Franchisees face unique challenges when their business performance declines. They have to balance the expectations and standards of the franchisor with the needs and preferences of their local market. As a consultant, you can help them overcome a downturn by following these six steps:
The first step is to understand the root causes and the extent of the downturn. You can use various tools and methods to analyze the financial, operational, and customer data of the franchisee. For example, you can compare their sales, costs, margins, and profitability with the industry benchmarks and the franchisor's goals. You can also conduct surveys, interviews, and observations to identify the pain points and opportunities of the franchisee's staff and customers.
The first thing is to go back to basics. Are they doing the standard marketing checklist items to generate leads (calls/emails/networking events//etc.)? Are they spending a sufficient amount to generate leads? Are they getting referrals and have they analyzed their repeat customer metrics? Most franchisors measure customer satisfaction (ie Net Promoter System/Mystery Shops.) Are there any red flags there? What does their staff look like? Do they have the right people in the right seats? Not everyone can close. Using a tool like DISC/Zorakle is a good way to identify the right fit. A good Franchise Coach will work with a zee to follow their biz dev checklist, invest in marketing consistently, and to coach their sales staff.
To help a franchisee overcome a downturn in business, the following approaches can be effective: Agile Management: Adopting agile methodologies can be beneficial. This approach focuses on forming small, entrepreneurial teams that are closely aligned with customer needs, allowing for more adaptive and responsive strategies during crises. Frontline Management Involvement: Rather than top-down directives, involve frontline management in identifying and setting up initiatives. This empowers those closest to the operational challenges to develop and implement practical solutions.
The next step is to evaluate the franchisee's compliance and alignment with the franchisor's system and strategy. You can review the franchise agreement, the operations manual, the marketing plan, and the training program to see if the franchisee is following the best practices and standards of the franchisor. You can also check if the franchisee is leveraging the resources and support provided by the franchisor. You can then highlight the gaps and areas of improvement that may be affecting the franchisee's performance.
When assessing franchisee compliance, it's key to meticulously review their alignment with the franchisor's framework. Dive into the franchise agreement, operations manual, marketing plan, and training program. Are they adhering to the franchisor's best practices? Are they maximizing the resources and support available to them? Identifying gaps and areas for improvement is crucial, as these can significantly impact performance. Let's ensure our franchisees are not just meeting but exceeding expectations, fostering a thriving business ecosystem!
The third step is to prioritize the actions that will have the most impact and feasibility for the franchisee. You can use a matrix or a framework to rank the actions based on their potential benefits, costs, risks, and ease of implementation. You can also consider the urgency and importance of each action for the franchisee's short-term and long-term goals. You can then create a realistic and actionable plan that addresses the most critical issues and opportunities.
For step three in elevating franchisee success, specificity is key. Consider, for instance, a digital marketing campaign. Evaluate its impact on reaching new customers versus cost and ease of execution. Is this in line with the franchisee's immediate goals or long-term growth? Such targeted analysis leads to a practical plan addressing vital areas. Let's empower our franchisees with focused strategies for tangible results.
The fourth step is to communicate the plan to the franchisor and the franchisee. You can use a clear and persuasive presentation to explain the rationale, objectives, and steps of the plan. You can also highlight the expected outcomes, benefits, and challenges of the plan. You can then solicit feedback, input, and approval from both parties and address any concerns or questions they may have. You can also establish the roles, responsibilities, and expectations of each party for the execution of the plan.
The fifth step is to implement the plan with the franchisee. You can provide guidance, coaching, and support to the franchisee and their staff throughout the process. You can also monitor the progress, results, and feedback of the plan and make adjustments as needed. You can also facilitate the communication and collaboration between the franchisor and the franchisee to ensure consistency and alignment. You can also celebrate the wins and recognize the efforts of the franchisee and their staff.
In step five, implementing the plan with our franchisees is crucial. Offer consistent guidance, coaching, and support to both franchisee and staff. For example, if implementing a new customer loyalty program, closely monitor its adoption and impact. Keep an eye on progress, results, and feedback, ready to tweak strategies as needed. Facilitating open communication between franchisor and franchisee ensures alignment and consistency. Importantly, let's celebrate every win, big or small, acknowledging the hard work and dedication of the franchisee and their team. These moments of recognition fuel motivation and drive further success.
The final step is to evaluate the outcomes of the plan and measure its impact on the franchisee's performance. You can use various indicators and metrics to assess the changes in sales, costs, margins, profitability, customer satisfaction, retention, loyalty, referrals, and market share. You can also collect feedback and testimonials from the franchisee, their staff, and their customers to gauge their satisfaction and engagement. You can then report the findings, insights, and recommendations to the franchisor and the franchisee and discuss the next steps and opportunities.