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:
- Analyze and identify the gaps in the current operating systems
- Prioritize which gaps need immediate attention
- Identify strategies and tactics to close the gaps
- Establish follow-up processes to ensure progress is being made on closing the gaps
- 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:
- How customer-centric is your business?
- How effective are your leaders?
- How effective is your strategic, operations & financial planning at the corporate, corporate-franchisee and the franchisee level?
- How does your process of “selling” and “granting” franchisees stand-up to “best practices” developed by other successful franchise companies?
- What is the current state of your franchisor/franchisee relationships?
- What is the role, function & purpose of your field consultants? What processes do they use with the franchisees?
- How effective are your pre-opening and operations manuals?
- 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.
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Talking with Current Franchise Owners
Reading through a FDD is a key part of your research, but it can’t answer all the potential questions you might have about how it is to actually operate a given franchise. The best way to do this is actually to start talking to current franchisees. The best way is to this is to call or visit a franchisee, don’t just email them. You might need to be a bit persistent, but if you are then you can get all of your questions and concerns answered.
Chick-fil-A Wants You to Eat Less Kale?
Several other big-name corporations have been in the news recently for raising similar issues. Nike recently sent a letter to someone selling “Just Jesu It” t-shirts. Best Buy sent a letter to Geek On. Hell’s Angels sent a letter to a designer in California.