Each franchisee is a brand ambassador

Each franchise operator is a brand ambassador who speaks for the entire brand. A customer does not know, and does not care, whose name is on the franchise agreement. Disappoint a customer in one store and they may very well stop going to all stores! A failure to execute and meet the brand’s standards in one store doesn’t just hurt this operator’s sales and reputation, it hurts all other operators’ bottom line.

Good franchisees attract…more good franchisees

An execution-minded brand not only attracts customers, it also attracts potential franchisees. Multi-unit retailers often spend considerable resources – dedicated websites and trade-shows – attracting new franchisees. Franchisees-to-be are more likely to invest their life savings with an operationally strong brand than with one perceived to be inconsistent and deficient.

The conclusion for retailers is two-fold

a) Each franchise operator is a brand ambassador who speaks for the entire brand. A failure to execute and meet the brand’s standards doesn’t just hurt this operator’s sales and reputation, it hurts all other operators’ bottom line.

b) The onus is on head-office to have the processes and systems in place to ensure that standards are communicated, measured and followed-through.

This post is part of the “Retail Audit Best Practice” series.

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