Using K.P.I.’s to your benefit
Some Franchisors can find formulating KPIs to be a confronting exercise but the benefits to both Franchisor and franchisee from having measurable performance targets should not be underestimated.
Establishing KPI’s in your franchise often means going back to basics, and exploring the fundamentals of your franchise.
Are your franchisees achieving what they want from their business? or are they complaining that they can’t make any money?
Is your system flawed? and if it is are you brave enough to firstly acknowledge that there is an inherent problem and THEN seek professional advice to restructure?
Disillusioned Franchisees
How many of you know of a disillusioned franchisee? Let’s face it, the current affairs programmes are full of them.
A Franchisee is a business owner who owns a franchised unit, for example a Bakers Delight, Subway and many many more less well known brands.(please note I am not suggesting that any Bakers delight or Subway franchisees are disillusioned!)
As a franchising consultant, I see a fair few franchisees, and due to the nature of my work, many of them are very disillusioned.
Franchise Education
Much is discussed by franchising “experts” and government bodies about introducing more legislation to improve the world of franchising.
But how much would increased legislation actually reduce franchisee risk?
Potential Franchisees are advised to seek professional advice from a lawyer, accountant and consultant. How many lawyers and accountants are really “au fait” with franchising practice?
How many professionals would admit to clients that their franchising knowledge is minimal?
And how often do potential franchisees not seek any advice at all?
Good Franchising Practice
The International Franchising Association Code of Ethics states that the following points are essential ingredients in good franchising;
Trust, Truth and Honesty – Are the foundations of franchising.
Mutual respect and reward – Result in winning together as a team.
Open and frequent communication – Successful franchises thrive on it!
Obey the law – This refers to all laws including compliance to the franchise system.
Conflict resolution – Deal with potential conflict swiftly and effectively.
I don’t want to be a Franchisor anymore!
I don’t want to be a Franchisor anymore!
As a Franchisor have you ever felt like that?
The answer to that could depend on:
- The length of time that you’ve been a Franchisor.
- The number of franchises in your network
- Your initial reason for franchising in the first place
- The level of support you have from family
- Your internal management structure.
- The strategic planning within your business
- Your commitment to goals
- Vision
- Succession planning
This is a lengthy topic, but one that my day-to-day contact with Franchisors leads me to believe deserves attention. Continue reading
