Here are 10 elements that you will find in the top performing franchise programs. If you are a franchisor and want to enhance your franchise performance, make sure these are a part of your franchise operation.
Does Your Franchise Program Contain the Elements of a Top- Franchise?
Ever wonder what sets the top franchise brands apart from the rest? There is a big difference between the indicators of a good franchise program and how the franchisor got to that stage. Whether a franchise system has 10, 100 or 1,000 units there are certain practices that separate the top franchise brands from the rest.
Here are 10 elements that you will find in the top performing franchise programs. If you are a franchisor and want to enhance your franchise performance, make sure these are a part of your franchise operation.
1. Stick to your franchisee profile
Have a franchisee profile and when franchise candidates do not fit the profile, say no! If using brokers, then remain in control of the franchise sales process.
2. Be candid with prospective franchisees
Provide prospective franchisees the tools they need to be a successful franchisee.
3. Have an effective training program, evaluate it, and continue training
Top performing franchisors have an effective training program that continues as an on-going activity.
4. If the franchise program needs adjusting, then do it
If certain marketing programs, products or services are not delivering the results then make changes.
5. Franchisee profitability must be a priority
The structure of the franchise program both operationally and financially must provide franchisees an opportunity for success that does not require extraordinary performance. If the franchisees follow the program and do not earn an ROI commensurate with their original investment, then the franchise is flawed. There must be balance between the earnings of the franchisor and its franchisees.
6. Franchisor leadership must be fully engaged in the franchise operation
Franchisor executive leadership must be totally involved in the franchise so that there is total awareness of successes and failures. There is no room for “surprises” when it comes to franchise operations. Whatever the forum, franchisee feedback must flow to franchisor leadership.
7. Solicit Franchisee input for important operational and marketing decisions
Whether through a Franchise Advisory Council, advertising committee or other representative body use them as a sounding board before making major operational decisions.
8. New products and services should be evaluated and measured by select franchisees before introducing
Obtain objective results from these franchisees, which will enable you to obtain a franchisee system buy-in when implemented.
9. Measure franchisee results on a regular basis
Use key performance indicators (K.P.I.s) to measure franchisee performance on a scheduled basis, whether monthly or quarterly. This enables a franchisor to know how its franchisees are performing.
10. Protect the integrity and standards of the franchise program
It is critical that the franchisor uphold the standards of the franchise. The franchisees that follow the program deserve it and the customers that use the product or services provided by the franchisees are entitled to consistency. Franchisors that do not protect their brand are not respected by their franchisees.
When franchisors have these elements in their franchise program, they can feel confident their franchise brand will be a top performer.
About the Author:
Ed Teixeira Franchise Expert, Author, Franchise Executive and Former Franchisee with 40 years of Franchise Industry Experience.Ed is a recognized franchise expert with over 35 years experience in the franchise industry. He has served as a corporate executive for franchise firms in the retail, manufacturing, healthcare and technology industries and was a franchisee of a multi-million dollar home healthcare franchise. Ed is the author of Franchising From the Inside Out and The Franchise Buyers Manual. He has participated in the CEO Magazine Roundtable Meetings with business leaders from around the country and spoke at a number of venues including the International Franchise Expo and the Chinese Franchise Association in Shanghai, China. Over the course of his career, Ed has been involved with over 1,000 franchise locations and launched franchise concepts from existing business models. Ed can be contacted at 631-246-5782 or [email protected]