Franchise units that do not perform well, in the long run, can be highly detrimental to the franchise business. Such that they can prove to be highly damaging for the brand reputation and popularity for the franchise. Moreover, it’s a pull on the cash flow and complete headache for the emerging franchisors using franchise management solution.
Fortunately, there are some tricks you can use to deal with your franchise performance issues before they run out of options. Let’s take a look into it:
Make sure you recognise and solve the issues early
Acknowledging when there are problems with the franchisee units is the ultimate way to find out the solution before it’s too late. Whether there are issues in cash flow, gaps in the sales cycle or problems with compliance, things may easily go out of reach if not addressed earlier.
It’s often found that there were delays between actual financial outcome and reporting that influenced franchisors ability to act during any kind of events. And the failure means that they couldn’t be on the rise when financial problems took place during the delay. To avoid this lag, we would suggest you adopt a franchise management solution integrated into a cloud solution, a system that enables you to access financial data of franchise units in real-time.
Develop a strong franchisor and franchise unit relationship
Whether it’s a corporate relationship or personal relationship, maintaining healthy and happening relationships are always beneficial. Similar to that, having a strong franchisor and franchisee relationship can also signify that franchise units feel mentored, guided and also motivated to run their daily business tasks. Also, franchise units feel motivated to drive business results. It can also mean that there is transparency in communication that allows them to discuss how to enhance processes. At the same time, this can encourage growth and establishment of the overall franchise operations.
Thus, by sustaining a strong relationship between franchisor and franchisee outlets, the unis feel more willing to discuss the performance challenges when they take place. But a poor relationship, on the contrary, can restrict daily operational flow and exploit business productivity and franchisee success.
You can achieve full transparency by having real-time insights into franchise data, financial reports and other important franchise details. Once you develop a franchise management system, you can full visibility over your franchisee units and it will also help you to maintain an open as well as a supportive relationship with your franchise units. It will not just help you recognise issues, when there are problems but also offer additional support and guidance whenever required.
Convincing and retaining new franchisees
Opening up a new franchise business can be a huge investment for the franchisees and before doing that, they always want to ensure if they are making the right decision. Making your brand authority in the market can go beyond common brand awareness. While it may seem obvious, but keeping all data backed up in one place to assist and establish a relationship with the franchise is often ignored. That what lead to the failure of emerging franchise business in managing their performance. But using a franchise management solution you can build a strong support and communication platform that can help your franchise stand out in the market. Also, having these, communication platform helps you to convert prospective customers to turn in to valued partners while allowing you to work with a customer funnel model. Not just, it helps to ensure the security of the future location, by keeping data backup at one centralised place, which is the ultimate key for both franchisors and franchise units.
Managing and organising the franchise network
With franchise situated in one city, it’s manageable for the franchise owner to manage the network. It’s easier to neglect mess among franchise units when there is one city or country to select from. Also, it becomes easier to gather data from sales, marketing and other departments and you can easily control the happenings of the network.
But once, the network began to expand to a significant number of outlets in different locations. At the same time with so many units located across cities, it may become a huge problem for franchisors to manage all of it. Also, it becomes challenging consolidate results, evaluate the franchise and visit every site, etc. It also becomes difficult to estimate messed up effects or to assign exclusive tasks to sites and acknowledge which location works best or how. Now how can you control the growing complicacy of your franchise network?
The best option is to use a franchise management solution that gives you guaranteed flexibility to get along with the challenges during particular needs. Additionally, you have the option to tailor the software needs taking into consideration your existing franchise system, so that integration with other tools and units in your franchise becomes easy.
What are your next steps?
The article offers you series of typical franchise-related issues. But you see using a franchise management solution you can easily tackle all issues faced by franchisors and franchise units. The software is designed to solve all the difficulties and manage your franchise business. To stay updated please keep following us for more. If you have any queries on how we are assisting in franchise optimisation and expansion strategies, do not hesitate to talk to us!