In franchising like most businesses there are multiple touchpoints to enable an organisation to achieve its goals. A clear strategy and plan, the right structure and people skills and relevant experience plus an engaging customer model and ways of working just to name a few. However, in the franchise industry one of the critical areas to support growth are your people(franchisees) which is key to success.
What is a franchisee?
‘A franchiseeis a small business owner that purchases the right to use an existing business’s trademarks, associated brands, and other proprietary knowledge. In addition to paying an annual franchising fee to the underlying company, the franchisee must also pay a portion of its profits to the franchisor. [Source: https://bit.ly/2DoNaGN]’
If you are considering franchising, you are a franchisee or franchisor looking to improve performance across your network. I’d like to share 3 business tips for you to create a solid plan in support of growth and success for your franchisee network:
Tip – Territory Inclusion
Map out the business achieve in a territory over a period that you are reviewing.
Match to activity and understand why your franchisees are not covering all of the territory (you could be missing out on great business opportunities).
Tip – Financials for Action
We are all busy building our businesses and practitioners most days. It’s key to understand how your turnover is made up so that you can make informed decisions.
Critical is to forecast to each year end and always compare with last year.
Tip – Go to Market plan
Once you have your budget, I would recommend that you create a solid plan and then work backwards.
The end result (backwards) requires action and activity map each step out with numbers or actions to understand what’s required
Example: End result in a month £10k turnover
Action: Marketing campaigns/staff numbers (achieve) > 20 prospects (achieve)> 10 Clients > (achieve)£1K each client – Objective or goal achieved.
I would also add into this plan your costs (budget) and time (to ensure you hit deadlines)
Action: Include 3 areas into your monthly & annual review with your franchisees:
What: Understand what has happened since I last reviewed by business
Positive do more of it, Negative – fix it
Why: Critical to understand why it happened
If you understand why or whom either positive or negative, you can fix i
When: When did the change happen in most cases you can pin point this i.e. It could it be seasonal dips in business and you can easily fix this by ramping up activity
How: How is the person/department working – it may be change has happened?
If you understand ‘how’ you can mitigate it happening again.
My experience has confirmed over and over again that the formula for growth in any business is focus on the right areas and be fully informed across all touch points.
Take action with mutual agreement and create a clear measure with communication at milestones check to prevent non-achievement of goals or underperformance of people.
Specifically, to a franchise business your network of franchisees is critical and it’s also important to ensure they have support and guidance at each stage. A Franchisees success is your success – Think of your franchisees as customers who are contributing to your turnover. Ensure you look after them and create a positive customer experience every day.
Great quote, ‘If you really look closely, most overnight successes took a long time.’ Steve Jobs
This blog article first appeared on the TFL Group Ltd website at www.tflgroup.co.uk