As any good franchisor knows, a happy and engaged network of franchisees who feel supported and listened to is a franchise brand’s biggest asset. What form franchisee support takes will vary from franchise to franchise, and will vary from franchisee to franchisee too – the support and mentoring needed by an experienced franchise operator who has been running their business successfully for a number of years will necessarily be different to that offered to a fledging franchisee, or one who is experiencing some challenges within their business.
For many franchise brands, franchisee peer performance groups will form an integral part of their franchisee support systems. A franchisee peer performance group is a small mastermind group of franchisees who meet regularly to discuss all things related to their businesses, to share experiences, seek advice from each other and encourage each other to achieve their goals through goal setting and accountability.
For a franchisee peer performance group to be a valuable experience for the participating members, the size of the group needs to be large enough for shared wisdom and experience to be of worth, but not so large that there isn’t time to go into depth and for all members to be heard. A typical group size may be between three and six. In most cases, franchisors will assign members to groups based on common characteristics, whether that be location, operational similarities or stage of business journey. That will vary from brand to brand, but for a peer performance group to offer real value it is important for there to be sufficient of a mix within the group for it to be a valuable learning experience for all members, not just the newer franchisees.
How can a well structured franchisee peer performance group system boost a franchise brand?
It is a cost effective way of adding value to existing support systems
Setting up a peer performance group structure is relatively easy and inexpensive from the franchisor’s point of view but can be an invaluable additional level of support for the franchisee, providing a different perspective and complementary learning opportunities to the high level support offered by the franchisor’s operational team.
It can lead to improved franchisee performance
Having the opportunity to regularly engage with and learn from other franchisees can be incredibly motivating for franchisees at all stages of their journey. More mature operators who have been running their business for many years can benefit just as much as newer team members from a peer performance group, providing them with fresh energy, ideas and inspiration to take back into their businesses. The element of accountability within the group helps to keep franchisees moving forward and achieving their business goals.
It can result in the generation of new ideas to benefit the whole brand
Franchisee to franchisee discussions can lead to innovation within the whole business. Whether it’s problem solving within the peer group which can lead to solutions which can be adopted brand-wide, or the generation of new ideas which could benefit the whole franchise network, knowledge sharing within the group and the wider network can be of huge benefit to the franchisor and business as a whole.
It can have a positive impact on the franchise network culture
Being provided with a forum to openly communicate and network with with other franchisees can be incredibly beneficial for franchise business owners, both in terms of business development and also franchisee mindset. This can have a significant positive effect on the culture within the franchise network, as franchisees feel supported by the franchisor, less isolated and more engaged with their fellow franchisees, motivated, happier and consequently more loyal to the brand.
Setting up a franchisee peer performance group system can be done relatively easily, but it must be structured and facilitated correctly to ensure that everyone gains value from it and that it doesn’t risk losing momentum. Done well though, an effective peer performance system can reap great rewards for the franchisor, as well as the franchisee.
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