Franchise System Reviews – Best Practice #31
- What benefits could an independent and unbiased review of your franchise system (by franchise management consulting specialists) bring to your franchisor and franchisee businesses – long-term?
- What benefits could be gained by involving franchisees in a comprehensive franchise system review process, including feedback and insights?
- How could a comprehensive franchise system review help you to engage franchisees on a path to future improvements requiring input and efforts by both franchisor and franchisees?
The world of business and franchising is changing rapidly. Accordingly, in our experience franchising companies benefit strongly from a periodic comprehensive review of their franchise system.
Based on our experience, franchise system reviews have provided participating companies an important opportunity to put a stake in the ground and then move forward; taking stock of the situation and performance levels throughout the organisation, and the appropriateness of the current franchise structure and management approach of the time. The franchise system review also harnesses franchisee input, before identifying prioritised areas of change – all targeted at improving franchisor and franchisee performance, value and long-term sustainability.
A comprehensive franchise system review, of the nature undertaken by Franchize Consultants (for more than a decade), is often initiated by:
- Great franchise systems looking for a further edge – and often committed to Best Practice franchising
- Franchise systems seeking performance improvements, and/or
- Franchise systems that have challenging problems to correct
The benefits of such a review is an ‘independent and unbiased’ review by management consultants that specialise in franchise system performance improvements. In all cases our reviews have identified a host of unique, impactful and prioritised solutions – all targeted at improving franchisor and franchisee businesses.
A comprehensive franchise system review considers a multitude of elements of a franchise structure (e.g., franchise agreement elements, manuals, communication, field visits, unit-level business model, marketing, performance management, etc), along with the governance and management of key management processes. A comprehensive franchise system review also reviews performance (financial and non-financial, including franchisee satisfaction) at all levels, as well as harnessing the input and review of franchisee operations and perspectives. It is a substantial and important undertaking.
A regular and comprehensive franchise system review sets an important foundation from which improvements can be generated and addressed for the benefit of all key stakeholders.
Best Practice, in our view, is undertaking a comprehensive Franchise System Review, every 5-8 years – with the regularity dependent on the situation.
About the Franchising Best Practice 500 Series
This is part of a 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.
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