Power to the franchisee

On returning from a recent holiday, among the heap of unsolicited mail awaiting me was a colourful brochure promoting an extraordinary assortment of allegedly "designer" merchandise, none of which I need nor am conceivably able to afford. There was not the least indication of value for money or justification for the astronomical prices quoted, which were sufficiently fanciful as to have been taken from the Alice in Wonderland telephone directory, with a pound sign added along with a few extra noughts for good measure.  

Though not usually a betting man, I have engaged in a private wager (with winnings going to a charity) that this decidedly chancy venture will not survive tightening economic conditions. Conversely, one of my local supermarkets, hitherto seen to have particular appeal to those in the lower income brackets, has now attracted to its car park an increasing number of prestige executive models, 4x4s (and even my worthy British-built Toyota) whose owners have suddenly recognised that a combination of quality and value is well worth having. Accordingly, they are trading well, with reports of good financial performance and - always a tangibly positive sign - the necessity of extending the car park.  

So far as I am aware, neither of these businesses is remotely connected with franchising; but their diametrically opposed trading policies provide lessons which everyone in business would to well to consider. In the UK, we have enjoyed many years of economic growth and a healthy environment in which many businesses are seen to have thrived. Maybe some have not had to try too hard and it could be argued that there are a few which have become fat, comfortable and complacent in the process. 

The latter currently face the greatest challenge. I continue not to subscribe to the view that the economic problems we are facing amount to a crisis, although undeniably the economy is tightening noticeably. In consequence we are seeing a fundamental shift in purchasing attitudes in both the consumer and business-to-business sectors, with decisions to buy goods and services being subject to more cautious consideration and careful evaluation of price, quality and service. So how does all this impact upon franchising? Considerably, I believe, and not without some positive implications.

The maxim, "look upon a problem as an opportunity", comes to mind and although it might be regarded as something of a cliché, is nonetheless a pertinent message in the present climate. Nowadays the franchise industry makes a substantial contribution to the UK economy, to the tune of £12.4 billion annually, much of which relates to small businesses that are owned and managed at local level by the proprietor.

History shows that when times get harder, large companies tend soon to get the wind up and start rationalising, downsizing, closing outlets and other negative (and often hasty) initiatives, with decisions being often made remotely, from a distant country even. On the other hand, a franchisee is far more in control of the destiny of his or her business and, with the additional benefit of franchisor support, is in a better position to react to local market conditions and implement new initiatives aimed at stimulating turnover and profitability. 

It has become even more important, therefore, for franchisees to take advantage of their position by letting their customers and prospective customers know who they are, and that they are not company managers but business owners who are totally committed to delivering customer satisfaction.

To bring this into context: recently the bell rang at my home and standing at the door was a gentleman asking if he could be of service. From his apparel and the distinctive branding on his vehicle, I immediately recognised a well-known national brand and he went on to introduce himself as the local franchisee. He explained that he had just completed a job for one of our neighbours and, following best practice, was taking the opportunity to make himself known to other householders in the vicinity. He went on to explain very clearly what he could do for us and at what cost, and subsequently my wife (who is responsible for all domestic matters) asked him to go ahead. He duly carried out the work promptly and most efficiently, and can now look upon us as regular customers. Interestingly, although he was relatively newly established and had no previous experience, his knowledge and expertise was impressive and obviously instilled great confidence in customers, providing him with a healthy order book.  

A point worth mentioning is that while there are other firms in the district offering precisely the same services, they had not had sufficient enterprise to make themselves known and therefore didn't get the order. Power to the franchisee, I say.