CFB Recap: Improve Your Communication, Process, and Ability in Franchising

Written by Kourtney Kopp on December 19, 2023

At our 2023 FBCE, Sabrina Wall and Wanda Heredia hosted an enlightening session titled "Black Holes in Zor/Broker Success,” kicking off with the thought-provoking question, "What do you think the cost of misalignment in the franchise award process is?"

As part of FBA's commitment to elevate industry standards, this CFB course explored the complexities and high stakes involved in franchise transactions, and how misalignment can cause significant revenue leaks. This is akin to holes in a bucket.

This article aims to provide a recap of the key points of the course, offering insights into the common pitfalls and strategies to enhance alignment in your franchise process.

For an additional resource and more information on Radical Candor, members are encouraged to log into FBAMembers.com and visit this link: https://fbamembers.com/resources-center/cfb-black-holes-in-zor-broker-success/

Misalignment with Communication

Miscommunication between franchisors, vrokers, and candidates can lead to significant issues:

• Case Study 1 - "Is Your Buyer a Liar?" After a missed appointment, a franchisor's email questioning the candidate's integrity created tension and misunderstanding.
• Case Study 2 - "Oops, the Territory is Gone!" A franchisor allowed an existing franchisee to buy a territory under negotiation without informing the broker, blindsiding the candidate and causing frustration.
• Case Study 3 - "I Just Forgot!" Despite requests, a franchisor regularly excluded the broker from discovery calls, leading to miscommunication and ultimately, the loss of a potential franchise sale.

Misalignment with Processes

The lack of coordination among the different processes of candidates, franchisors, and brokers often leads to challenges:

• Case Study 1 - "After the First Call" Misunderstandings about the readiness of a candidate to proceed led to combative exchanges between a broker and franchisor, stemming from unclear communication about the franchise buying process.
• Case Study 2 - "Who’s Managing This?" A situation where the broker had to manage both the candidate and the unresponsive franchisor, questioning the management of the deal.
• Case Study 3 - "FSO That’s So Fast" A franchise’s focus on speed led to shortcuts like monitored webinars instead of private validation calls, raising risks and concerns about the process.

Misalignment with Confidence and Ability

Lack of confidence and ability in various areas can significantly hinder the franchise award process:

• Brand, Brand Rep, and Financial Opportunity: A candidate’s lack of confidence in these areas can lead to hesitation or withdrawal.
• Zor’s Confidence in Candidates and Brokers: A franchisor's doubt in a broker's or candidate's capabilities can stifle the process.
• Brokers’ Confidence in Brand, Brand Rep, and Process: A broker’s skepticism about the brand or its representatives impacts the efficiency and success of the process.

In a study by Researchscape reveals that almost half of workers believe projects fail to meet objectives due to alignment issues, with similar levels of frustration resulting from such misalignment.

In the franchise sales process, misalignment of any kind can lead to annoyance, frustration, and failed deals. This CFB session encouraged attendees to identify and discuss their experiences with misalignment, aiming to find collaborative solutions.

Let’s Look at Alignment Solutions

Now here are several strategies and practices to enhance alignment, bridge gaps, and foster successful relationships between franchisors, brokers, and candidates.

Alignment with Communications: Embracing Radical Candor in Franchising

In the quest to address the black holes in Zor/Broker success, a crucial aspect is realigning communication strategies. The session highlighted the concept of "Radical Candor," a transformative approach to communication and feedback, as a key solution. This concept, derived from Kim Scott's influential book and management training, emphasizes the importance of direct yet empathetic communication in leadership, particularly in high-stakes environments like franchising.

Introducing Radical Candor in Franchise Operations

Radical Candor is about caring personally while challenging directly, a balance crucial in the franchise award process. However, you can categorize communication and feedback into four quadrants, each representing a different style and its impact on success. These are:

• Ruinous Empathy: This style involves being overly nice, avoiding confrontation, and failing to provide honest feedback. It may seem benign but can lead to miscommunication and hinder growth.
• Manipulative Insincerity: Characterized by passive-aggressive behavior, backstabbing, and politicking, this style erodes trust and transparency, crucial elements in franchising relationships.
• Obnoxious Aggression: This quadrant includes arrogance, bullying, and ego-driven behavior. It creates a hostile environment, discouraging open communication and collaboration.
• Radical Candor: This ideal quadrant involves caring personally for others while also challenging them directly. It encourages asking for and giving constructive criticism, offering specific and sincere praise, and adapting communication based on feedback.

For a moment, reflect on which communication style you resonate most with.

Applying Radical Candor in Franchising

In the franchise award process, striving for Radical Candor is essential. This approach avoids the pitfalls of the other quadrants.

Radical Candor promotes clarity, authenticity, and mutual growth. It fosters an environment where feedback is a tool for development, aligning the interests and actions of franchisors, brokers, and candidates. This is how you plug communication holes in your bucket. 

Alignment with Processes: Strengthening the Framework for Success

One of the pivotal areas identified in this CFB was the alignment of processes. In franchising, well-defined and understood processes are vital to avoid miscommunication and inefficiencies, which can lead to revenue losses and many holes.

Understanding and Defining Franchise Processes

The industry often suffers from a lack of clearly defined processes. FBA underscores the importance of documentation with a mantra: "If it's not in HubSpot - it didn’t happen." This principle highlights the necessity of written processes for clarity and adherence. Without documentation, processes are prone to misinterpretation and non-compliance.

Common Pitfalls in Franchise Processes

Several issues often plague franchise processes:

• Loose Processes: A lack of structure often results in confusion and failure. Without clear guidelines, participants in the process are left unsure of their roles and responsibilities.
• Undefined Timing: Processes lacking specific timelines result in low urgency and accountability, slowing down the entire operation.
• Poor Communication of Processes: When only a limited number of individuals are aware of the process, it creates knowledge gaps, leading to inconsistencies and errors.

The Role of Brokers in Process Alignment

Brokers can play a crucial role in enhancing process alignment by:

• Providing radically candid feedback to franchisors regarding process issues.
• Requesting written processes and collaborating with franchisors to review and refine them.
• Facilitating communication and coordination to ensure all parties are aligned and moving forward together.

Alignment with Confidence and Ability: The Path to Organizational Success

Achieving alignment in confidence and ability within the franchise environment is transformative. This segment of the CFB emphasized how aligning strategy, goals, and purpose within an organization can lead to remarkable efficiency and profitability.

The Impact of Alignment on Organizational Performance

The power of alignment in confidence and ability is evident in its impact on organizational performance:

• According to LSA Global research, highly aligned organizations experience a 58% faster increase in revenue and are 72% more profitable compared to their unaligned counterparts.
• This statistic illustrates the immense potential that lies in moving beyond limitations and stepping into the full potential of alignment.

Plug the Holes in Your Bucket

When an organization achieves true alignment, where its strategy, goals, and meaningful purpose are in sync, it gains a significant advantage. This clarity of direction allows people within the organization to move confidently in the right direction, reducing the need for constant decision-making and allowing more focus on action and execution.

Implications for Franchisors and Brokers

For franchisors and brokers, this alignment translates to:

• Enhanced understanding and agreement on mutual goals and expectations.
• Improved trust and confidence in each other's capabilities and intentions.
• A more cohesive approach to the franchise award process, leading to better outcomes for all parties involved.

So, the takeaways. Embracing Radical Candor can revolutionize our interactions, fostering honesty and empathy crucial for trust-building. Streamlining processes ensures clarity and efficiency, essential for successful franchise operations. By applying these strategies, franchise brokers and franchisors can enhance their operations, leading to more successful outcomes and contributing to the overall prosperity of the franchising industry. We can continue being GOOD.

To learn more visit this link: https://fbamembers.com/resources-center/cfb-black-holes-in-zor-broker-success/

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