Franchise Leadership Practices by Dr Callum Floyd Managing Director, Franchize Consultants An Introduction of Franchise Leadership Practices Recent work with a small, but developing franchise company has reminded me of the value and characteristics of good franchise system leadership. The company in question was recently sold and the new owners and leadership recognised weaknesses in the current structure and performance levels achieved. But, importantly, that same leadership saw, and was/is willing to invest in, needed improvements to the franchise …
Franchising Confidence Index October 2015 – Confidence Improves
New Zealand Franchising Confidence Index | October 2015 from Franchize Consultants Franchising Confidence Index October 2015- Key Highlights Responding Franchisors and Service Providers sentiment provides a more optimistic outlook across many key growth drivers. Franchisors sentiment toward general business conditions increased markedly from last quarter. Franchisors still remain positive about franchisee profitability levels – arguably franchising’s most important key performance indicator, and sentiment has increased this quarter. Franchisor sentiment …
Leadership and Franchisee Profit Analysis
At Franchize Consultants we have long talked about the importance of Leadership and Franchisee Profit as a vital focus for franchising companies. Consider the Franchisee Perspective Aligned, our own research showed that the most important reason given for considering a franchise was "greater income and wealth building potential." It makes sense that anyone who invests in a franchise will have an orientation towards making some kind of return on that investment. We believe it is important to consider franchisees could have invested elsewhere. Furthermore, experience …
Franchising Confidence Drops in July
New Zealand Franchising Confidence Index | July 2015 from Franchize Consultants KEY HIGHLIGHTS • Responding Franchisors and Service Providers sentiment provides a less optimistic outlook across many key growth drivers. • Franchisors sentiment toward general business conditions remains slightly positive, albeit down from last quarter. • Franchisors still remain positive about franchisee profitability levels – arguably franchising most important key performance indicator, however sentiment has decreased this quarter. • Franchisor sentiment for franchisor growth …
Franchising Sentiment Remains Positive
New Zealand Franchising Confidence Index | April 2015 from Franchize Consultants KEY HIGHLIGHTS • Responding Franchisors and Service Providers sentiment remains positive across many key growth drivers. • Franchisors sentiment toward general business conditions remain elevated. • Franchisors remain positive about franchisee profitability levels – arguably franchising most important key performance indicator. • Franchisors sentiment for franchisor growth prospects increased slightly, however sentiment for sales level per franchisee, access to suitable staff and …
Established Franchisor Business Plan Always Required…
We spend a lot of time talking about the importance of 'Franchisee Business Planning' and helping enlightened franchisors properly embed Franchisee Business Planning systems and processes within their networks. Our work here invariably involves a mixture of business and financial analysis, consulting, tool development, training and education, and in some instances changes to the commercial structure of the franchise system. Yet while more and more franchisors embrace Franchisee Business Planning, precious few established franchisors conduct what we would regard as …
Franchize Consultants Named 2014-2015 Service Provider of the Year
We would like to share our pleasure in being named the 2014/2015 Service Provider of the Year at the Westpac New Zealand Franchise Awards. It is the sixth time we have won the award, which is a record we are very proud of. From left to right: Andrew Allen, Brigid Duffield, Callum Floyd, Robert McLaren, Shelley Cross, Win Robinson, Michelle Bentham and Graham Elliott. Absent: Ross Blake, Pam White and Pete Swinburn. The judges called Franchize Consultants ‘A deserving winner. Franchize Consultants is strongly process-based and shows evidence of ongoing innovation. They …
Franchise Association of NZ Inducts Win Robinson into Life Membership
Franchize Consultants is proud to announce the Franchise Association of New Zealand (FANZ) inducted Win Robinson into Life Membership on November 15. On the night of the 2014/2015 Westpac New Zealand Franchise Awards. Win (centre) receiving the award from David McCulloch and Ian Robertson Win was introduced with the following statement: After four and a half years as a Product Manager at Reckitt and Colman Win became General Manager of Homecare (NZ) Ltd. Which was a franchise out of the USA and owned in New Zealand by a Canadian QC and Harry Taylor, a …
Franchise Association of NZ Fraser Heaven into Life Membership
Franchize Consultants was proud to announce Fraser Heaven, who in 1989 founded Franchize Consultants. Fraser was inducted by the Franchise Association of New Zealand (FANZ) into Life Membership at the 2014/2015 Westpac New Zealand Franchise Awards. Fraser Heaven received the award from David McCulloch and Ian Robertson. Fraser was recognised for his foundation achievements, and was introduced with the following statement:Fraser is now in the 25th year of his association with franchising having first established Franchize Consultants Limited in 1990, a business …
Franchising Confidence Slightly Moderated
New Zealand Franchising Confidence Index | October 2014 from Franchize Consultants KEY HIGHLIGHTS For a full copy of the October 2014 report click here Responding Franchisors continued an optimistic, though slightly moderated outlook across many key growth drivers. Service Providers were mostly reflective of this sentiment. Franchisors sentiment toward general business conditions is higher than other general business confidence surveys (i.e. ANZ and NZIER). Franchisors still report positivity in their outlook for franchisee profitability levels (though …
Franchising Sentiment Mostly Positive
New Zealand Franchising Confidence Index | July 2014 from Franchize Consultants KEY HIGHLIGHTS • Responding Franchisors sentiment is still positive and remains elevated across many key growth drivers, however Service Providers were less positive generally and markedly in some areas. • Franchisors sentiment toward general business conditions tops other general business confidence surveys (i.e. ANZ and NZIER). • Franchisors remain positive about franchisee profitability levels – arguably franchising’s most important key performance indicator. • Franchisors …
Franchising Sentiment Shows Continued Optimism
The Franchize Consultants’ April 2014 Franchising Confidence Index demonstrates a further increase in a general trend towards improved confidence across overall sector growth drivers. New Zealand Franchising Confidence Index | April 2014 from Franchize Consultants The latest results indicated positive franchisor (net 63%) and Service Provider (net 92%) sentiment toward general business conditions. These results were shared by the latest results of other more general business surveys including the BNZ (net 64% in April), ANZ Business Outlook (67% in March) and …
FANZ Prospective Franchisee Online Training Programme
The Franchise Association of New Zealand Prospective Franchisee Online Training Programme is a specialist programme intended to educate would-be franchise purchasers. The programme was launched at the FANZ conference in Auckland in July 2013 and has now educated more than 1000 people. The following article presents five facts you should know about the programme. Fact One: The programme covers a lot of information prospective franchisees should know The training program is wide ranging covering more than 30 topics under the following five module headings: Module …
Five Franchisee Key Performance Indicators All Franchisors Should Watch
Franchisors need to monitor franchisee performance for two reasons. One pertains to understanding the growth and continuity their own business. And the second, is for the ability to know where and how to help franchisees. Some franchise companies and their advisors plan and collect a wide range of KPIs from franchisees, covering a number of business functions and processes - and comprising both financial and non-financial measures. Many measures will be specific to the particular business model - and need to be. By contrast, some KPIs are fundamental and transcend …
Export Your Business Service By Using A Franchise Model
By Win Robinson If you operate a successful service business in New Zealand you can export it. It can in most cases be exported by a franchise structure just like Fastway Couriers, EC Credit Control, Les Mills Gym programmes, Harcourt’s Real Estate and other franchisees like BurgerFuel, NZ Natural Ice Cream and Esquires Coffee who have all successfully taken their businesses off shore using a franchise format. The Americans, British and some other countries have their overseas embassies actively promoting their respective franchise systems through their embassy …
Franchisors Report Record Confidence in General Business Conditions
The Franchize Consultants’ January 2014 Franchising Confidence Index demonstrates a further increase in a general trend towards improved confidence across overall sector growth drivers. You can view the following SlideShare presentation and highlights, or click here for a full copy of the report. New Zealand Franchising Confidence Index | January 2014 from Franchize Consultants KEY HIGHLIGHTS Responding Franchisors and Service Providers sentiment is extremely positive and remains elevated across many key growth drivers. Franchisors sentiment toward …
Franchisors Continue Positive Outlook
The Franchize Consultants’ October 2013 Franchising Confidence Index demonstrates a continued generally positive outlook in confidence across many key sector growth drivers. You can view the following SlideShare presentation and highlights, or click here for a full copy of the report. New Zealand Franchising Confidence Index | October 2013 from Franchize Consultants KEY HIGHLIGHTS Responding Franchisors and Service Providers reported mostly solid optimism across many key growth drivers. Franchisors sentiment toward general business conditions is high and …
Reasons Why Franchising Without a Franchise Consultant is Reckless
Some companies elect to franchise their business without the expert input of a specialist franchise consultant. In most cases, the process involves a lawyer taking instruction from a company to produce a Franchise Agreement, without seeking the crucial input of franchising specialist services. At Franchize Consultants we understand the impact not using a specialist franchise consultant can have. This is based on our success helping established franchised clients that did not seek such advice in the first instance. In our experience, the following shortcomings are …
Franchising Sentiment Remains Elevated
The Franchize Consultants’ July 2013 Franchising Confidence Index demonstrates a general trend towards improvement in confidence across overall sector growth drivers. You can view the following SlideShare presentation and highlights, or click here for a full copy of the report. New Zealand Franchising Confidence Index | July 2013 from Franchize Consultants The latest results indicated highly positive franchisor (net 50%) and Service Provider (net 67%) sentiment toward general business conditions. These elevated results were shared by the latest results of …
Franchisee Planning 2013 for a Brighter Future
Franchisor participants to all of our franchise management training programs know of the importance we place on franchisee business planning. We regard it as a critical franchisee and franchisor success factor and process which, in my experience, is often underdone or worse still - left unattended. This leaves a lot on the table for both parties, often manifests in poor decisions, mediocre performance and, at the extreme, business failure. This article highlights five common objections, five reasons why planning is crucial, and four suggestions for ensuring …
Optimism Builds within the Franchising Economic Growth Engine
The Franchize Consultants’ April 2013 Franchising Confidence Index demonstrates a general trend towards improvement in confidence across overall sector growth drivers. You can view the following SlideShare presentation and highlights, or click here for a full copy of the report. New Zealand Franchising Confidence Index | April 2013 from Franchize Consultants Franchisor sentiment for general business conditions (at net 53%) tops that indicated in recent general business forecasts, as reported in the March NZIER (23%), ANZ Business Outlook (35%) and BNZ (25%) …
Wise Counsel
Franchise Advisory Council is a formal structure which will not only help develop good relationships but will make the whole system stronger and quicker to respond. Every franchisor tells you that the most important single factor in their company's success is the relationship they have with the franchisees. This relationship is like a partnership, or a marriage - the two parties are dependent on each other for support, encouragement and mutual achievement. Rewards are shared.This acceptance of the interdependent nature of franchising is not obvious if you look at any …
International Franchising and Licensing
Overseas markets are attractive to local businesses, as they are often perceived to represent huge, untapped potential - many times the home market size. For example, from a New Zealand perspective, Australia has more than five times our population. Britain is similar in landmass to New Zealand but exceeds its population by a multiple of 15. The United States of America is much larger again – and each of the aforementioned countries have per capita income much greater than New Zealand. Many Asian markets are also increasingly attractive to local exporters, particularly …
Benchmark Challenge – Why not compare yourself to the top?
There is real merit in benchmarking your franchisor organization against McDonald’s—as audacious as that sounds. Benchmarking is a vital best practice process all conscientious franchise systems should undertake. It enables the understanding and development of both franchisor and franchisee performance by comparing actual performance data to a range of dimensions. There are many possible perspectives to benchmark against, and these can be both internal and external to the business and the franchise network. The following are some of the more obvious and common …
10 Franchisor Leadership Practices for 2013
At a consultant meeting late in 2012 we put aside discussions on business models, franchise structure and management, and focused on franchise system leadership. We went around the room looking for practical examples. Each of our 10 consultants identified both a positive and poor franchise system leadership practice they had observed, along with the consequences. Given we've commenced a new calendar year, and are fast approaching a new financial year; we thought you mind find this list of 10 useful: Maintain a focus on franchisee profit as a top priority. We …
Franchisors Cautiously Optimistic in 2013
The Franchize Consultants’ January 2013 Franchising Confidence Index demonstrates a continuation of mixed results across overall sector growth drivers. You can view the following SlideShare presentation and highlights, or click here for a full copy of the report. The latest results indicate a consolidation in franchisor and Service Provider (views for franchisors generally) forecasts for general business conditions. Franchisor responses improved to a net 37%, compared to 28% in October. Service Provider sentiment showed a more marked improvement from net 42% to …
Franchize Consultants (NZ) Ltd wins the “Service Provider Award” for the fourth time
We would like to share with you our delight in winning this award. It is the fourth time we have won it, which is a record we are very proud of. The judges had this to say: "The strength of Franchize Consultants is their strong leadership, their people and their high-profile client list. Their thorough understanding of their business, coupled with robust performance indicators, enabled them to see at an early stage the potential impact of the Global Financial Crisis on their business. They have developed an excellent strategy for the future and are achieving good …
Franchisors Forecast Improved Top Line. Margin Pressure Continues
The Franchize Consultants’ October 2012 Franchising Confidence Index demonstrates a continuation of mixed results across overall sector growth drivers. You can view the following SlideShare presentation and highlights, or click here for a full copy of the report. The latest results indicate a consolidation in franchisor and service provider (views for franchisors generally) forecasts for general business conditions. Franchisor responses improved to a net 28%, compared to 22% in July. Similarly, service provider sentiment improved to 42% (current) from 34%. …
MANAGING A FRANCHISE SYSTEM TRAINING PROGRAM
Managing a successful franchise system is a unique and complex business. This training programme from Franchize Consultants teaches the fundamentals of managing a franchise system and provides franchisor executives with core knowledge and skills necessary to effectively manage a franchise network and earn the on-going respect and co-operation of franchisees. Click this link to view our full brochure in *pdf format Core content The many roles of the Franchise Support Office,including strategy, operations, sales, marketing, finance and administration, franchise …
FRANCHISE FIELD VISITS TRAINING PROGRAM
What are Franchise field visits? What should a Field Support Representative do? And how does this fit into overall franchise system management? Effective field support visits have a dramatic impact on the health and performance of a franchise system. This field visit training program for field representatives and franchisor executives provides powerful insights into the role of field visits how they should be performed effectively. Importantly you will also gain knowledge on the background franchise infrastructure required in order to provide effective field visits, …
FRANCHISE SEMINAR: HOW TO USE THE FRANCHISE ADVANTAGE?
Franchise Seminars The purpose of the Franchise seminar is to provide business executives and proprietors with the opportunity to learn about the potential and process of franchising a business. Key topics to be covered include: History of franchising Franchising advantages and disadvantages Key structural elements of a franchise Systems and documentation The franchise recruitment process The franchise agreement Franchise financing The speakers are all highly experienced franchise specialists: Daniel Cloete - National Franchising Manager, …
Franchise System Manuals Worth Their Weight?
The excellence of a franchisor will be reflected in their system manuals. When you become a franchisee you are keen to get your hands on the accumulated knowledge and experience of the franchisor, their insight, their proven profitability, and their mistake-avoidance. Before signing the franchise agreement, the franchisor should make available the operational manuals. So, how can you gauge if the manuals are any good? Here are some things to look for: There should be evidence that manuals provide for updates to processes and procedures. There should be separate books, or …
Franchising News: WHAT’S NEW?
Franchising News - What’s happening in the franchise world and where’s it all headed? As per usual the menu includes growth, and that’s exciting. Stimulatating too is the emergence of previously non-franchised sectors, interesting acquisitions and alliances, and new multi-unit franchisees. But today’s environment also provides many challenges. Some markets are changing rapidly, competition intensifies in many sectors, technology continues to proffer new opportunities and threats, and disputes continue to emerge. Chain management gets tougher. Franchising News - What's …
Franchise Checklist: WHEN TO SAY NO TO A FRANCHISE
Franchising can and should provide an enjoyable and profitable journey for both franchisees and franchisors, alike. Unfortunately, this is not always the case. Accordingly, we have compiled the following Franchise checklist for prospective franchisees to consider when evaluating a franchise opportunity. Franchise Checklist When to say no: When [for New Zealand franchisors] it is not a member of the Franchise Association of New Zealand If the franchisor is willing to change the franchise agreement just to make the franchise sale. (Preferably, agreements should be …
WHAT IS FRANCHISING?
What is franchising? Franchising is a powerful organisational form with the potential to deliver great benefits to businesses in an increasing range of countries and industry sectors. What is franchising? Two key kinds of Franchising The first is business format franchising. The second is product and trade name franchising. Business format franchising is a method of business expansion whereby a business owner or manager allows someone to market products or services. Specifically, under their name and trademark and with strict adherence to a prescribed system. In …
INTERNATIONAL FRANCHISING: TAKING ON THE UNITED STATES
International Franchising: Taking on the United States Many franchisors are attracted to the United States (US), the market most responsible for franchising’s popularity today. Franchise success stories like McDonald’s, Burger King, 7-Eleven and Marriott Hotels highlight the enormous scope for expansion within the US economy. The US population (287m) and [purchasing power parity or PPP] per capita GDP (US$36,400) is huge compared to culturally similar countries like Britain (60m; US$26,518), Canada (31m; US$30,766) and Australia (20m; US$ 27,566). New Zealand, by …
INTERNATIONAL FRANCHISING: DESTINATION AUSTRALIA AND NEW ZEALAND
International Franchising: Destination Australia and New Zealand Australia and New Zealand are sophisticated markets with dynamic, growing franchise communities. Both offer significant opportunities for franchising. Australia is the larger of the two countries with around 20 million people. New Zealand has four million. Per capita annual GDP income is similar with Australia and New Zealand currently earning about US$20,000 and US$15,000, respectively. Both are predominantly English speaking. Both Australia and New Zealand are sophisticated countries which rapidly adopt …
MAKING THE RIGHT DECISION
Making the right Franchising Decisions for your Business. While there are many franchise opportunities for sale there are as many questions you might like to consider before making any important decisions. First are questions you can ask yourself and second are questions more specific to finding the right business. Early on you may consider whether you are suited to franchising. While you may possess the drive and enthusiasm required you also need to be prepared to work within the framework of the franchise. Some find following methods and procedures provided for running …
Managing a Franchise System Presents New and Unfamiliar Challenges
Managing a Franchise System. For a franchise system to flourish over the long-term, it will need to be grounded in the franchisor’s philosophy that support and guidance of franchisees is fundamental to success. When committing to a franchise system, a new franchisee expects their success to parallel the best. With continued support and guidance they have every chance. But it is the quality of that guidance that counts. Managing a Franchise System Managing a franchise system presents new and unfamiliar challenges for those from a background in the management of …
ISN’T IT INTERESTING! THE BEST WANT TO BE EVEN BETTER
Improve Franchisee Performance for your franchise. Recently our firm sent out a questionnaire to a certain group of franchises asking if they wished to get more information on a range of subjects that we had selected to assist and improve franchisees performance. We have had a good response but guess who they were? Yes, they were already the top performing franchisors, still wanting to improve and proactively looking for ways to assist themselves and their franchisees. I guess that's how they got to the top. They are continuously looking for the best information to help …
INVINCIBLE FRANCHISES FACE TOUGH CHALLENGES
Challenges Faced By Franchises. Franchising has had an unquestionable impact on many countries economies and is widely acclaimed for its contribution to GDP, retail sales, job creation and training. Many chain operations utilising franchising have grown large franchise networks, and some global franchises like McDonald's (with 29,000+ restaurants in 119 countries), Subway, Blockbuster and Century 21 have reached 'King Kong' or invincible proportions - or so we may believe, given their level of size and brand awareness. This perception of invincibility is, …
Franchise Business: INCREASE PROFITS, REDUCE PROBLEMS
I was recently re-reading Douglas Myer's book "What I've Learned in Business" and I came across the sub heading "Find a Mentor". The book goes on to tell how a Dr Grant Lau, who advised the Todd family in the mid nineteen sixties, was asked to become the young Myer's mentor. Myers said that he needed someone to help him think through the position he was in, rather like McKinsey (the US firm of management consultants) does today. They didn't operate in New Zealand in those days. Myers goes on to state that he was wanting and needing to progress his company, Lion …
FRANCHISING AND GOVERNANCE
Introduction to Franchising Franchising has had an unquestionable impact on many countries economies and is widely acclaimed for its contribution to GDP, job creation and training. With estimates of franchisors and franchisees currently exceeding 350 and 15,000 respectively, New Zealand is perhaps the most franchised country in the world, ahead of Australia, Canada, the US and the UK, respectively. Franchising is an organizational form employed by multi-site organizations large and small, profit and non-profit. Global franchising examples include McDonald’s, Subway, …
FRANCHISING IN NEW ZEALAND
Franchising in New Zealand Franchising in New Zealand has gone from strength to strength, with an estimated 300 franchise systems generating combined turnover of around $10 billion. The number of franchise outlets in the country totals over 14,000. These figures catapult New Zealand to the leader board in terms of franchising utilisation. New Zealand has clearly embraced franchising as a method for distributing products and services. Unlike some other countries, New Zealand has no specific legislation relating to franchising. However, we strongly support and …
Franchising a Business
Franchising a business is a method that has greatly enhanced the performance of many corporations and small companies. It has enabled many companies to expand rapidly and profitably, with good long-term stability. Franchising is a format which is adaptable to many different areas and types of business. Franchising a business - Key details Pace Franchising a business can provide faster growth. A company can often accelerate its growth by using a franchise business format - rather than just adding branch outlets as funds allow. People Franchise owners, more often than …
Different Franchising Types
Franchising types for your business. One important franchising decision affecting new franchisors is deciding on which franchising types are suitable to their individual circumstances. This can be a complex process as there are several methods of franchising. With the terms of franchise agreements typically spanning years, the final decision carries long-term consequences. Five Common Methods of Franchising Types Though further variations are possible, most franchise systems draw from five common methods of franchising. To help illustrate each method we can …
Book Review of Global Franchising Operations Management
Book review by Dr Callum Floyd Global Franchising Operations Management: Cases in International and Emerging Markets Operations by Ilan Alon is a book of cases representing different international franchising perspectives and vignettes. This is an important contribution to the field of international franchising knowledge and education. The case studies presented illuminate a wide gambit of issues facing prospective and existing franchisors and franchisees alike. Coupled with the wide range of business types, stages of development, countries and contexts discussed, the …
Franchising Outlook Positive. Funding Available For Franchisees
The Franchize Consultants’ July 2012 Franchising Confidence Index demonstrates mixed but still mostly positive results across a number of measures crucial to franchisor and franchisee success. Click here for a full copy of the July 2012 Franchising Confidence Index report Both franchisor (net 22%) and service provider (net 34%) outlook for general business conditions remain positive, but have dropped after last survey’s record increase. Franchisor outlook for franchisor growth prospects improved slightly from the previous quarter at net 54%, however service …
High Performance Franchising Characteristics
I believe the following clip captures the desired outcomes of high performance franchising in action. Aim high! https://www.youtube.com/embed/FoSXOYorFxg As outcomes they are, however, difficult to achieve. We often find considerable scope to help franchisors improve upon current performance levels – to the betterment of all key stakeholders. For assistance, please check out our consulting services for new and existing franchisors. …
How important is it to get your franchise structure right?
Getting your franchise structure right from the outset is absolutely vital. Decisions you made at the beginning go on to influence both your (as a franchisor) and your franchisee’s capacity for growth, development and long term prospects for survival and success. Every franchise system encompasses a number of key structural components, each of which require configuring with the utmost care. Examples of seven key areas include: Responsibilities – such as who is going to do what across all possible functions Franchise Support Office structure – including how this …