Franchise Update Magazine Issue III, 2011 | Page 18

Grow Market Lead

Building a New
Management Team
And getting franchisees to buy in to change
By Carl T. Howard

W

hen I joined Fazoli’s as president and CEO
in 2008, the nearly 20-year-old QSR brand
was at a crossroads. Traffic and sales at the
once high-flying Italian concept were spiraling downward, with franchisees fleeing the system.
Today, Fazoli’s is in growth mode. We replaced cost-cutting
with innovation, overhauling the menu, adding limited table
service, and developing an all-new prototype. For the first time
in a decade, guest counts and sales are consistently positive.
Both the company and franchisees are opening new units.
Five Ways To Instill Confidence in Franchisees

Turning around an ailing brand requires a strong leadership
team capable of simultaneously driving change and winning
franchisee support.
1) Earn trust. With any business, at any stage, you need
a great leadership team if you are going to gain a competitive
advantage, grow market share, and build your business. With
franchisees, you must gain their trust and meet their performance expectations. This is even more critical in a franchise
system that has recently fallen on tough times. Franchisees

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are quick to blame the franchisor, and rightly so, for a brand
that is underperforming. They lose trust in the company’s
decision-making, which can create a dangerous spiral of brand
inconsistency.
2) Focus on innovation. Brands in almost every industry
must constantly evolve to keep pace with the changing consumer
and the hypercompetitive marketplace. You must consistently
focus on meaningful innovation and brand positioning. What
can you do to gain market share and position your brand to
last? This is what franchisees pay for—and expect—when they
send in their royalty checks. They expect the franchisor to set
the proper strategies so they can focus on running their business. Even when you are doing well, franchisees expect more
and are never satisfied. As a former franchisee, I understand
this. [