Callum Floyd is a Franchising & Licensing Expert

We will never forget a small franchise network’s conference when the marketing report was delivered and discussed. The report covered the opening balance, the income and expenditure, and the closing balance. Basically, the fund received and spent $150,000 in the same year. The expenditure was explained: $50,000 on radio $50,000 on Google Ads $50,000 on …

A franchisor needs to have a comprehensive franchisor business plan. A franchisor business plan is different from a conventional business plan because there are a number of additional and unique elements associated with being a franchising company. Think of the need to consider the following: Franchisee performance and its importance and potential contribution to the …

Field visits are an important part of a franchisor’s communication, support and development plan. Within this plan, established franchisees should receive a consistent and appropriate level of field visit visitation. We identify consistent visitation because we sometimes observe field visit frequency based more on close proximity and friendliness (coupled with an appreciation for drinking coffee) …

We regard franchisee business planning as a critical franchise system management process and it is a process with references in many Franchise Agreements. Yet, not many franchisors encourage or engage in comprehensive franchisee business planning with all of their franchisees. In other best practices we talk about a leadership focus on franchisee profit. Franchisee business …

Franchise Advisory Councils (FACs) are an important communication form and mechanism for developing a co-operative franchise relationship. Operating well, FACs can strongly contribute to good franchise relations and an advancing business model for franchisor and franchisees alike. FACs, however, often vary in their effectiveness from both a franchisor and franchisee point of view. We find …

It is important for a franchisor to know how franchisees feel individually and collectively. This is important because franchisee satisfaction has the power to help build or destroy a franchise system, depending on whether it is positive or negative. Much, of course, should be done throughout the year in personal interactions and otherwise to know …

Franchise systems need a common basis for understanding and comparing franchisee performance. A common Chart of Accounts is essential for these activities. A common Chart of Accounts is referring to the practice of having the same account breakdown for all revenue, expense, asset, liability and equity items across franchisees. This practice should also extend to …

Franchising is about the transfer of a successful business model and the protection of a valuable brand. Franchise manuals help formalise aspects of the business model, and thus include important information on how franchisees are to operate the business. Franchise manuals also help franchisees understand how they are to operate within the franchise system. Franchise …

Franchisee profit is a principal focus in our work, whether with would- be franchisors contemplating franchising or established franchisors reviewing or improving an established franchise system. Key here is that a franchisor needs to understand and help franchisees drive performance in a total sense; not just sales performance, but also profit performance – and profit …