Franchising is a popular way to expand your business and generate more income, but it also comes with some challenges. One of them is how to measure the performance of your franchisees without interfering with their autonomy and creativity. In this article, we will explore some tips and tools that can help you achieve this balance and improve your franchise system.
Performance measurement is essential for any business, but especially for franchising. It helps you monitor the quality and consistency of your products and services, identify the strengths and weaknesses of your franchisees, and provide feedback and support to help them grow. It also helps you evaluate the effectiveness of your franchise model, strategy, and marketing, and make adjustments as needed. Performance measurement can also motivate your franchisees to achieve their goals and reward them for their achievements.
Franchisees can measure performance without sacrificing autonomy by: Clear Metrics: Define agreed-upon performance metrics aligned with franchise goals.Local Customization: Allow flexibility to adapt metrics to diverse local conditions. Training and Support: Provide ongoing training and support to enhance capabilities.Technology Solutions: Implement point-of-sale systems and CRM software for data insights. Open Communication: Foster transparent communication to address challenges and share successes. Reward-Based Systems: Introduce incentives and recognition for achieving milestones. Benchmarking: Encourage benchmarking and best practices sharing among franchisees.
Boa parte do sucesso de uma unidade franqueada está associado à sua aderência ao Sistema de Gest?o da Rede (Processos, Procedimentos, Manuais, Treinamentos, Cultura, Softwares, demonstrativos de resultado). Existem no mercado plataformas tecnológicas que possibilitam realizar a medi??o do desempenho em diferentes áreas, sem no entanto ser invasiva. A SULTS é um exemplo deste tipo de plataforma.
La importancia de la medicion del rendimiento en un emprendimiento que proviene de una franquicia, es vital, ya que al momento que tu adquieres el derecho de franquicia existe un apartado (legal) que te se?ala un rendimiento y un retorno) bajo los lineamientos que el MASTER FRANCHISE, establece en su estrategia para promover y vender su marca. Cuando tu cumples con los parametros que te han se?alado y que has acordado, deberias obtener el rendimiento esoerado y tu recuperacion, estos lineamientos estan echos sobre las bases de un caso 100% de exito, mas sin embargo no siempre se cumplen, ya que la tropicalizacion es un factor que en algunos casos demerita el suceso.
Franchise businesses can enhance performance without sacrificing autonomy by balancing standardized processes and local flexibility. Lean in where you can and know your operations can excel. You are running your own business so pull the unique levers that can positively impact profitable sales but still maintain standards and align with the brand strategy.
Franchisors should publish rankings and averages for different KPI’s including sales. Competition is a great way to motivate most every entrepreneur I know!
Before you can measure the performance of your franchisees, you need to set some clear and realistic standards that reflect your brand values, vision, and objectives. These standards should be based on the key performance indicators (KPIs) that matter most for your business, such as sales, customer satisfaction, profitability, market share, retention, and growth. You should also consider the specific characteristics of each franchise unit, such as location, size, competition, and demographics, and adjust the standards accordingly. You should communicate these standards to your franchisees and explain how they will be measured and evaluated.
Performance standards are set while keeping the Franchisors KPI (Key Performance Index) in mind. For majority of the Franchisors the main KPI would be the following : 1. Brand Visibility 2. Sales Targets 3. Quality Delivery (Customer Satisfaction) In Brand Visibility it could be about the location Covering - Restrooms / Clean Environment / Proper Signage / Workers dress code etc. In Sales it would be about footfalls / Collections made and the amount of Royalty that has been accrued. In Customer Satisfaction it could be about how the customer was treated what was sold and how it was sold etc.
O processo de valida??o de um modelo de negócios visando transformá-lo em franquia já considera todos os Indicadores: Indicadores de Consequência = Resultado da Empresa - Faturamento - Lucro - Satisfa??o de clientes Indicadores de Caminhos = Objetivos Comerciais - Vender mais itens do Mix - Vender produtos de maior valor agregado - Diminuir descontos - Vender a mais clientes - Vender mais delivery Indicadores de Causas = Atividades Operacionais - Quantos panfletos foram entregues? - Quantos panfletos foram resgatados (cliente comprou)? - Quantos clientes foram atendidos - Quantos clientes com item adicional? - Tempo preparo delivery?
Teniendo la media de los locales mejores de la marca, lo analítico de la marca y la realidad de los locales, se debe crear una tabla de rendimientos y variables que nos dé datos y pistas de si estamos siendo buenos en rendimiento o que variable debemos mejorar para optimizar esfuerzos.
This is also where it's important for you, as a franchisor, to have clear, set processes in mind and communicate them effectively - such as a process/guidelines for addressing negative customer reviews. Find a healthy balance of guiding your franchisees without dictating.
Definir padr?es de desempenho é crucial para o sucesso de uma franquia, envolvendo a especifica??o clara e mensurável das expectativas e metas a serem atingidas. Isso inclui a elabora??o de diretrizes detalhadas sobre vendas, atendimento ao cliente, opera??es e gest?o financeira. Estabelecer benchmarks realistas e alcan?áveis, alinhados com a vis?o da marca, é fundamental para avaliar o desempenho de cada unidade. Além disso, a comunica??o efetiva desses padr?es, juntamente com a oferta de treinamento contínuo e suporte, é essencial para capacitar os franqueados a atingirem e superarem essas metas, promovendo a consistência e a excelência em toda a rede de franquias.
The next step is to collect the data that will help you measure the performance of your franchisees. There are different methods and tools that you can use for this purpose, such as surveys, audits, reports, benchmarks, dashboards, and analytics. You should choose the ones that best suit your needs, budget, and capabilities, and that provide you with accurate, timely, and relevant information. You should also involve your franchisees in the data collection process and ask them to share their feedback, suggestions, and concerns. This will help you build trust and transparency with them and encourage their participation and cooperation.
Idealmente todos os dados transacionais, pesquisas de satisfa??o, consolida??o de resultados financeiros, frequência e avalia??es da Universidade Corporativa, Consultorias de Campo e Auditorias, devem convergir para uma aplica??o de BI/BA (Business Inteligence/Business Analytics) que, através de dashboards previamente estruturados, acompanha o desempenho de toda a rede. Esse tipo de acompanhamento deve ser realizado diariamente, com informa??es em tempo real ou, no pior cenário em D-1(dia anterior), de maneira a poder responder rapidamente e corrigir eventuais desvios entre planejado e realizado.
One effective way for franchisees to measure their performance is through key performance indicators (KPIs) that align with the franchisor’s goals. These KPIs should be clearly defined and communicated, fostering a sense of transparency and accountability. Metrics such as revenue growth, customer satisfaction, and operational efficiency can provide valuable insights without compromising the autonomy of franchisees.
Establishing precise, attainable benchmarks aligned with your brand's ethos and goals is crucial for assessing franchisee performance. These benchmarks should center on vital KPIs relevant to your operations, including revenue, client contentment, profit margins, industry presence, customer loyalty, and expansion rates. Tailoring these criteria to account for the unique aspects of each franchise, such as geographical position, scale, competitive landscape, and target demographic, ensures fairness and relevance in evaluation. Clear communication of these benchmarks to franchisees, detailing the measurement and appraisal process, is essential for transparency and mutual understanding.
Once you have collected the data, you need to analyze it and compare it with the performance standards that you have set. You should look for patterns, trends, gaps, and opportunities that can help you understand the performance of your franchisees and your franchise system as a whole. You should also use some metrics to quantify and rank the performance of your franchisees, such as scorecards, ratings, rankings, and awards. These metrics can help you recognize the best performers, identify the underperformers, and provide incentives and recognition for improvement.
As unidades franqueadas devem ser agrupadas considerando três critérios principais: 1) Tempo de abertura 2) Volume de Faturamento 3) Formato da opera??o (quiosque, loja shopping, loja rua) O tempo de abertura é importante, pois indica o nível de maturidade e, o percentual de aderência ao Sistema de Gest?o da Rede. Por exemplo: O prazo previsto para retorno sobre o investimento é de 36 meses. Se a franqueada n?o tiver em até 1 ano 100% de aderência ao sistema, dificilmente o tempo de retorno se cumprirá). Feita a segmenta??o baseada nos 3 critérios, mensalmente a rede deve ser rankeada de maneira a que todos possam comparar sua atua??o/resultados
The final step is to share the performance data with your franchisees and provide them with constructive feedback and guidance. You should do this in a respectful and supportive way, highlighting their achievements, acknowledging their challenges, and offering them solutions and resources. You should also invite them to share their own perspectives and opinions on their performance and listen to their needs and expectations. You should use different channels and formats to share the performance data, such as meetings, calls, emails, newsletters, and portals. You should also do this regularly and consistently, and not only when there are problems or issues.
In order to assist a franchisee who is under-performing can be awkward for a Franchisor. One option would be to wave the Franchise Agreement under the franchisee’s nose to remind them of what they agreed to on paper. However, this can create a lot of negativity on both sides, especially if the franchisee is doing their best and just needs some guidance and “hand holding” and is believed to be a success in the longer term. The Franchisor should allocate some additional HQ staff resources towards helping that franchisee get back on the right track at the earliest. Sharing total franchise performance stats. should be done through emails, in franchisee /Franchisor meetings, on portals etc. and should be posted with both good and bad news.
In franchising, effective performance measurement serves as a vital tool for ensuring operational excellence and uniformity across locations. It facilitates the discovery of areas where franchisees excel or need improvement, guiding targeted support and development. This process is crucial for refining the franchise system, optimizing strategies, and enhancing marketing efforts. Furthermore, it acts as a motivational driver for franchisees, encouraging goal attainment and recognizing their success, thereby fostering a culture of achievement and continuous growth.
Compartilhar dados de desempenho dos franqueados requer uma abordagem transparente e colaborativa. Estabelecer canais de comunica??o regulares, como reuni?es periódicas e plataformas online dedicadas, permite uma troca fluida de informa??es. Ao apresentar os dados de desempenho de forma visual e compreensível, destacando tendências e áreas de oportunidade, os franqueadores podem envolver os franqueados na análise conjunta. Além disso, promover a colabora??o na identifica??o de desafios e no desenvolvimento de planos de a??o mensuráveis é essencial.
O compartilhamento dos dados de desempenho é crucial para o alinhamento das informa??es por parte da equipe. Inicialmente, creio ser importante passar o resultado da avalia??o da opera??o para o franqueado, ouvir dele sua opini?o sobre, e depois repassar para toda a equipe de trabalho, momento no qual deve-se dar oportunidade para que todos se manifestem e, também, entendam como o resultado interfere no resultado da unidade franqueada. Finalizando esta etapa, toda equipe deve sair alinhada com os objetivos e consciente do papel de cada um e da equipe como um todo.
Performance measurement is a powerful tool for franchising, but it should not compromise the autonomy and creativity of your franchisees. You should respect their individuality and diversity, and allow them to make some decisions and choices that suit their local markets and customers. You should also encourage them to innovate and experiment with new ideas and approaches, as long as they align with your brand standards and values. You should foster a culture of collaboration and learning among your franchisees, and create a network of support and exchange. By doing this, you can create a win-win situation for both you and your franchisees, and enhance the performance and success of your franchise system.
Not sure what is meant by "How can franchisees measure their performance without sacrificing autonomy?" Since franchising is an interdependent commercial and contractual arrangement where the franchisee is the local market expert who has a direct consumer relationship and the franchisor sets the operational standards for the entire franchise systems and the support that goes with that. In terms measuring you must remember that the almost every franchise agreement has duty for the franchisee to report sales and financials to the franchise systems requirements and a good franchisor will get systemwide reporting of KPIs and benchmarks to measure unit level performance. So not a lot of autonomy with an interdependent franchise relationship.
This "answer" starts with a false premise - that measuring performance could impact autonomy. The level of autonomy granted to the Franchisee is dictated in their Franchise Agreement - there are likely operational and safety standards among other things, that limit the "autonomy" of a Franchisee. Many Franchisors encourage creativity within the brand standards, but it is all in the pursuit of performance. Franchisees and Franchisors are both ultimately in business to be financially successful, and the only way to know that is to measure performance. Performance can be measured in gross revenue, profit, number of customers, average ticket, number of active members, etc - but as the old saying goes, "what gets measured, gets managed."
In my experience most of the franchisees are depend on organization standards, if a entrant or a conventional business person has to do growth in his business he could have followed his own maths why will he opt for franchisee, so brands will anyway allow partner ideas while going with promotions hence autonomy is retained, further to elaborate franchisee should decide on the ROI how swift they want financial stability in his/her business then measure the amount of efforts and activities are required accordingly the coordination between the brand and the franchisee has to be aligned.
Equilibrar a medi??o de desempenho e a autonomia dos franqueados é crucial para uma franquia bem-sucedida, exigindo uma abordagem sensível. Estabelecer indicadores-chave de desempenho (KPIs) alinhados com as políticas da marca é essencial, garantindo consistência e preservando a integridade da rede. Ao mesmo tempo, é fundamental reconhecer e respeitar a autonomia dos franqueados, permitindo-lhes espa?o para inova??o e adapta??o local. Isso pode ser alcan?ado envolvendo os franqueados na defini??o de metas e estratégias específicas para suas unidades, garantindo que as políticas essenciais sejam mantidas.
In my experience of both sides of the coin, it’s important to have working groups, the franchisor should promote collaboration amongst franchisees, and the franchisees should get actively involved, and if needed create groups. Being a franchisee can be lonely, lead to self doubt. Shared experience and reliable friends in the same boat are a lifeline, and ultimately healthy for the franchise. A classic, how do I get holidays? A fellow, relatively local franchisee can provide the oversight to keep the franchise running and being a reciprocal agreement amongst 3 or 4 franchisees can really help with balance and providing for emergency situations. It is the shared experience, the camaraderie, the friendship that leads to stronger franchises.