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How do you Stack Up as a Franchisor?

by Ed Teixeira

At least once a year a franchisor should put ego aside and do a self evaluation of their franchise program

Throughout my franchise business career, I would often state: "I don't like surprises because most aren't good." For that reason, I was always a proponent of conducting an annual introspective review of our franchise program. This meant evaluating our performance for the year and identifying what was achieved and what wasn't. However, to do an effective review meant casting some ego aside and putting on a thick skin. This annual review process didn't mean that issues or problems that might arise during the year wouldn't be addressed ASAP, but rather, it was important to take the opportunity to determine how the company performed for the year?

The participants in this annual evaluation should include a blend of franchisees or franchisee advisory council or association members, franchisor staff especially those in operations, certain vendors and suppliers and our corporate based executives. The process would be somewhat informal and would include gathering information in specific areas. Some of the information can be easily gathered, while other information might require some digging. In terms of the best source for obtaining the information, I would utilize the groups I mentioned previously. What's important is to gather information and utilize it to construct a presentation for franchisor staff and franchisees.

Areas to Focus On:

  • How did we perform from a franchise development standpoint? Did we achieve our franchise growth targets and how well did our lead generation programs perform? It's very important to quantify the results of our franchise development program. If franchise brokers are used to review their performance.
  • Are our product or service offerings competitive? Are we missing opportunities by not upgrading in this area?
  • Are there any significant franchise relations issues that might be hidden from view? It's very important to expose any underlying issues that might exist.
  • How do we match up to our competitors? What are our strengths and weaknesses compared to them? Field staff, franchisees and vendors would be the best source of feedback on this subject. This subject requires that ego be cast aside.
  • What are top 5 priorities or challenges the franchise organization faces?

There are more items that can be added to the list, but the key objective is to gain feedback from those who are a part of the franchise and utilize the information to complete an annual review of the franchise performance.

 

2015 FranchiseKnowHow, LLC

Ed Teixeira is the President of FranchiseKnowHow.com and Chief Operating Officer, FranchiseGrade.com. He is a former franchise executive and franchisee. He can be contacted at 631-246-5782 or at  franchiseknowhow@gmail.com

 

 

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