Identify the perfect franchise for you! Take our short quiz Find your franchise match!
Identify the perfect franchise for you! Take our short quiz Find your franchise match!

The Necessity to Revamp Franchise Operations and Systems

When you grant a franchise, one of the most important takeways for the new franchisee is an operating system for the franchise. Every successful corporate franchise has a well defined operating system. In order for a company to grow and continue that success, the operating system must be followed.

But, once the original operating system is established, it must be refined and tweaked as changes take place in its industry and within the company. An ongoing challenge for every business, not only franchise companies, is how to improve their operating systems in order to better manage results.

To do this, a company must take a serious look at the current systems, analyze them and then proceed with determining the next steps towards improvement. All companies should have this as part of their ongoing plan, although many do not take the time for this important part of their operation.

A recommended process is as follows:

  1. Analyze and identify the gaps in the current operating systems
  2. Prioritize which gaps need immediate attention
  3. Identify strategies and tactics to close the gaps
  4. Establish follow-up processes to ensure progress is being made on closing the gaps
  5. Train and develop your people with the necessary skills, knowledge & abilities to make their behaviors more effective & sustain performance over time.

Areas in the company that need to be analyzed in order to begin the process are:

  1. How customer-centric is your business?
  2. How effective are your leaders?
  3. How effective is your strategic, operations & financial planning at the corporate, corporate-franchisee and the franchisee level?
  4. How does your process of “selling” and “granting” franchisees stand-up to “best practices” developed by other successful franchise companies?
  5. What is the current state of your franchisor/franchisee relationships?
  6. What is the role, function & purpose of your field consultants? What processes do they use with the franchisees?
  7. How effective are your pre-opening and operations manuals?
  8. How effective are your new franchisee training programs and your on-going training programs?

Once the company has identified the above areas, the real work begins. It is possible to tackle some of these areas and issues with internal staff. However, the more difficult issues and areas where improvement is needed may well require outside consulting, guidance and assistance. One of the most challenging parts of this process is to be honest as you analyze and identify the gaps. It should not be perceived as a negative that there are gaps, but should be looked upon as opportunities to improve your operating systems in order to best manage the results in your franchise system.

To learn more about this topic and others, go to Management 2000’s website at www.mgmt2000.com to see a complete list of franchise management services and seminars offered on many franchise related topics.

Should Franchisors Develop a Best Practices List?

Should franchisors develop a Best Practices List?

Top 5 Reasons to Join an Emerging Franchise

Investing in any franchise is a risk. You’re counting on franchisors for guidance; other franchisees for support and you’re investing a ton of money to build your business. Now add the risk factor of investing in an emerging franchise, a franchise with only a few franchisees. Does it add risk? Maybe, but there are far more benefits of investing in an emerging franchise that the little added risk, is a fleeting concern. Your voice is not only heard by the franchisors, but it’s also helping to make positive changes for future franchisees. Take a extremely large franchise such as, McDonalds or Hilton. Can you imagine a franchisee picking up the phone to call the President of the company to share an idea they had on how to make franchisees daily operations more efficient? In an emerging franchise, you are able to have a close relationship with the corporate team behind the concept and your ideas will be taken seriously. They believe in you as much as you believe in them. Here are five more reasons to join an emerging franchise:

FTC approves new biz opp rule... who cares?

Last week the Federal Trade Commission (FTC) released a new final business opportunity rule which takes effect on March 1, 2012 … but who cares and what does it have to do with franchises?