Franchisers across the country are trying to get their franchisees to tap into a valuable resource: each other.
Owning a franchise brings challenges that other businesses don’t face—but it also comes with a support network other entrepreneurs don’t have. Franchisees can lean on peers who sell the same goods and services, deal with the same cost structure, customer base and vendors, and face the same rivals. It’s a chance to learn which strategies work and avoid costly mistakes.
For franchisers, building links between owners is a chance to strengthen their brands and foster a “we’re all family” attitude. So, companies of all sizes are urging their franchisees to help each other out. They’re holding conference calls and conventions, setting up mentoring programs and sending in veteran owners to help newcomers or struggling outlets.
Better communication can pay immediate dividends. A holiday gift card was such a sales booster for an Elements Therapeutic Massage franchisee that the entire company adopted it—and increased revenue by 85% in December 2009 from a year earlier, the company says. More.