3 minute read
TIME FOR A FRANCHISE REVIEW?
Need a franchise health check? Dr Callum Floyd of Franchize Consultants asks some key questions
Technology, the labour market, customer preferences, the economy ... As John Payton of Dine Brands said at the recent IFA Convention I attended in Las Vegas, ‘Change is the biggest change. It is no longer linear, it is exponential.’
What does this change mean for New Zealand franchise systems today? It means that now, more than ever, franchisors need to be thinking about how they improve and adapt their leadership, systems and models for the long-term benefit of their franchisees and their own businesses.
At Franchize Consultants, we have helped many established, national franchise systems to do exactly that during our 34 years. We recognise that the needs and opportunities for franchises are individual to that company – there is not a one-size-fits-all approach or solution to improvement. However, there are some common questions that franchisors should ask themselves.
Do we have a genuine leadership focus on franchisee profit? Do we have access to timely franchisee key performance indicators, both financial and non-financial? Franchize Consultants helps companies make transitions to focus on meaningful outcomes with data to drive performance.
Are our royalty levels, group marketing fee and other fees optimal? Are they sufficient to fund necessary services and reflect changing revenue streams while still making a profit? Franchize Consultants helps companies to identify what is needed and plan a path forward.
Is our franchisee business model up-to-date? Is the original strategy that made our brand successful still appropriate? Often, there are numerous areas where the resources, marketing, sales, operational, technical, finance and admin model to be applied by franchisees need updating to reflect the changing environment. Franchize Consultants helps facilitate changes and improvements.
Are we proud of our franchise manuals? More importantly, are manuals up-to-date and comprehensive? Franchise manuals provide valuable direction and guidance to franchisees and their staff, and need to reflect legalities, compliance and the franchise agreement. Franchize Consultants helps companies review and update/rewrite manuals.
Are our field managers trusted business advisors to franchisees? Or is their focus more on sales development or compliance? Field management and field visits are too expensive and have too much potential value to be squandered. If field managers are not engaging with franchisees on profit and business planning, there is often considerable opportunity for improved results and relationships. Franchize Consultants helps with a range of consulting and training services.
If the answer to any of the above is ‘no,’ then you have potential opportunity for improved franchisee and franchisor results. For companies that seriously want to improve or stay at the top, we recommend a comprehensive franchise health check. The Franchize Consultants team would love to help –contact us to find out more.
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Franchize Consultants
Contact Dr Callum Floyd
P 0-9-523 3858 M 021 669 519
