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Franchise Operations
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One of the crucial factors that contribute to the success of any franchise lies in building and maintaining a strong relationship between the franchisor and the franchisee. Open communication and trust are the pillars that support a successful franchising model. Effective communication is essential to creating a strong foundation for franchise growth. It is an effective tool that can help both franchisors and franchisees understand each other’s priorities, challenges, and expectations for the future. In this blog post, we will discuss the importance of effective communication between franchisors and franchisees, and how to establish open lines of communication and trust.

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Technology is constantly evolving, and businesses need to be prepared to adapt in order to stay competitive. Franchisors who don’t update their systems and technology may find themselves struggling in the years to come. One way to help ensure that your franchise system is keeping up with the latest trends is by implementing a technology fee in your FDD. In this blog post, we will discuss the benefits of doing so and how it can help your brand in the long run.

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We have all heard that Unit Level Economics is important in franchising but going from understanding it in theory to transforming it into action is a big step.  According to QSR Magazine, “the success or failure of a franchise concept can pivot off of how well unit economics are tracked, managed, and improved.” After working with over 900 brands a common practice among them is working together with their franchisees to improve their unit-level economics: not only their top-level sales but also their bottom line. If you’re not doing this today, you will have trouble selling franchises in the future.

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We recently launched Franchise Scorecards and are excited to share the news! The franchise scorecards, part of FranConnect’s Operations platform, equip brands with a complete view of the health of a unit at your fingertips helping franchisees drive unit-level economics. Anyone involved with franchise field visits likely agrees that the prep work for a visit can be daunting. It seems to take hours, pulling information from different systems to end up with questionable economic insights. Additionally, comparing one unit against the average of their peers is nearly impossible without having key performance metrics identified.

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At a recent franchising conference, we were lucky enough to sit down for interviews with a variety of senior executives from the FranConnect customer base. This included franchise brands of different sizes and from different industries.  We asked them what business challenges are most important for them to solve using technology. It was great to know how they are getting so much value from FranConnect, but it was also enlightening to hear some of the common themes that surfaced. Here are four of them, with actual soundbites from those customer interviews. For the full catalog of interviews, check out our Testimonials Resource Center.

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Written by Keith Gerson, CFE – Gerson Advisory Services

As a franchisor, it can feel awkward to refer to your franchisees as customers, right? But by and large – they really are. As the franchisor, you can control the things that are defined in your franchise agreement, but at the end of the day these franchisees are not your employees. Thus, influencing what they do daily and dictating how they run their business is entirely up to them.

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