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How to help franchisees grow and protect their businesses in uncertain times

How to help franchisees grow and protect their businesses in uncertain times

Uncertainty forms a significant part of any business. Every business owner knows that without risk, there is no reward. The extent of the effects of Covid-19 could not have been predicted, or prevented, and businesses across all industries, including the franchise sector, were forced to adapt and change their business landscape as they knew it.

Franchising, however, has a strong operational model, and the past two years have shown that the sector is well positioned to thrive even in the most challenging times. Testament to its resilience, many franchises continued to operate even during really difficult moments, with entrepreneurs continuing to invest in, and launch, new franchises across the UK. 

Chris Wootton, Managing Director of domestic cleaning franchise, Poppies, gives his top tips to help franchisees manage risk and uncertainty so they can continue to grow and serve their customers.

  • Tried and tested business format

The franchise model reduces some of the risks associated with starting a new business as the

operating system has already been developed and tested by the franchisor. By its very nature, franchising offers the security of a proven model and has already been replicated successfully. From staffing problems to geographical nuances and system upgrades, you can be confident that someone in the network has experienced a problem and, together with the franchisor, worked to not only resolve it, but roll out preventative measures and maybe even enhancements for the benefit of the entire network.

  • Support network

One of the main reasons people choose to invest in a franchise rather than go it alone is the level of training and support received from the franchisor. The support is vital to any new franchisee’s success, and it is something that our business owners say was the reason they chose Poppies as their future. But something equally as important and valuable, especially when the going gets tough, is the support of your fellow franchisees. Establishing a reliable network of people that you can turn to when you are struggling with an issue, stress, or looking for emotional support, will make your life as a business owner much easier and help you overcome the challenges of running a business.

  • Key priorities and goals 

It is the role of the franchisor to lead with calm and confidence, as well as maintain a positive mindset. A big part of supporting franchisees is leading them through uncertainty and planning next steps, so it is important to focus on priorities, both new and existing, and develop customer growth so the brand can stay focused on overall growth plans. Franchisees are looking for guidance and strong partnership in these difficult times, so the franchisor team must be more focused than ever by continuing to move key initiatives forward.

  • Insight and knowledge

Franchisors are continually looking to maximise opportunities for their franchisees in their sectors, providing insight and innovation to differentiate themselves from competitors. That could be anything from reviewing industry regulations and legislation to following government guidelines, which we all had to follow during the pandemic. Whether it is working to pivot products and services, adapt marketing messages or even put the wheels of a crisis communications plan into motion, the franchisor is working for the common goal – franchisee success.

  • Help to control costs

Most small businesses have significant fixed costs including rent, loan repayments and wages. Fixed costs can quickly sink a business when there is a drop in sales or it is faced with an economic crisis, so it is vital for a franchisor to find ways for its franchisees to reduce their cost and adjust their budgets. Focusing on short-term cash flow and ways to build long-term sustainability will increase their financial viability. 

  • Improved purchasing powers

There are cost advantages to using the franchise business model that you would not receive as an individual business owner. Increased buying power can often see prices held or discounted during economic uncertainty as the franchisor and the brand, rather than the individual franchisee, step in to leverage key relationships. Franchises have supplier partnerships in place that allow you to purchase inventory at a reduced price. These relationships have been developed over time and could be difficult to establish quickly on your own. Bulk buying power, for example with cleaning products, can also help to protect supply chains and mitigate disruption. And more savings for you translates to higher profitability.

  • One step ahead

It is a franchisor’s responsibility to stay ahead of the game and to remain agile to ensure that they protect the business interests of every one of their franchisees. Franchisees have the benefit and comfort of knowing that the overarching foresight and support of a franchisor can prove vital for survival. In a time of national crisis, a franchisor will co-ordinate a company-wide response and disseminate new policies, procedures and, perhaps most importantly, be a voice of reassurance and guidance for the entire network.

“Franchising has proven to be a resilient business model in the testing times brought upon us by Covid-19. The last couple of years have taught us that no matter how hard we plan for the future, things can and will change, but the uncertainty that awaits us does not have to hinder franchisees from growing and expanding their franchise. As franchisors and business owners we can always adapt and find new solutions. While franchises may still suffer in a recession,they have proven to be far more secure and stable than independent business ventures due to their established brand, expertise and experience.”

Author bio

Chris Wootton is owner, Managing Director and also longstanding franchisee of Poppies with over two decades of personal experience in both the cleaning and franchise industries. Launched in 1980, Poppies was the UK’s first ever cleaning franchise. Today, the 23-strong network turns over more than £5 million annually. Having taking ownership of the brand in 2018, Chris is leading the business into a new phase of expansion and growth and has just launched the next generation of the Poppies franchise opportunity.

Poppies UK Ltd

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