8 Evidence-based Tips to Drive the ACE Mindset

The ACE Mindset is a concept FRI developed to measure the extent to which franchisees will Advocate a franchise opportunity to others, Commit to reinvest in their business, and Engage with network strategies and activities. Franchisees with the ACE Mindset are easier to work with and deliver better business results. Here are 8 tips for strengthening the ACE Mindset which were shared with franchisor executives at a recent FRANdata Summit.

#1: Strengthen the psychological leg. The franchise relationships stool has a legal, commercial, and psychological leg. Franchisors can strengthen the psychological leg by training their teams on how to manage conflict and how to build greater trust and commitment. Click here for a 2-minute summary on how to strengthen the psychological leg.

#2: Cultivate an optimistic culture. FRI's research has shown that optimism is the strongest driver of the ACE Mindset. Franchisors can strengthen this by fostering a sense of belonging and connection between people, helping franchisees identify and achieve meaningful goals, and reducing uncertainty during change.

#3: Support franchisees to reduce stress. Franchisors can normalise the pressures of running a small business by encouraging a growth mindset. They should also check on how their franchisees are coping and reinforce a supportive, caring culture. Click here for tips to nurture a growth mindset.

#4: Clarify and restate your network’s strategies. With so much uncertainty, many franchisees are feeling anxious and confused. Franchisors should regularly remind franchisees why important decisions are being made, and how their plans are aimed at the long-term protection of the network.

#5. Focus on protecting margins. Margin compression is a big challenge for most franchisees. Franchisors need to be constantly reviewing costs, pricing strategies, and productivity improvement tools to help franchisees preserve their margins.

# 6: Give people reasons to be proud. Brand passion is a significant driver of the ACE Mindset. So, remind franchisees about the good work you are all doing to improve the lives of customers, staff and local communities.

#7: Give franchisees a voice. One of the biggest complaints we constantly hear from franchisees is they don't feel listened to. In particular, multi-unit and longer-tenured franchisees expect to have a voice when it comes to important decisions.

#8. Strengthen field manager capabilities. Field managers can make a big difference in franchisee satisfaction and performance. FRI's research shows that field managers who are more competent in coaching and financial literacy skills have more satisfied franchisees.