Advisor Profiles

by Franchize Consultants

last updated 26/06/2020


Tips For Great Franchising Part 6

by Franchize Consultants

last updated 26/06/2020


Franchize Consultants share eight more practices to build excellent franchises

Award-winning Franchize Consultants are creators of the Franchising Best Practice 500 and publishers of the Best Practice Handbook. Here’s a summary of the latest best practices in the series – find them in full, along with all the previous tips, at franchize.co.nz.

39. Unannounced field visits

Unannounced field visits can be valuable, but they work best when they are an established part of the franchise system. That means franchisees should know to expect an unannounced visit – whether as part of a regular routine or in response to a compliance issue.

40. Governance focus on the future

Franchise company boards or other governance structures need to ensure that enough time is focused on the future, as opposed to past and current issues. That means investing governance time to focus on strategy, including key trends such as technology, social factors, the economy and labour market, legislation, the environment and so on.

41.  Review your marketing structure

The changing media landscape, including increasing digital marketing, means changes may be needed to franchisor and franchisee marketing responsibilities and associated fee structures.

42. Structured field visit agenda

Field visits should have a structured agenda that is known to both franchisor and franchisee and organised to create the most value from each field visit. It is important for visits to be productive because both parties depend on them, and field visits are costly to resource.

43. Buyer focus on returns

If you are considering purchasing a franchise, we suggest you focus on the potential returns rather than the type of work involved. Find out what the business will need in financial terms upfront, and what it could or should look like as it grows. By following this process, you may find some of the best returns are available in industries you weren’t initially aware of or attracted to.

44. Governance meeting regularity

Franchising, by its very nature, demands strong governance. Having regular governance meetings reflects a proper level of focus and resource on this area. A franchisor needs to ensure enough relevant time is dedicated to these meetings, and that they are frequent enough.

45. Field visit output

Field visits are too expensive and too important not to have a valuable outcome. Develop a formalised field visit output that both franchisee and franchisor are committed to.

46. Support office surveys

Conduct a regular and independent survey of support office staff satisfaction and engagement across a range of dimensions. We suggest these also probe for improvement suggestions and other insights, and that results are benchmarked over time and across companies.

More detail

Dr Callum Floyd, Managing Director of Franchize Consultants, says, ‘We help good franchises become great companies, and enable great companies to stay at the top of their game. For more information on these and many other franchising best practice insights, go to our website.’   

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