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Franchize Consultants

New Zealand Franchising Consultants Firm

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Franchising Best Practice 500

This is the home of the Franchising Best Practice 500 Series. For franchisors and franchisees, alike.

franchising best practice 500

Franchize Consultants is sharing and publishing these best practices weekly for building great franchisor and franchisee businesses. We know that better knowledge and execution of franchising best practices leads to bigger and more valuable franchisor and franchisee businesses.

Planned Multi-Unit Franchising Strategy

Franchisors considering or managing multi-unit franchising need to carefully plan a multi-unit franchising strategy, along with aligned infrastructure and support. Such consideration should be undertaken regularly, to ensure the right multi-unit franchising strategy (if at all relevant) is employed for the circumstances. There are multiple forms of multi-unit franchising employed by franchisors, aside from a …

Read morePlanned Multi-Unit Franchising Strategy

Complete Franchisor PESTLE Analysis

The new decade demands clarity of understanding of the business environment. Like the previous best practice (SWOT Analysis), a PESTLE Analysis is another strategic planning framework and process all franchisors should complete as part of their comprehensive franchisor business plan and for maintaining a strong governance focus on the future. Where else would you consider …

Read moreComplete Franchisor PESTLE Analysis

Complete Franchisor SWOT Analysis

A SWOT Analysis is a strategic planning framework all franchisors should engage in as part of their franchise system planning processes. This best practice is related to a franchisors need to complete a comprehensive franchisor business plan and maintain a strong governance focus on the future Strategic planning frameworks, like SWOT Analysis, are increasingly essential …

Read moreComplete Franchisor SWOT Analysis

Invest in Specialist Outside Advice

In franchising, especially, even small decisions can have a dramatic long-term impact for franchisors and franchisees alike – therefore increasing the benefits of investing in specialist outside advice. And today, in an increasingly complex, dynamic and uncertain environment, fields of advice are becoming even more specialised. It is our observation, based on 30 years of …

Read moreInvest in Specialist Outside Advice

Local Marketing Expertise

Get Local Marketing Expertise. Other best practices talk of the importance of reviewing franchise marketing structure and fees, franchisee business and marketing planning, as well as the need for field managers to be more rounded business consultants – helping franchisees develop their total franchise business (i.e., not just improve operations and compliance). An important area …

Read moreLocal Marketing Expertise

On-Field Visit Focus

This best practice centres around the field manager’s attention on the particular franchisee and their business unit during the actual field visit. In today’s environment there are clearly many opportunities for distraction, principally via the field managers smart phone, tablet and/or laptop. It is an obvious point to make that the field manager should be …

Read moreOn-Field Visit Focus

Leadership Commitment to Understanding the Franchisee Perspective

A recent meeting with a franchisor highlighted the sometimes-huge differences we see in leadership commitment to understanding the franchisee perspective.  At one end of the spectrum, there are many franchisor leaders that will actively [and sometimes bravely] solicit franchisee feedback, no matter how confronting. At the other end (and a smaller pool, we’d suggest), some …

Read moreLeadership Commitment to Understanding the Franchisee Perspective

Monitoring Total Systemwide Sales

This franchisor best practice of monitoring total franchise systemwide sales is simple and included for completeness. Please also compare with monitoring comparable sales, a separate best practice. We suggest it important to consider both metrics as important franchisor key performance indicators (KPIs) – as each offers important, but different insights. Total systemwide sales can generally …

Read moreMonitoring Total Systemwide Sales

Monitoring Comparable Sales

Franchisors will typically closely monitor total systemwide sales as, for most, their primary income source (that is, a royalty based on sales) depends upon it. A less frequently measured and monitored, but equally important, key performance indicator, is comparable sales. While total systemwide sales reflects all sales to customers (by franchised and company units), comparable …

Read moreMonitoring Comparable Sales

Field Managers Skilled in Franchisee Business Planning

Field managers are increasingly taking on more of a business advisory role in their support of franchisees. Related, other best practices in this series speak of the importance of franchisee business planning, having a franchisee business planning template, the need for field managers to take on a business advisory role, and focusing on franchisee profit …

Read moreField Managers Skilled in Franchisee Business Planning

Franchisor Representatives on Franchise Advisory Council

This best practice speaks to the need for senior franchise executives to be involved in a Franchise Advisory Council (FAC). A FAC’s purpose will often include the objective of taking both franchisor and franchisee businesses forward which, in turn, encompasses the whole franchise system. It therefore follows that a FAC should include franchisor representatives that …

Read moreFranchisor Representatives on Franchise Advisory Council

Board Meeting Duration

Board meeting duration is an important governance dimension. Previous best practices have covered franchise governance structure fit, governance focus on the future and board meeting regularity. Key here is ensuring adequate time and focus is afforded to the many elements of governance in a regular board meeting. The governance role includes compliance, monitoring and controls, …

Read moreBoard Meeting Duration
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