change and conflict in franchising and the impact of disruptive business models
DESCRIPTION
Robin La Pere of No Ordinary Franchise Consultants explores the impact of disruptive business models on conflict in franchising, and asks the questions: Is conflict inevitable in franchising? Is it necessarily a bad thing? Is conflict reduced where franchising is legislated? And what can franchisors do to protect themselves from disruptive business models and protect their strategic health? (Introducing the world's first Business Model Canvas for Franchisors.)TRANSCRIPT
CHANGE AND CONFLICT IN FRANCHISING
The impact of DISRUPTIVE BUSINESS MODELS ON CONFLICT IN FRANCHISING
The impact of DISRUPTIVE BUSINESS MODELS ON CONFLICT IN FRANCHISING
• Is conflict inevitable in franchising?
• Is conflict reduced where franchising is legislated?
• Is conflict always a bad thing?
• Are disruptive business models becoming the norm?
• What can you do to keep your business model fresh and relevant?
Is CONFLICT Inevitable in FRANCHISING?
Tensions 1. The economics
of franchising
Tensions 1. The economics
of franchising
Tensions 1. The economics
of franchising
Tensions 2. Compliance vs
entrepreneurialism
Tensions 2. Compliance vs
entrepreneurialism
Why can’t franchisees follow
the system?
Tensions 2. Compliance vs
entrepreneurialism
Why can’t franchisees follow
the system?
Why can’t franchisees use their initiative and sell more?
Tensions 3. Different
expectations
Tensions 3. Different
expectations
I did it myself.
Tensions 3. Different
expectations
I did it myself.
It was the franchisor’s fault.
Tensions 4. Franchisee
selection compromises
Tensions 4. Franchisee
selection compromises
The key to managing tension is to find the right balance
But pressure points can get in the way
Compiled from: Towards Conflict Resolution Australian Survey 2009 (Griffith University), and Franchising Australia Survey 2010 (Griffith University)
is conflict reduced where franchising is legislated
?
In New Zealand, where franchising is not regulated, conflict has been reported by about 1 in 5 franchisors
Franchising New Zealand Survey 2013 Massey University, Auckland, New Zealand
In Australia, where franchising is regulated, conflict has been reported by about 1 in 5 franchisors
Franchising Australia Survey 2013 Griffith University, Brisbane, Australia
What’s the difference ?
What do all these people have in common?
Are disruptive business models becoming the norm?
Franchising eCommerce
eCommerce has just caught up to Franchising. Each has total sales of around $1 trillion, but eCommerce took way less time to get there.
Case study disruptive business model
Gym franchise No contracts, low weekly fees, open 24/7
Requires 5 – 10 hours of franchisee’s time p.w.
High ROI
Strong capital gain
Fast growing franchise
How do you avoid being the guy on the left ?
How do you avoid being the guy on the left ?
1. Your whole business under attack
2. Conflict from your franchisees
Best practice in franchising
Best practice in franchising
1. Strong organisational culture
2. Strategic health
Strong organisational culture
• Immense respect for franchisees
• Commitment to their success
• Focus on mutual gain and interdependence
• Vibrancy and enthusiasm in relationships with franchisees
Strategic health
• Clear and relevant Business Model – that is, understanding of the franchise’s key value drivers
• Clear understanding of how your Business Model drives value in your franchisees’ businesses
• Understanding that a Business Model is not the same as a Business Plan
How can you protect your strategic health ?
the business model canvas
the business model canvas
Business Model Generation
by Alexander Osterwalder, Yves Pigneur
the business model canvas
Business Model Canvas for Franchisors
www.noordinary.co.nz
