” survived – and even made profits – throughout the covid 19 pandemic. The coronavirus gave the franchise industry an opportunity to demonstrate its strength and resilience. Be it a franchise restaurant offering curbside pickup or gyms holding online classes, franchisees and franchisors had to operate differently to abide by the social distance limitations necessitated by the deadly virus. Franchisors also help their franchise owners to pivot (adapt) by providing support and guidance.
3. Ready to Take Risks
As a business owner, you cannot play it safe. Starting a business is a big risk, even one with a working system. Sure, franchising helps reduce that risk, but franchise owners still need to take risks. Similarly, franchisors – especially those who established franchise companies – take bigger risks. They are the ones who come up with the franchise idea, implement it, and then sell the right to franchisees- all these are certainly risks but with huge benefits.
4. Integrity
Another essential trait for both franchisors and franchisee owners is integrity. Whether a franchise system succeeds or fails depends on the integrity (or lack thereof) of those in charge. The franchise brands are the owners of the business license and the brand and image. For a franchise system to succeed, the franchisors need to have integrity and a positive reputation. Likewise, franchisees have to operate with integrity to protect their reputations as business leaders in the local areas and as good representatives of the company.
5. Passion
You need to be passionate about what you are doing to be a great leader. Franchisees and franchisors should be able to give the franchise their all. Nobody will want to join a franchise company if the franchisors have no passion for it themselves. Similarly, a franchisor will be happy to give territory to a prospective franchisee who does not appear keen or show enthusiasm for the franchise brand.
6. Excellent communication skills
The keys to achieving success either as a franchisor or a franchisor are open dialogue and regular communication. If you don’t have good communication skills, it will be difficult for you to spearhead a team and set expectations.
7. Ability to Delegate
As a franchise owner, you should be able to delegate to grow your business. You need to be comfortable splitting important tasks among your teams, so you can conquer them together faster and efficiently. If you are the type that likes to handle everything on your own, there are some operator/ owner model franchises that could suit you. However, most franchise owners will have to bring in and depend on employees to help run their establishment. Franchisees who want to take their businesses to the next level should look for guidance from the franchisors who can help them create a well-written plan for the long term. Franchisors delegate by giving territories to potential franchisees. And they will have to add more people to their support team as the brand becomes bigger and bigger.
