Are prospective franchisees getting smarter?

Are prospective franchisees getting smarter?
Many franchisors are having increasing difficulty in recruiting new franchisees. They find that the competition is increasing and potential franchisees are spending more time evaluating several prospects before committing. With the current economic outlook this is likely to intensify.
Recent statistics published by the BFA show that although the franchising industry is growing at twice the rate of the UK economy there is a widening gap in business confidence between franchisors and franchisees. In the last few years this has widened from 7% in 1997 to 26% in 2006.
This confidence gap may be one of the factors in the difficulties franchisors are having recruiting new franchisees. Increasingly we are likely to see that candidates will pay more attention to the support they will get throughout the franchise lifecycle. These statistics infer that traditional support practices are failing to deliver.  This is likely to get worse because the cost and difficulties of travel are going up and just increasing the level of support by increasing resources will not be the answer.
So, as franchisors – how can we get more support capacity without having to use more people travelling greater distances? How can we convince those candidates that we are the franchise of choice?  The answer is to get our own “fit-for-purpose” Internet based support system to help us. We can freshen up our brand and make it exciting..
To many this may seem absurd but over the past few years there has been a significant shift in the way people communicate with each other. We see it every day not only with the increased use of mobile phones but also the way we use them to exchange photos and images to make messages more exciting
The advertising world has recognised this. We get pop up video advertisements on our pc’s to attract our attention. These are easily blocked if they become intrusive; nevertheless, more of us have the ability to access video to help us with our work.  A recent survey indicated that nearly 80% of phones used for business were linked to broadband - a rapid increase in network capacity.
Interacting with each other using video and web conferencing is getting less expensive and in future it will become the norm. Prospective franchisees will expect 24/7 support via the Internet but even in the short term providing such a capability will enhance your image (and competitiveness) as a forward thinking franchisor. You can also provide the benefits of getting consistency of training delivery to franchisees' staff and giving you additional protection for your brand.
So what should franchisors consider when choosing to use an Internet based franchise support system? Here are some thoughts.
The needs of franchises are different from those of large businesses and Intranets don’t provide the comprehensive packages required. Most franchises are relatively small and they all have their (almost) unique way of providing support even though they will use classroom training, help desks, franchise seminars, etc. They don’t generally have extensive IT resources.  So the first thing to consider is whether or not the software is “fit for purpose” ie has it been designed for company use, is it robust, easy to use and has it been designed with the specific needs of franchisors and franchisees in mind or is it a general purpose application open to abuse. Can it provide the range of applications that franchisors need from on-line individual coaching, through different types of learning, and working both individually and in groups in a secure way?  This is where Intranets fail as they don’t have the breadth and quickly run out of capacity. As franchisors you don’t want the complications arising from using different applications from different vendors with multiple passwords and overlapping functions. You want it all your needs met by one system.
By their nature, franchise networks tend to grow faster than companies so if the Internet Software becomes an integral part of your franchise support system it must have sufficient capacity for growth as the franchise operation grows, meeting all the foreseeable demands of a mature network.  At the other end of the spectrum - can it be ‘personalised’ and is it simple in the way it works so that franchisors’ individual support staff will want to use it.  
In Shared-Solutions we have worked with companies over many years using our Internet Corporate Learning platform and we’ve found that the key attribute that management teams require is the ability to ‘control’ the activities of users. So this should also be considered – what control and permission features are present and how will IP be protected. Does the software application allow franchisors to be selective ie can the franchisor control individual access to different learning schemes, communication processes and the franchise database?
This all seems overly complex but most of the burden should be taken by your software provider who should not only offer a lifetime partnership to support the franchise network for use of the platform but also should provide advice and help with producing content or what users see when the log on to your site.  
Any on-line communication and learning tool is only as good as it’s content otherwise it’s like buying a TV without the ability to access programmes. As a franchisor you will have developed a culture which matches your brand and the way in which you use your communication platform should reflect this.  E-mails and Intranets do not get people involved but content on your Internet communications platform should create engagement, excitement and enthusiasm through using video storyline templates for learning and capturing how-to-do-it processes. This is easier than it sounds by using some simple rules and templates.
We have found that with the right “fit-for-purpose” platform company users quickly see the huge benefits of modifying the way they work with each other – going  through a cycle of doubt, building self confidence and then taking the initiative and being very forthcoming about developing new opportunities for increasing the effectiveness of support and transferring knowhow whilst retaining control.
Our experience in Shared-Solutions with franchisors is that many franchisors feel they have a duty of care towards their franchisees to ensure they succeed as well as to further their brand reputation so the barriers to adopting new and better support processes can be overcome but it requires vision and commitment – qualities endemic in franchising!
 The Benefits far outweigh the costs - so maybe it is time for change.

David Overton
Shared-Solutions – provider of the NetWise Franchise Support System