Global Franchise 9.1

INS IGHT n an era defined by unprecedented uncertainty, the need for businesses to cultivate resilience against a myriad of threats has never been more pressing. From the insidious menace of cyber attacks to the capricious whims of economic downturns, environmental catastrophes and global pandemics, the landscape of risk to businesses is vast and varied. Add to this the spectre of war, along with disruptive upheavals wrought by emerging competitors, and the need for organizations to fortify themselves against future shocks is underscored in red. The ability to anticipate, adapt, and withstand adversities in a dynamic and unpredictable landscape is paramount if franchises are to thrive. Resilience has emerged as a cornerstone of organizational survival and success, with the most successful businesses being those that have not merely weathered storms, but thrived in the face of turbulence You don’t have to delve too deep into the franchising sector to find shining examples of resilience in action. Drawing from battle-tested wisdom and insights of a cross-section of franchise leaders, we explore the strategies, principles and philosophies that underpin successful brands, from robust crisis communications to entrepreneurial acumen and foresight. Learn from experience Ray Titus, founder and CEO of United Franchise Group, has been through it all – pandemic, wars, recession and every crisis in between – and come out stronger the other side. “Good times are always the best time to prepare for the worst,” is his advice, a lesson he’s learned through decades of experience. With over 1600 franchisees in more than 60 countries business is booming, but in 2008 the worldwide financial crisis delivered a hard knock to Signarama, one of UFG’s flagship brands. The recession of 2008/2009 was the worst in our 38 years of business,” said Ray. “It seemed like it was never going to get back to normal times. I learned so much during that period.” Signarama's eventual bounce-back was testament to its ability to divert strategy and respond quickly to opportunities presented, but it required proactive teamwork and agile leadership. “We focused on working with the companies that were willing to spend money,” Titus explained. “They are easy to spot on billboards and TV commercials. We looked for the ‘silver linings’ and promoted the success stories to our team to boost morale and we facilitated any good ideas out to the system. And, importantly, we helped our key customers through it all, so they would remember and stay with us.” The crisis shaped the franchise’s approach to risk management and contingency planning, which has further evolved since experiencing major crises like the pandemic. “The biggest key is to save money when times are good,” continued Titus. “We have a strong saving plan each year and implemented Profit First from Mike Michalowicz. The answer is to work with and train I owners to be prepared for down times. We must lead by example, spend our resources wisely and save for bad times. We never know what’s next, but we need to constantly question today and prepare the best we can for tomorrow.” For Titus, the secret to surviving curveballs and thriving in a volatile business world hinges on both market need and open-minded leadership. “Have a great business that people need and listen to the franchise owners, he advises. You must always be brand building and looking at ways to connect with the owners and if you make a mistake, admit it and own it, then correct it and move forward.” “The biggest key is to save money when times are good” 64 GLOBAL FRANCHISE | ISSUE 9.1 Navigating through uncertainty Franchises often seem to sail through turbulent storms, but what’s the secret to their resilience? We put the question over to industry leaders