ESOPs: A Tool To Build a Thriving Franchise with Committed, Invested Employees

Remember when you first jumped into your franchise? Remember how optimistic you were about the future? There is something tangible about that hope. The visceral nature of hope drives us through tough days. It fuels us through long nights. Some of us look forward to the next deal, reaching that next sales hurdle and accomplishing a goal that has been just out of reach. For a scant few, money is the great driver. This article is probably not for you. A smaller group, still, are machines. It is the work, the grind, that drives you. This may not be for you either. For many of the franchisees I meet, it’s their people that drives them. The customers, the employees, their suppliers, and investors are their passion. They are driven by the joy of seeing their tide lift all the boats in their wake. This article is for you.

“HELP WANTED.” The most important and most cursed phrase of every franchisee. The Great Resignation, the tech boom, demographic shifts, and similar challenges have led to a difficult situation for those operating franchises.

Most franchisees we interact with aren’t losing sleep about keeping the sales clerk they hired last week or the person stocking shelves. We all are worried about our top talent. Good managers are hard to find. Managers who work hard, care for those they manage, and strive to improve their skills are rare. Losing these people can represent losing years of effort and expense on the part of the franchisee. These people are irreplaceable in the short term and, perhaps, in the long term. For some of us, these managers also represent relationships and, in some cases, friendships. If employees are just a means to an end, this article may not be useful to you. If you place value in the people who work for you, this article is for you.

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