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. Comprehensive Franchisor Business Plan - Best Practice #8A franchisor needs to have a comprehensive ‘Franchisor’ Business Plan. Think of the need to consider the following:Franchisee performance and its importance and potential contribution to the franchisor and franchise system performance, and potential scale efficiencies and value-add. Franchisee satisfaction and sentiment and …
Blog
Got a question that can’t wait? Give us a call, we’re happy to have an informal chat 09 523 3858.
Consistent Field Visit Visitation
Field visits are an important part of a franchisor’s communication, support and development plan.Within this plan, established franchisees should receive a consistent level of field visit visitation. Consistent Field Visit Visitation - Best Practice #7We identify the concept of consistency in terms of visitation. Because it is not unheard of for us to observe field visit frequency based more on close proximity and friendliness (coupled with an appreciation for drinking coffee) than practical need and equity.At its most extreme case, we have observed a …
Franchisee Business Planning
Franchisee Business Planning NZ. We regard franchisee business planning as a critical franchise system management process and it is a process with references in many Franchise Agreements. Franchisee Business Planning NZ - Best Practice #6Yet, not many franchisors encourage or engage in comprehensive franchisee business planning with all of their franchisees.In other best practice points we talk about a Leadership Focus on Franchisee Profit.Franchisee Business Planning NZ is hugely central to this franchisee profit focus.That is because you cannot have a …
Comprehensive Franchise Advisory Council Constitution
Comprehensive Franchise Advisory Council Constitution - Best Practice # 5Franchise 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 a common pattern of issues around FACs that are partly rooted in a short and/or poorly written FAC …
Regular Franchisee Satisfaction Surveys
It is important for a franchisor to know how franchisees feel individually and collectively. Regular Franchisee Satisfaction Surveys - Best Practice # 4This 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 should be done throughout the year in personal interactions and otherwise to know where franchisees are at. But nothing focuses attention nor can provide a professional measure, like an independent franchisee satisfaction survey of all franchisees …
A Common Chart of Accounts for Franchisees
Franchise systems need a common basis for understanding and comparing franchisee performance. A Common Chart of Accounts for Franchisees - Best Practice #3A 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. This practice should also extend to other financial and non-financial metrics that are relevant to the particular business model.Then franchisees, and franchisor support staff, have a powerful basis …
Up-to-date Franchise Manuals
Franchise manuals help formalise aspects of the business model, and thus include important information on how franchisees are to operate the business. Up-To-Date Franchise Manuals - Best Practice #2Franchising is about the transfer of a successful business model and the protection of a valuable brand.Franchise manuals also help franchisees understand how they are to operate within the franchise system.Franchise manuals need to be useful and cover operational information that is relevant and practical to franchisees. That information needs to be up-to-date. If …
Leadership Focus on Franchisee Profit and Returns
Leadership Focus on Franchisee Profit and Returns - Best Practice #1This is something which we have written and spoken about a lot. Franchisee profit is a principal focus in our work with would-be or established franchisors.When evaluating a company contemplating franchising or reviewing an established franchise system.The crux of the point 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 in relation to their total investment.The …
Franchize Consultants Launch Franchising Best Practice 500
This is a new series of franchising best practices. Franchize Consultants is sharing and publishing these best practices weekly for the betterment of franchising. We know that better knowledge and execution of franchising best practices leads to bigger and more valuable franchisor and franchisee businesses.About the Franchising Best Practice 500 SeriesWe have termed this series the Franchize Consultants’ Franchising Best Practice 500, because there really are that many Best Practice areas and aspects in franchising.In franchising there are best practices …
Franchisors Report Mixed Sentiment
KEY HIGHLIGHTSFranchisors and Service Providers report a mixed sentiment with decreasing confidence in general business conditions. Availability of suitable staff remains a key challenge. Franchisor sentiment for access to suitable locations drifted slightly in April, whilst Service Providers confidence increased substantially. Franchisor and Service Provider sentiment towards franchisee sales levels lifted to remain an area of strength. Franchisor growth prospects sentiment also showed strong increases from both Franchisors and Service …
Franchising 2018 Starts With Subdued Economic Outlook
The Franchize Consultants’ January 2018 Franchising Confidence Index demonstrates cautious sentiment.Click [here] for a copy of the full reportKey highlights include:The latest results indicated neutral franchisor (net 3%) and Service Provider (net 0%) sentiment toward general business conditions.Franchisor growth prospects dipped slightly (net 23%), down 5% from the previous quarter. Service Providers reported similar sentiment movement at net 0%.Franchisors sentiment toward accessing financing were neutral at net 0% up from net negative …
Franchising New Zealand 2017 Survey Highlights
Franchize Consultants were delighted to be a sponsor of the 2017 Survey of New Zealand Franchising.Conducted by Massey and Griffith Universities on behalf of the Franchise Association of New Zealand.Franchising New Zealand 2017 SurveyNew Zealand franchising needs up to date information, particularly the quantification of franchising's total size and contribution. This information is especially valuable when explaining franchising's importance and value to key stakeholders, including government. The information is also helpful for franchisors, …
Franchisors Cautious of Economic Environment
KEY HIGHLIGHTSFranchisors and Service Providers demonstrate a strong shift in confidence levels, with changes prevalent in sentiment toward general business conditions and growth prospects Availability of suitable staff along with suitable locations showed increased sentiment. Previously these were viewed as key challenge areas. Franchisor sentiment towards franchisee sales levels dipped, although remains strong.Click here for a copy of the full October 2017 Franchising Confidence Index ReportThe Franchize Consultants’ October 2017 Franchising …
Strong Franchisee Sales Outlook Continues
KEY HIGHLIGHTSFranchisors and Service Providers demonstrate a continued increase in confidence levels across many areas, particularly, general business conditions, franchisee sales levels, and franchisor growth prospects. Both Franchisors and Service Providers were positive in their outlook for general business conditions. Availability of suitable staff were a standout challenge, and positivity toward franchisee profitability levels diminished. Franchisor sentiment for franchisor growth prospects continues to remain stable. Service Providers perceptions …
Why Franchise a Business
So why do companies franchise? And is franchising for mainly cash-strapped, but ambitious small businesses?20 years ago this question was something I dived into for my Masters of Commerce thesis. 10 NZ-founded franchise systems varying in sector and size provided their motivations - many of whom have now grown into large national enterprises. It is always a topic that deeply interests me.People often have lots of questions, preconceived ideas and misconceptions. And no, franchising is not just for small to medium sized businesses. In the last two years, by …
Franchising Sentiment Positive, But Growth Constraints Emerge…
View a copy of the full April 2017 Franchize Consultants Franchising Confidence ReportKEY HIGHLIGHTSResponding Franchisors and Service Providers demonstrate a positive outlook overall in the areas of general business conditions, franchisor growth and franchisee profitability. Concerns emerge for key growth enablers, including access to finance, access to suitable franchisees and availability of suitable staff. Whilst the numbers show a decline, both franchisors and service provider comments remain quietly positive.The Franchize Consultants’ April …
Franchise Technology Event – Tech for Franchise Success 2017
Franchize Consultants extends an invitation to franchisors to attend the franchise technology event - Tech for Franchise Success 2017.Tech for Franchise Success 2017 is an MYOB led event, also involving Westpac Bank and Franchize Consultants. Franchise Technology Event MYOB are running a special event aimed at helping franchisees get the most out of the latest improvements in business tech. Learn how using tech in your franchise business can help you keep control of your finances, be more productive and reduce risk to help you succeed now and in the …
Are You Measuring and Managing Franchisee Satisfaction?
Measuring franchisee satisfaction is important, as franchisee satisfaction is a powerful concept in franchising. Positive levels of franchisee satisfaction can contribute to strong network growth and development. Meanwhile, poor satisfaction levels have the potential to destroy value and send a franchise system into a slippery downward spiral. If you’re a franchisor you should monitor franchisee satisfaction. Franchisee satisfaction dimensions should make up some of your most important system key performance indicators. And if you’re a prospective franchisee, …
New Zealand Franchising – Franchisors Start 2017 Optimistic
New Zealand Franchising New Zealand Franchising | Franchize Consultants’ January 2017 Franchising Confidence Index demonstrates an increase in confidence across many sector growth drivers.The latest New Zealand franchising results indicated positive franchisor (net 31%) and Service Provider (net 41%) sentiment toward general business conditions. These results were shared by the latest results of other more general business surveys including the ANZ Business Outlook (22% in December) and NZIER (26% in January) business confidence surveys.Franchisors (net 59%) …
Franchisor Sustainability and Buying a Franchise
Evaluating franchisor sustainability and buying a franchise is a critical issue when looking to buy a franchise business. Long term franchising requires a viable franchisor. Franchisor Sustainability and Buying a FranchiseBuying a franchise is a complex undertaking. There's a lot to understand; not least, the type of business, the market, the potential, the funding, your own skills and fit with franchising, and much more.There is a lot to consider; so much so, that even for friends thinking of buying a franchise I refuse to go into real detail until they have …
Franchising Research – Key Franchising Sentiment Metrics Remain Positive
Franchising Research Franchising Research: Franchising Sentiment Metrics Remain PositiveFranchize Consultants (NZ) Ltd Media Release Franchising Research HighlightsFranchisors and Service Providers sentiment continues to provide an optimistic outlook specifically across the areas of franchisee sales levels, franchisee profitability and franchisor growth prospects, and notably increased confidence in relation to access to finance. Franchisors sentiment toward general business conditions was substantially more positive this quarter for franchisors, with …
Making Franchise Field Visits Great
Franchise Field visits are one of the most important franchisor management processes. A well-constructed and executed field management programme, in turn, can have a dramatic and positive impact on both franchisor and franchisee results. Impactful franchise field visits are the result of strong foundationsThere are reasons why franchise field visits are valuable, with key examples being they:Demonstrate franchisor commitment to franchisees Are the most relevant environment for monitoring performance and identifying improvements Help …
Leadership & Franchisee Investment
Franchisees make a big commitment via the franchisee investment when buying a franchise. Franchises range in value from circa $20,000 to what can often be more than $400,000. In some situations franchisees will invest close to or even more than $1 million - depending on the type of business, structure and situation involved.Franchisees that invest will inevitably be taking a quite a risk - albeit hopefully a highly calculated, high conviction one. Pretty much always the level of franchisee investment is a big deal for franchisees and whether it's $20,000 or $200,000 …
Franchisee Sales and Profit Outlook Strong – Franchising Research
The July 2016 Franchising Confidence Index by Franchize Consultants indicated a strong outlook for franchisee sales and profit. Key Highlights - Franchisee Sales and ProfitResponding Franchisors and Service Providers sentiment provides a more optimistic outlook specifically across franchisee sales levels and franchisee profitability. Franchisors sentiment toward general business conditions was slightly more sombre this quarter. Franchisors sentiment about franchisee profitability levels – arguably franchising’s most important key performance indicator, …
Franchise Review – Should You Undertake One Now?
Change is nothing new, and with change comes the need to conduct a Franchise Review and adapt.McDonald’s and many other blockbusting franchise companies would simply not be around today had they not regularly reviewed and revised their business formats, applying best practice to achieve and maintain their market their leadership.New Zealand franchise companies are no different and our experience suggests that many franchisors, along with their respective franchisees, have a lot of opportunity to improve their profits. What are the indicators that a franchise …
Franchising Confidence Index April 2016 – Strong But Mixed
Franchize Consultants Franchising Confidence Index April 2016 demonstrates sustained strong franchisor confidence levels for many areas, like general business conditions, franchisor growth prospects, franchisee sales levels and, to a lesser extent, franchisee profitability. However, sentiment reductions were evident across many of these and other measures. Franchisors were still on balance quite positive about general business conditions (net 33%), the same as the previous quarter. Service Providers reported similar at a net 37%, but down from January …
How to Franchise a Business with Strong Foundations?
How to franchise a Business with Strong Foundations? A franchise system needs to be designed and built responsibly, that is how to franchise a business to succeed. That responsibility starts with designing an appropriate franchise structure based on a successful operating business that has been proven in the field over a period of time.Franchising can be a highly successful method of operating a business which can expand quickly and yield a large competitive advantage.How to Franchise by Building Strong Foundations It should be based on the principle of win-win. …
Franchise a Business with the Right Steps
Franchise a business while achieving excellent results requires planning. In fact, anyone getting involved in franchising needs to do it in the right order. No matter if you are franchisor or a franchisee there is a prior stage. And the prior stage comprises a series of activities, that help pave the way for positive outcomes, and reduce the likelihood and size of challenges along the way. For franchisees in-depth Due Diligence of the franchise and themselves is critical prior to signing agreements. The Franchise Association of New Zealand’s free Online …
New Education Programme for Franchising and Licensing a Business
Franchising and licensing a business can be a very successful way of growing and improving an established business.A new training programme provided by Franchize Consultants, Westpac and MYOB will help business understand the opportunity and steps involved.Wednesday 4th May - Westpac, Auckland - 3 hrs Tuesday 24th May - MYOB, Christchurch - 3 hrs Wednesday 25th May - Westpac, Wellington - 3 hrsFranchising and Licensing a Business Education Dr Callum Floyd of Franchize Consultants, in association with Westpac's Daniel Cloete, and MYOB, will provide …
Franchising and Licensing a Business Training Programme
Franchising and licensing a business can be a very successful way of growing and improving an established business. A new training programme provided by Franchize Consultants, Westpac and MYOB will help business understand the opportunity and steps involved.Wednesday 4th May - Westpac, Auckland - 3 hrs Tuesday 24th May - MYOB, Christchurch - 3 hrs Wednesday 25th May - Westpac, Wellington - 3 hrsFranchising and Licensing a Business Education Dr Callum Floyd of Franchize Consultants, in association with Westpac's Daniel Cloete, and MYOB, will provide …
Franchisors Remain Optimistic in 2016
Franchising Confidence Index January 2016. Franchising Confidence Index for January 2016. Franchisors Remain Optimistic for the coming year. Read our full summary below.KEY HIGHLIGHTSResponding Franchisors and Service Providers sentiment demonstrates continued optimism across many key growth drivers Franchisors sentiment toward general business conditions remains elevated Franchisors remain positive about franchisee profitability levels – arguably franchising’s most important key performance indicator Franchisors sentiment for franchisor growth …
Growing Franchisee Profit with Franchize Consultants
Growing Franchisee Profit with Franchize Consultants presented by Dr Callum Floyd and Michelle Bentham.Helping franchisees identify business profit improvement strategies Tuesday 29th March - MYOB, Auckland - 1 Full dayDr Callum Floyd and Michelle Bentham of Franchize Consultants will help franchisees identify ways to improve business performance, profit and sustainability. This is achieved through an improved understanding of relevant financial and non-financial information, business models, business analysis (including benchmarking and sensitivity analysis), …
Five ‘Real’ Good Franchise Leadership Practices
Franchise Leadership Practices by Dr Callum FloydManaging Director, Franchize ConsultantsAn 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 ConsultantsFranchising Confidence Index October 2015- Key HighlightsResponding 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 RobertsonWin 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 ConsultantsThe 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 RobinsonIf 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 HIGHLIGHTSResponding 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 HIGHLIGHTSResponding 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 …