13 minute read
The Roles and Responsibilities of a Strong Franchise Relationship
ian Jensen-muir | ceo | BelgrAviA heAlTh & FiTNess
the roLes & resPonsiBiLities of a stronG franChise reLationshiP
no business, be it a franchise or a privately owned company, exists in a vacuum and nor is success frozen in time.
This was made very clear last year when the pandemic challenged businesses across the globe and we were all forced to innovate and respond very quickly to a rapidly changing situation in order to survive.
A successful launch is one thing, but to be successful long-term – to really build a franchise brand that lasts – requires constant review, work, commitment, courage and improvement. Time can work in your favour if you’re smart about it – it allows for strong relationships to be developed, brands to be fostered and innovation to thrive. Time can also work against you if you’re not careful and can see franchises negatively affected by competition, stagnation and drops in standards.
Whether you’re new to the franchise world or have many years under your belt, here are some of the key considerations for sustaining a franchise that not only lasts long-term but thrives. And remember, long-term success is the responsibility of both the franchisee and the franchisor, who can together create a partnership for a bright future.
evolve
The world around a franchise doesn’t stay the same, so nor can you. This is not about constantly changing your core offering or brand, it’s about carefully considered shifts that are in line with significant movements in client behaviors, needs and expectations that change over time. Influencing factors can include new industry trends, developments in science or technology and even changes to laws and major world events, which we all experienced first-hand during 2020. Much of this rests on the shoulders of the franchisor, but as a franchisee, once you get comfortable and your business is nicely established, it pays to look at how you can evolve your individual offering and add your own touches to add value and improve experiences for customers. Ensure you get the basics right first, however, before you turn your attention to evolution.
treasure your brand
Once your brand is established, it more than just a logo. With it comes core values and the cultural vibe of the company. Respecting it, protecting it and making key choices in line with it is the responsibility of both the franchisor and the franchisee. Your brand is a reflection of what you do, more so than
what you say. While the franchisor sets the ultimate vision, the franchisees are the key to the ultimate success of the brand, as they are there on the front line every day. They are the brand ambassadors! It’s important to have a collaborative approach and open lines of communication regarding marketing plans and strategies.
regularly review processes
There is no room in franchises for processes that don’t work and one of the biggest assets you have the longer you’re in business is a solid understanding of what works well and what doesn’t. The key is acting on this knowledge and ensuring that things that are no longer working are cut as quickly as possible. The longer you’ve been running, the more you’re in danger of becoming complacent and also falling into ‘group think’ patterns that reinforce inefficiencies in the business. To avoid this, reviews of processes and structures should be formal and scheduled regularly, at both a franchisor and franchisee level, with members of the business responsible for implementing and communicating the outcomes of those reviews.
trust and strong relationships
The relationship between franchisor and franchisee is an important part of long-term success. The franchisor needs to have strong integrity and build two-way communication with franchisees. For franchisees, trust in the prescribed operational systems is important, balanced with input and feedback to the franchisor based on ‘on the ground’ experience and local knowledge. A wellbalanced franchisor-franchisee relationship can greatly contribute to long-term growth. Relationships with suppliers are also crucial – strong relationships here help ensure reliable, smooth-running of the business and also allow for negotiating financial efficiencies that benefit the entire franchise network.
creativity
When both franchisor and franchisee embrace creativity the sky is the limit. This isn’t just about coming up with new product or service ideas, it’s about being able to approach problems in unique ways, think outside the box, see things from a different perspective (be that the franchisor seeing things from a franchisee’s perspective or the franchisee seeing things from a customer’s point of view). It’s also about being open-minded and flexible. Creativity can give franchises a serious edge over the competition, foster innovation, support evolution and drive growth.
clarity and commitment to roles
When a franchisee enters an agreement with a franchisor, both agree to commit to their respective roles. These roles should be clearly defined and both parties dedicated to adhering to them. These roles can differ from franchise to franchise, but as an example, the following aspects usually apply to each role description: The franchisor is responsible for: • providing franchisees with the tools, systems, materials, guidelines, training and support they need to succeed
• ensuring the smooth operation of the system and maintaining high quality standards
• watching and adapting to new technology, trends and customer needs
• maintaining a brand relevance and awareness.
The franchisee is responsible for:
• following the systems and training • maintaining high product/service quality standards and adhering to brand guidelines • being responsible for staff • reporting to the franchisor as required • participating in marketing campaigns.
consistency
It is the franchisor’s responsibility to ensure consistency in execution of each franchise and ensure brand standards and operational requirements are upheld and fit outs meet specifications, while also respecting a franchisee’s independence. On the flip side, it is the franchisees responsibility to respect the need for consistency and the important role it plays in the overall success of a franchise chain. It is this consistency that adds value not just to a single franchise but to the brand as a whole and every other franchisee. Consistency reinforces the strength of the brand in the customer’s eyes and is one of the most powerful attributes of the franchise business model.
Overall, it’s important to remember that franchises are a unique and powerful business model. If this uniqueness is properly embraced and respected at all levels, and all parties maintain a sense of cooperation and have an honest desire to see the entire system succeed, then it will - and long-term success is much more likely.
Ian is the CEO for Belgravia Health and Fitness, the largest collection of fitness/ health franchises in Australia. He has over 25 years’ experience in running businesses both in Australia and internationally. Belgravia Health and Fitness is a fitness franchise company with over 20 years’ experience in creating active, healthy communities. Its portfolio includes Genesis Health + Fitness, Coaching Zone Group Personal Training, JUMP! Swim Schools, Belgravia Kids and Ninja Parc Indoor Obstacle Courses. www.belgraviahealth.com.au
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COVER STORY: Banjo’s Bakery
PROOF IS IN THE PIE FOR BANJO’S BAKERY CAFÉ
Jessica Saxby grew up in Banjo’s Bakery Café stores. A family business that began in Hobart in 1984, Jessica was hungry to learn the recipe for success.
Now Chief Executive Officer of this wellloved nation-wide brand, Jessica shares her story with Business Franchise magazine.
Jessica, tell us about your path from helping out in the family bakery as a teenager to running a national brand.
My working career with Banjo’s started in the original Hobart store as a sales assistant at age 13. I was able to work my way up to sales manager before I made the leap into a HR Support role in Head Office, while I undertook a Bachelor of Commerce at University of Tasmania (majoring in HR, Marketing & International Business). In 2006, I took on my own venture, LivEat Sandwich Bars, while I was still at university, using my real-world knowledge of the business with my home-grown skills in the food, hospitality, and retail industries. In 2009, I was appointed as a Director on the Board of Banjo’s Corporation – and by age 27, I was appointed as CEO and Managing Director in the fast-growing family business. It was an exciting time to join Banjo’s, as we were ready to refresh the brand. is gave me the opportunity to hit the ground running, converting 90 percent of the network to the new look and feel, resulting in sales growth of 20 percent. We have also joined other market leaders in embracing technology with the introduction of click and collect and third-party sales channels. We have streamlined numerous I love that our approach to baking brings back the nostalgic element of food – it’s all about enjoyment, friends and family served alongside friendly customer service. Bakeries have always been synonymous with freshly made products, local communities and a sense of wholesomeness. When Banjo’s opened their doors, the business concept was unique and still is today, providing a place which offered customers the opportunity to sit down and enjoy freshly baked savouries and cakes or handmade treats for breakfast, lunch or snacks with perfectly made barista coffee. Although times have changed, we differentiate ourselves from our competitors through our approach to baking fresh product daily. Whatever we’re unable to sell during the day is donated to local charities, individual to each store and region, totaling $11 million per year across the business. is is just one way Banjo’s contribute to our local communities.
12 Business Franchise Australia and New Zealand
business processes moving from paperbased recipe books to our own recipe app and digitizing key business procedures like auditing, compliance, and customer feedback. It has been an incredible experience being involved in the business from a young age, watching one store grow to 44 and counting across Australia.
What is the Banjo’s brand all about? What makes you unique?
At Banjo’s, our main product offerings are freshly baked goods and coffee. We pride ourselves on developing product lines that encompass fresh ingredients traditionally loved by Australians. Sometimes these products have a twist to surprise and delight our customers, like our Signature Pie range which includes Lasagne, Chicken Parmi and Double Cheeseburger Pies. However, we also continue to offer fan-favourites such as Sausage Rolls, French Vanilla Slice, House Cakes and Danishes. Banjo’s breads are preservative free and our products are baked fresh on-site daily at each of our stores. “We always look to work with people who align with our organisation’s values and goals. Communications and relationships between customers and our community are at the core of everything we do.”
Where are your current locations/ territories? Are you looking to expand?
We currently have 44 locations across the country in Tasmania, Queensland, Victoria, South Australia and New South Wales. e next phase of our business growth strategy involves an expansion plan outside of Tasmania with territories available on the Gold Coast, Sunshine Coast, in Brisbane, Dalby, Ipswich and Mackay in Queensland. In Victoria, our key growth areas are Melbourne, Altona, Sebastopol, Stawell, Truganina and Warragul. New South Wales has availability in Sydney, Forbes, Narradarra and Tamworth.
We’re working towards expanding our network in both regional and metro areas with high traffic and near new and developing digital media and localised marketing, operational set-up and staff training. e support we provide continues in dayto-day operations to ensure each of our franchisees are set up for success by providing ongoing sales and baking training and business mentoring.
infrastructure, centres and housing locations. Our team are always looking for prime locations across the country – get in touch via our website if you’d like to learn more or apply as a franchisee. Have you celebrated any particular achievements in the past 12 months? What’s in store for the future?
VOL 15 ISSUE 05 JUL/AUG 2021
What type of person makes an ideal Banjo’s franchisee?
We always look to work with people who align with our organisation’s values and goals. Communications and relationships between customers and our community are at the core of everything we do. Our franchisees are passionate about baking and people, they are outgoing, have a great attention to detail and always put their team first. How do you look after your franchisees? I am a big believer in fostering talent from within. We have a number of programs for our staff throughout their career progression at Banjo’s Bakery Café. One of the key opportunities for our team is the Self Raising Program, which mentors current Banjo’s team members who wish to climb the ranks through their career with us. Selected employees receive full training in baking, sales, administration, and business ownership through courses. e Banjo’s Resource Centre also supports the team member in finding a site for their new franchise, helping with location selection, fit out and leasing. I’m proud of the fact that over 60 percent of our stores are owned by Self Raising Program graduates. We are only as good as our team. erefore, it’s about supplying the tools for success through every stage of the process. is includes assistance in recruitment, marketing and business strategy, assets for advertising,
ere have been so many incredible achievements for the Banjo’s team over the last 12 months. We opened our first new drivethru store in Queensland when COVID-19 hit and followed that with another three during the height of the pandemic. e drivethru bakeries have sustained double digit growth across the network since opening in early 2020. PROOF IS IN THE PIE FOR e team have also launched two new Signature Pie flavours including the Bangers and Mash and Lasagne Pies – both a huge success nationwide and receiving international recognition. We have developed and launched our own Mobile App for online ordering and customer loyalty which is growing 30 percent month on month – the first for a bakery chain BANJO’S BAKERY CAFE in Australia – and raised almost $60k for our primary Charity, SPEAK UP! Stay ChatTY for suicide prevention. e last 12 months have seen us partner with online ordering aggregators to diversify our sales channels as markets are driven towards more convenient and efficient methods of food ordering and delivery. Moving forward, we are very excited to further expand the Banjo’s brand across Australia with over 50 drive-thrus slated to open in the next three to five years. Meanwhile we will continue to implement strategies and techniques that modernise our approach to business without losing touch of our family values and baked good offering.
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