Want to Level Up Franchise Operations? Start with Employee Engagement
Ideally, franchisors can provide franchisees with the tools to master operations from day one. But with labor shortages, rising costs, and compliance concerns, providing the proper support can feel like a tightrope walk. So, how do you help them build strong franchise operations with realistic solutions and without overstepping or jeopardizing compliance?
The key is focusing on what matters most: employee engagement. When franchisees have motivated, engaged teams, everything else — like smooth operations, better service, and growth — naturally follows. Plus, it improves the franchisor’s brand and reputation as a great employer, making attracting and retaining talent easier and strengthening franchise operations even more.
The Elephant in the Room: Joint-Employer Risk in a Franchise Business
Franchisees want and need support, especially in the early stages of their business. However, the joint-employer risk posed by the National Labor Relations Board’s (NLRB) new joint-employer standards doesn’t make this easy for any franchise business model. With 74% of franchise leaders worried about this issue, it’s clear that everyone needs to be careful about how a parent company offers help.
That’s why it’s so important to provide tools and resources that let franchisees manage their teams independently while still giving them the support they need to succeed.
Matching Franchise Operations Challenges with the Right Solutions
Supporting franchisees means understanding their headaches and giving them real solutions. Take unfilled job vacancies: 80% of franchisees struggle with this, which drags down daily operations and service quality. A possible fix? Team engagement platforms that help attract new hires while keeping the current team motivated.
Employee engagement is another big pain point. FBR’s Franchising at Work research showed that 17% more staff reported poor well-being in 2024 compared to 2023. This challenge directly impacts everything from staffing levels to customer satisfaction.
Franchisors can step in with advice and suggestions that simplify hiring, onboarding, and engagement. But instead of pushing specific tools, offer options in the franchise kit so franchisees can choose what works best for them.
In this context, there are two key things to keep in mind.
1. Straightforward Implementation, No Friction
Franchisors should recommend tools and strategies that are easy to roll out and don’t disrupt franchise operations. When signing a new franchise agreement, consider their day-to-day challenges. Are you adding value, or are you adding complexity?
- Focus on simplicity. Choose tools that require minimal setup and training.
- Leverage third-party solutions. Partner with vendors specializing in key areas and let them handle the heavy lifting.
- Avoid operational disruption. The sooner they can integrate a solution, the better.
A mindset of frictionless support improves franchise operations across your network, allowing franchisees to focus on what matters most: growing their business.
2. Value Without Direct Involvement
Given the increased scrutiny around joint-employer standards, franchisors must find ways to support franchisees without appearing to manage day-to-day operations. One of the best ways to achieve this is by offering recommendations or adding software to the franchisees tool kit to facilitate better management. Instead of prescribing exactly how franchisees should manage their teams, provide a toolkit of vetted, third-party solutions that they can use based on their specific operational needs.
- Offer resources, not directives. For example, you can recommend team engagement platforms and other tools to help them keep teams engaged without your direct oversight.
- Automate compliance. Look for solutions that offer compliance support as a built-in feature so you don’t have to step in and take on that responsibility.
This way, you empower franchisees to make the best decisions for their business while maintaining the integrity of their franchise operations.
Tools and Resources for Team Engagement and Increased Efficiency
Here are a few types of solutions that can help set them up for success and optimize their franchise operations:
Employee Engagement & Perks Platforms
Platforms like MustardHub can be a game-changer by providing a turnkey solution that helps franchisees keep their teams engaged, motivated, and loyal—all without crossing joint-employer boundaries.
How it helps:
- Franchisees can stand out in a competitive labor market by offering perks and engagement features that help attract and retain top talent.
- It’s easy to implement, making the process straightforward for franchisees without adding extra work.
- There’s no need for ongoing oversight, which allows franchisors to offer it as a resource without taking on additional risk.
Workflow Automation Tools
Workflow automation tools like Zapier can streamline routine tasks like scheduling, onboarding, and internal communication, freeing up franchisees to focus on strategic growth.
- Scheduling tools can automate shift management and reduce scheduling conflicts.
- Onboarding platforms ensure new hires are set up for success from day one.
- Internal communication tools, like Slack or Teams, simplify teamwork and keep everyone on the same page.
Data, the Glue that Strengthens Franchise Operations
The tools you recommend should go beyond solving immediate problems and bring long-term value. A significant, often overlooked benefit of tools used across the entire franchise network is the data they generate. With a solution like MustardHub, franchisors can access aggregated data on employee engagement, satisfaction, and productivity.
Imagine being able to track engagement data across your entire network. You spot a trend — engagement is dropping in certain regions, and turnover is rising. With that information, you could launch a network-wide initiative, like an employee recognition program, to turn things around. The result? Happier teams, lower turnover, and a more productive workforce. This kind of insight can be a game-changer for optimizing franchise operations.
Long-term, the data will give your whole franchise network a competitive edge. By identifying trends and making smart, data-driven decisions, you can support franchisees more effectively and show the value of being part of your franchise system. Ultimately, it’s a win for franchisees and franchisors.
A Strategic Approach to Franchise Operations Success
If you want to set your franchisees up for success, keep a few things in mind. The tools and resources you offer must be easy to roll out — they should make life easier, not harder. Keep things simple so you’re not adding any unnecessary hurdles for them. And don’t forget about the power of data: these insights can guide your business decisions to support individual franchisees and the entire franchise network.
This way, you’ll give franchisees the support they need while strengthening your whole system, turning challenges into opportunities for long-term growth.
Thank you to MustardHub for being a sponsor of the 2024 FBR Summit.
The ONLY Event Designed Just for Franchise Operations Teams
How can you make an immediate and lasting impact on your franchisees’ success? Find out at the FBR Summit, October 21-23 in Austin, TX. The Summit is an intensive, event created just for franchise operations leaders and their teams that directly support franchisees. Don’t miss it!
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