Franchise Update Magazine Issue I, 2012 | Page 19

Switch Hitters “You have to invest in the success of others. I consider our franchisees to be our partners.” —John Metz lot of other franchisees who didn’t have that waiver and lost everything,” he says today. “It didn’t affect me financially, but I thought it was a travesty—kicking some good people when they were down.” Based on that experience, as well as that of being a franchisee for multiple brands, Metz is convinced he can do things better as a franchisor—a lot better. “I felt there needed to be more disclosure and cooperation between the franchisee and the franchisor, which is exactly how we do it now,” he says. Still a franchisee of several hotel brands as well as 36 Denny’s and a Dairy Queen, Metz says he’s been called a “rogue” franchisee over the years because he has “pushed the envelope” on what franchisors were doing to support him as a franchisee. “But I did it within the system,” he says with a grin. Today, as a franchisor, he is well-pre- Mutual Respect Jim Rudolph, vice chair and minority owner of Rita’s Water Ice Franchise Company (about 550 franchise locations in 18 states), says that although franchisee interests must be a priority for a franchisor, the franchisor’s role must be respected. “When I was a franchisee, there was no way I was going to pay the royalties and then not listen to my franchisor,” says the former franchisee of Wendy’s, Chuck E. Cheese’s, and other brands. “Yes, I wanted to go beyond that—to be even better—but I always did it within the boundaries of what my agreement required.” For Rudolph, the “zeezor” relationship boils down to three essentials. “I say it all the time: it’s about trust, respect, and belief. And it has to go both ways—100 percent. If we can do that together, we’ll have a great relationship.” pared to deal with any future rogues of his own, but he has bigger things in mind as he works to fine-tune and rebuild a brand. Metz brings a canny insider’s knowledge of what it takes to implement change in a system—especially when there’s a price tag attached. For example, he took an innovative approach to making system-wide menu changes at Hurricane Grill & Wings. “Instead of sending a memo to everybody to buy this and that, we sent out the equipment they would need. We want to be consistent, and it’s hard for anyone to refuse to conform when someone is sending you the piece of equipment you need to do it,” he says. Then there’s the big picture: money. “The fact that I never could grasp was that I, as a franchisee, had more money invested in the company than anybody at corporate. There were bureaucrats and corporate executives making decisions based on the benefit to the franchisor—not on how it affected the bottom line and the franchisees,” he says. “As a franchisor, you have to keep all your stakeholders in mind—your owners, employees, franchisees, and suppliers. You have to invest in the success of others. I consider our franchisees to be our partners. If they have financial difficulties, we try to solve the problem. If we can’t, we grant royalty relief for underperforming franchisees. It’s the right thing to do.” n Franchiseupdate I ssue I , 2012  17