Whether or not franchisors wish to be considered joint employers alongside their franchisees is a topic that’s gaining an increasing amount of attention of late. The implications of such a decisive move on the part of the NLRB and potentially beyond could have far-reaching and even unanticipated effects on franchising.
Nonetheless, franchisors may wish to have their voices heard more often when evaluating franchisee decisions and how locations are being managed. Recent results from a survey conducted by Yodle sheds light on how some franchise leaders in service-based sectors would like to change their relationships with franchisees.
Yodle has five regional offices, all in different major cities and states, where it serves over 200 brands nationwide as well as 45K+ client locations with comprehensive online marketing support to build and retain customers. This survey, dubbed the Franchisor Pulse Survey is focused on the views of senior marketing leaders and some of the often indicated challenges they face in dealing with franchisee marketing and operations plans.
One interesting finding according to respondents of the survey was that nearly half found challenges in meeting objectives to be linked with the failure of franchisees to follow best practice protocols. Apprehension regarding this particular challenge was mentioned in the survey’s section concerning principal goals for the year ahead. This indicates the weight of franchisee decisions and the desire on the part of franchisors to somehow streamline those decisions with methods approved by the franchise system.
The survey also found that 70% of respondents have some influence on how franchisees approach marketing and operations decisions but that they would like to have more. Key areas that stood out in the eyes of respondents largely included how spending is handled in the area of advertising at 76% followed by the brand/messaging category at 70%.
In terms of spending on a local level, 6% of respondents indicated that they have a program to work with that makes it easier to help individual franchisees adopt recommended marketing investment strategies. This small number highlights the difficulty that many franchisors face when attempting to better influence and understand how franchisees are handling marketing spending.
As the relationship between franchisor and franchisee remains complex in day to day operation, it is worth considering just what franchise businesses stand to gain through obtaining a greater level of influence concerning how franchisees handle marketing and operations. Likewise, evaluating how a greater level of franchisor influence could interfere with franchisee satisfaction would be critical (an area which respondents considered to be of high importance, with 77% viewing improved franchisee satisfaction as a #1 goal for the coming year).
To find out more about Yodle and this recent survey, click here.