Established Franchise Organization

Growth Strategy

Adding franchisees to your system is key to growth.  Three basic expansion routes are conversions, new operations, and company owned stores.  Each route has distinct advantages and disadvantages and your growth strategy should include the mix that is right for you.  I can explain these routes, help you identify where to attract prospects for each, and formulate a plan to manage your growth.

A good measure of the value of any franchise system is the percentage of franchisees who own multiple territories or locations.  As your brand grows, this will become more important as prospective franchisees will use it as a predictor of the success of your brand.
 

Technology Plans Review

Often a franchisor will outsource IT development or utilize in-house talent for their system design and programming needs.  This is fine, however, if those responsible for the design do not have prior franchising experience, oversights can be very costly.  No franchisor wants to learn that their IT infrastructure or systems must be overhauled when they have 500 offices using the applications.  I have designed and implemented royalty collection systems and other management support systems.  Based on my experience, I can review your technology plans and make suggestions for improvement BEFORE you invest resources in development.  If the systems are already developed, I can still make suggestions that will facilitate smoother growth as you expand.
 

Management Performance Metrics

As a franchise business grows, measures must be created to assess progress toward growth goals.  These performance measures not only apply to the sale of franchises, but also to various operational areas within the product or service industry.  Establishing a measurement system that allows Regional Directors to guide their franchisees toward profitability while allowing senior management to view progress toward stated goals can be simplified somewhat by someone who has been there before.  I can help you plan the performance measurement systems for the anticipated growth so they don’t have to be re-designed as the brand grows.
 

Revenue Stream Protection

The profit motive of franchising is to secure a revenue stream from franchisees operating within your system and utilizing your brand name while strengthening the brand name.  An essential element from the franchisor perspective is ensuring franchisees accurately report revenues on which they owe royalty.  If the growth strategy includes conversions, special stipulations may exist so those franchisees do not pay royalty on existing customers prior to affiliating with your brand.  A royalty collection system must be designed to ensure each franchisee is not underreporting so you collect the full revenue stream you are entitled to.
 

Organizational Support Structure Guidance

In young franchise organizations, it is common for a few people to hold numerous offices with a wide range of responsibilities.  As the organization grows, additional staff members are added to adequately support the franchisees in the field.  The aspect of supporting franchisees is one of the most difficult for business owners who don’t have prior franchise system experience.  Building on the experience of someone who has previously developed these support structures saves time over the trial-and-error method.