Franchising Best Practice 500

Franchising is a long-term business strategy, from the franchisor and franchisee perspective. Both parties are bound by a long-term contractual agreement, meaning early decisions on the nature of the franchise structure have long-term consequences. For some companies assessing franchising properly in the first place means they don’t franchise at all. For others that do franchise, …

Franchise systems are complex organisations where active action planning throughout is much needed, and for many reasons. Not least, franchisors and franchisees have obligations and performance standards relating to one another – that need to be met. Franchise systems are the perfect environment where there is a need to get a whole lot of stuff …

Franchisor staff presentations, play an important role in achieving conference and important other objectives – like respect for franchisor leadership. And the better the staff presentation skills, the more likely those objectives will be met. Using conferences as a case in point, we note the importance of franchisor staff presenting well. We have been involved …

Franchise company approaches to benchmarking varies. At the lesser end of the spectrum, franchisors may benchmark a little; for example, only high-level sales results. At the greater end, by contrast, franchisors may benchmark a lot; such as, sales and sales composition, labour, gross profit and expenses, and a wide range of productivity and/or non-financial (e.g., …

Many people think of franchise systems as marketing machines. Yet not all companies have a clear brand positioning strategy. As a consequence, some struggle to gain franchisee engagement and confidence in both brand and marketing execution. Issues often manifest in group marketing fund discussions where, to franchisees, decisions maybe questioned, planning appears short-term, and reporting …

As a franchisor you should be a member of your local franchise association, for the benefit of your franchisees, the franchising business model and, as a by-product, the long-term value and sustainability of your own business. Joining your country’s franchise association is especially important in self- regulated countries like New Zealand, where (among other functions) …

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 …