Finding a Balance between Proven Systems and Creativity

There must be room for franchisees to express their individual needs and work with the franchisor within that system.

By Roberto Ortega

There have been many accomplishments since my wife and I took our vision for a progressive early childhood learning center and turned it into the established growing franchise it is today. Opening the first KLA School was our biggest win but we also consider the way that the company works together with its growing system of franchisees to be another point of pride.

From the beginning, KLA Schools sought to establish two consistent principles as our business grew; these tenets were to build a business that could stand the test of time and to establish an environment that encouraged creative freedom from the classroom to the franchisees and investment partners.

Our goal was to establish open and honest discourse with our system and permit creativity within each location that would serve to enhance the brand. Finding the balance between consistency and freedom can be a thin line for any franchisor; however it was one that we are determined to allow to grow and evolve alongside the brand.

Build Smarter from the Start

A franchisor must strive for so much more than just setting up a system. For any franchisor, having a solid system in place can be difficult because of the wide range of variables affecting any franchise at any time. There is a lot of take into consideration.

Instead, it must be established over time and be implemented in such a way that encourages flexibility over intransigence. To use a metaphor, “the franchisor is not pitching a tent but rather providing the essential guidelines to building a stable structure.”

When potential investors can easily identify the support systems that are holding the structure together, the room for freedom and creativity within that support structure is more easily achieved. Consistency does not mean rigidity. No matter the size of the franchise, there must be room for franchisees to express their individual needs and work with the franchisor within that system.

Within the franchise leadership, it’s crucial to take the time to construct and fine-tune the business model in order to promise a balance between freedom within the system and best practices for a thriving brand. By studying the industry as a new franchisor, I saw that those franchisors that allowed too much freedom, without having the right tools and resources available to their franchisees, ran the risk of becoming too inconsistent from one franchise to the next. That inconsistency resulted in instability and made it that much more difficult to implement that structure further down the road.

When built correctly from the beginning, every new location will only serve to strengthen the franchisor and its current franchisees. With KLA Schools, we added a bathroom in each classroom to establish a smoother system for the teachers and students after monitoring operations of our first establishment.

Balance Creativity with Business Acumen

A franchisor provides the blueprint for others to build a promising home. A brand that wants the franchisees to be truly happy with the investment will create a system that allows them to spruce up the home to reflect their needs. For the average franchise system, this can be challenging because many see the franchise model as a business in a box, the rules and guidelines should be followed to a “T” in order to generate the same success as the others.

Finding a unique balance between recreating a proven system and allowing franchisees their creative freedom is best accomplished by establishing an open communication channel between the franchisor and its franchisees. By discussing thoroughly and informing the franchisee of what the vision is for the future of the franchise, the franchisee can see how they can adapt that model to suit their needs and ensure their individual success.

The open forum will allow creative ideas and business solutions to flourish. For instance, a new franchisee sought to enhance certain areas of the school layout to suit the community’s needs. We worked with the franchisee to develop a larger and more centralized piazza, a gathering spot for children that creates an open community space. This feature is unique to the franchisee’s location, while still adhering to the system we have established as the franchisor.

Establish a System of Checks and Balances

How can a franchisor allow creative input from franchisees without sacrificing the vision for the brand? This was the challenge my company faced as we worked together with our franchisees to make a mutually beneficial process for operational practices. The franchisor must be able to discern what is best for the individual franchisee and the whole system.

One way to go about this is to keep your franchisees accountable by setting up a system of checks and balances. Communication is vital in balancing freedom and structure within a system and should be approached as a two-way street. This will allow the franchisor to have a clear understanding of what is working and what is not, what needs to change and what needs to be improved.

When a brand achieves a consistent growth level, developing a franchise advisory council can help with further checks and balances. The advisory council is an effective tool for communication among the entire franchise system, keeping everyone accountable and serving as the funnel through which best practices on the franchisee-level can be heard by the franchisor.

It would be a shame to see a small franchise that allowed creative freedom in the beginning to diminish its founding principles just because of growth. With expansion, there are more people to contact before receiving an answer, but an advisory council expedites communications by providing responsive feedback for the franchisees to still be heard.

Overall, a successful franchise is built upon a solid foundation that can withstand expansion of the brand. A franchisor needs to build strategically from the start with strong communication as franchisees are finding creative freedom within the brand’s structure. A franchisor should be comfortable coloring outside the lines of his business model — especially if the franchisor values creativity and the expertise of its franchisees.

By creating an open and responsive communication channel, the franchise can balance creativity with a strategic business approach. The most lucrative advice a franchisor should strongly consider is being open to change. Throughout the evolution of the business, there will always be room for improvement — the key as a franchisor is finding a balanced approach.   

Roberto Ortega is the CEO and co-founder of KLA Schools. Find him at fransocial.franchise.org.