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by Franchize Consultants,
last updated 26/06/2018

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Franchize Consultants helps franchise companies improve their results

Franchisors have so much to do that the big picture can often be lost within the constant day-to-day challenges of operational issues. But seeing the big picture is vital to ensure there is a strategic focus and a long-term plan for the continued advancement of all stakeholder objectives. This is where good governance can help.

While franchising as a growth model has many advantages, it doesn’t guarantee great results over the long-term. Some franchise companies don’t grow, and some that do grow fail to sustain their success. Instead, they suffer decreasing returns, deteriorating relationships and a tiring market presence. 

‘We believe an important reason why some large franchising companies go into decline is their franchising board and governance – or, more importantly, a lack thereof,’ says Dr Callum Floyd of multi award-winning specialists Franchize Consultants.


‘Good governance can help guide a franchisor through the many challenges and constraints a growing and ageing franchise system will need to respond to. For example, think of the need to adapt to a growing workload as more franchised units are added and require support, or the need to develop suitable responses to evolving technology, changing customer patterns, increasing competition and legal compliance.’


Callum suggests five key areas for boards involved in franchising to focus on.

1. Monitoring franchisee health and performance. ‘Often, boards don’t look broadly enough. Franchise performance needs to be understood across a wide range of metrics, such as individual franchisee returns, satisfaction levels, franchise renewals and compliance levels.’

2. Improving franchisee performance and returns. ‘There can often be a focus on system-wide sales. However, enlightened franchising companies hold franchisee profit as a foremost group objective and imperative, and recognise that total system performance comes via a strong franchisee business model that, in turn, helps attract and retain quality franchisees.

3. Business model innovation. ‘Some companies, like Mitre10 and Foodstuffs’ New World, have made tremendous advancements in store format and operations. Directors need to help franchise companies grapple with the many environmental forces, like technology, that can require substantive changes to the way companies do business and the traditional delineation of franchisor and franchisee roles.’

4. Improving franchise relationships and satisfaction. ‘Franchisee satisfaction levels have the power to help build or destroy franchise system value. Directors can help management through a focus on improving relationships, recognising the sensitivities that exist and the life-cycle franchisees work through.’

5. Implementing systemwide changes. ‘When it comes to making necessary adaptations there is a mantra that “employees can be told, but franchisees must be sold.” Managing successful change in a franchise system requires careful long-term planning.’

Callum says that franchising boards have the capacity to have a great impact on long-term franchising performance, for franchisors and franchisees alike, ‘But to do so effectively, they have to understand the needs, objectives and challenges for all stakeholders.

‘Franchize Consultants can help franchisors improve governance with advice for Advisory Boards and conventional Boards of Directors, as well as providing objective information on current franchise issues. No matter how large or small your franchise system, we are happy to help.’  


See this advertorial on page 39 of Franchise New Zealand Year 27 Issue 01

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FANZ member yes
area serviced nationwide & international
contact Callum Floyd

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