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FRANCHISE BUSINESS CONSULTING
Business Planning assessment and realisation While our clients may be in different markets and industries, they are all in the franchise business. We can help to coach you through your business plan and provide guidance from our own experience. This valuable process can ensure that a business that is characteristically made up of a diverse range of franchised business owners can be channelled into a focussed effort of a motivated network. Healthy growth and sales targets go hand in hand. Franchisor Support The proven business formula depends on the pure and simple fact that the franchisor can deliver the support and umbrella of security. We can assist a franchisor to put into place the people, processes and systems to ensure that the proper support is delivered and adds value to the franchisee’s business. The secret to successful relationships with franchisees relies heavily on the fulfilment of this basic franchisor contractual obligation. A franchisor needs to discover the critical mass point or ratio at which they need to grow internally to ensure the sustainability of the franchise. Deliver what’s promised and receive the solidarity of a satisfied, self-driven network. Franchisor and Franchisee: Management of the Relationship Quite simply, the support a franchisor provides to franchisees conveys their dedication to their success. We can help you to assess your current relationship status, evaluate the effects and provide guidance on how to set appropriate franchisee expectations, and develop an internal network that effectively responds to those expectations. One very important element and particularly effective route to a successful partnership is to have a franchisee group or liaison forum in place for franchisees to participate in the franchisor’s decision-making process; especially for the functions that directly impact the franchisee’s operation. The thought may be daunting to a franchisor however we can assist in providing the structure and the nurturing guidelines to ensure that this group is managed in a fair, constructive and mutually beneficial way. The keys to a successful franchise system lie in creating satisfied franchisees that become a franchisor’s greatest source for new franchise sales. Profit and loss gaps We can help re-evaluate the processes which may create gaps in earning potential, these may include amongst other things: the application process; the sales process; ‘new franchisee’ induction process; sale of the franchise; territorial changes; renewals and terminations. The franchisor must be vigilant about the saleability of the brand it is one of its biggest USP’s and should be treated as a precious asset. Revisiting Franchisee profiling We can help to revisit the tenants of the franchise offering, create an up-to-date ‘picture’ of what the perfect franchisee looks like; as well as assist in brainstorming the areas to target for recruiting new franchisees. What worked in the past, may not work for the future – adaptation is crucial to growth. The trend towards self-employment in the UK is rising steadily and with structured business formats (like franchising) offering a less risky route to entrepreneurship, franchisors need to be at the top of their game in catching the attention of eligible prospective franchisees ahead of the competition. Franchise Operations [1] Training Franchisees and franchisor employees need to understand and support the culture of the brand. The franchisor’s commitment to initial and ongoing training determines pride and brand consistency, especially as the network grows. We can help to assess your current training supply and provide advice on content, points for monitoring and the long term benefits good, consistent training can have. We have the experience in running bespoke in-house franchisee training and can create tailored programmes for your network.[2] ‘Field’ Support This is a very important task that must be carried out. Even where some franchisees may have a close relationship with the Franchisor, at some point they will question the value of their franchise. The element that is worth highlighting is that franchisees will look for a perceived, appropriate and tangible return on their investment as an indicator of their satisfaction level. We can help to guide the franchisor in realising that at the end of the day the bottom line for franchisees is profitability. Field Support is one of the most effective means of improving franchise relations and franchisee operating performance.[3] Pre-Opening Support Once the contractual elements of the relationship have been finalised, the next step is preparing the franchisee to get his/her business started. The path can sometimes be fraught with delays and unanticipated problems however this is an opportunity for the franchisor to impress the new franchisee with unexpected levels of service. The Franchisor should manage the expectations from the outset and be able to provide a realistic timeline for the start-up. These basic steps lay the foundation for the relationship for the future.[4] Compliance Systems The standards of the brand are the backbone of the franchise, without any quality assurance in place the Franchisor cannot guarantee the value of the product it has franchised.[5] Operations Manuals The franchisee operational manual forms part and parcel of their contractual relationship with the Franchisor and is a valuable reference tool for franchisees in managing their businesses. The manual also serves as the most effective means for the franchisor in maintaining the business formula and standards, not to mention the integrity of its trademarks.[6] Franchisor Administrative Processes There are many processes that a franchisor has to cover, and if the system that manages those processes isn’t effective, the franchisor may find itself with uncomfortable franchisee friction and even in litigious circumstances. |