Tips For Great Franchising - Part 8

Franchize Consultants share more ways to build excellent franchises

Award-winning advisors Franchize Consultants launched their Franchising Best Practice 500 in 2018. Here’s a summary of seven more best practices to help franchisors accelerate results – find them in full at www.franchize.co.nz.

54. Field managers skilled in business planning

Experience suggests that many franchisees are resistant to the idea of business planning, perhaps because it takes time or they do not understand its potential to improve results. Developing the understanding and capability of field managers to help franchisees with proper business planning is an important success factor within any network.

55. Monitor comparable sales

Measuring and monitoring comparable sales matters because it indicates the effectiveness of established units, thereby setting standards for new unit openings and/or closures. Increasing comparable sales is a sign of business effectiveness; decreasing comparable sales is a sign of weakness, and may be an important warning signal. That’s why many companies, and investment analysts, rightly focus on this measurement as a critical KPI.

56. Monitor total franchise systemwide sales

Monitoring total franchise systemwide sales is a separate best practice from monitoring comparable sales, and is included here for completeness. It important to consider both metrics as important franchisor KPIs, as each offers important, but different insights.

57. Understand the franchisee perspective

A recent meeting with a franchisor highlighted the sometimes huge differences we see in the commitment of a franchise’s leadership to understanding the franchisee perspective. We believe it is best practice for a leader of a franchise system to be brave and upfront about understanding all insights. That means encouraging strong two-way communication, including regular independent surveys of franchisee satisfaction.

58. On-field visit focus

In today’s environment there are many opportunities for distraction, so field managers should turn off smart devices and alerts during any field visit. They should be fully-focused on the franchisee and their business unit: the franchisee cannot be allowed to feel second-best.

59. Local marketing expertise

Franchisors need to excel in local area marketing – good guidance can have a great impact on franchisee performance. Franchisees can be overwhelmed by choice, deviate from brand standards, underspend or just do it wrong. Through direct marketing staff and/or field managers, franchisors can provide strong leadership and local marketing expertise to really benefit franchisees and help grow the franchise overall.

60. Invest in specialist outside advice

Even small decisions can have a dramatic long-term impact for franchisors and franchisees alike. In an increasingly complex, dynamic and uncertain environment, fields of advice are becoming even more specialised. Best practice prospective and established franchisors will research and identify areas of outside advice that can add value and sustainability to their total system.

More detail

Dr Callum Floyd, managing director of Franchize Consultants, says, ‘Great franchises look for constant improvement to keep their own and their franchisees’ businesses at the top of their game. Go to our website to find more detail on each of these tips.’

Advertiser Info

Contact Dr Callum Floyd

P 0-9-523 3858 or M 021 669 519

callum@franchize.co.nz

www.franchize.co.nz

Callum Floyd