The Franchise Evolution Formula.

Test, Measure, Evaluate,

Evolve and Repeat

Let’s assume we have the real foundations of a Proven Small Business System,

How do we start the evolution into an actual working, growing functional franchise network?

There is a strange collaboration of commerce, science, emotional intelligence, and art that blend together to create a successful franchise network. 

Let me explain.

·      Commerce. 

Every franchise model has to be a valid commercial venture.

The franchisees have to make money, but the franchisor has to make money as well. The commerce has to deliver a win/win for all involved.

This is not art or art's sake. Franchising isn’t a charity.

The numbers have to be achievable for everyone involved in the business.

·      The Science 

The Franchisor requires a great deal of science in their thinking to evolve the business into a growing franchise network. 

The definition of Science:

the systematic knowledge of the physical or material world gained through observation and experimentation.

The franchisor should embrace their inter mad scientist and systematically test and measure their businesses.

There is one scientific law that is essential for all franchisors to accept as actuality is

“The Law of Probability” 

What is the basic law of probability?

The law of probability tells us about the probability of specific events occurring. 

The law of large numbers states that the more trials you have in an experiment, then the closer you get to an accurate probability.

A great franchise system is consistently using The Laws of Probability to give their franchisees the most likely chance of success. 

Reducing the risk of failure of the franchisee is a key responsibility of every franchisor. 

All systems within the network should be designed to give the most likely successful outcome for the franchisee which in turn leads to the success of the franchisor.

·      Emotional Intelligent 

Commerce and science are very logical but of course, we require people to run the business. 

Ironically, with all the logical foundations based on commerce and science.

It’s the emotional energy of the people that drives the business on every level from franchisors, master franchisors, franchisees to the staff. 

It requires a high level of emotional intelligence to understand the emotional requirements of a large group of independent family business owners.

To make this tougher, This is a constantly changing need, the network grows the emotional energy changes.

It takes emotional intelligence to understand your franchisees and lead them to success.

·      Art

How does growing a business equate to Art? 

There is a special creative skill that can turn any idea into reality. It takes imagination to visualize the final result.

 I found that creating a visual image, then building it into a recognizable brand is parallel to writing a song that everyone knows. 

How do we make this collaboration a reality?

There is a proven formula to evolve the systems within your network.

This works on the Franchise System as a whole or if you break it down to individual systems within the system. 

Example:

A new franchise business model system can be tested as a “whole” concept to find the weaknesses and strengths of the systems. 

If you have an Acai Smoothie Business, then you would need to have a plentiful constant supply of Acai berries. 

 Or test the model in various climates to test the variation of buying patterns and therefore franchisee turnover in consideration to climate and weather changes.

 Alternatively, use it in the ongoing evolution of the systems within the systems.

This formula is effective on the systems on every level.

An established business can use this formula to evolve the systems already in place or build new systems whenever they are needed. 

We are living in uncertain times and the only certainty is there is a requirement for all businesses to adapt quickly to change. 

Franchisors shouldn’t do “The Hail Mary” plays , that require their franchisees to use untested high risk systems. 

This Formula can be fast-tracked new systems if needed and will give the most likely successful outcome.  

As I said it truly is a strange collaboration of commerce, science, emotional intelligence, and art that blend together to create a successful franchise network. 

Most franchisors can't pull all these elements together.

There is one certainty for all franchisors in our uncertain times, evolve, or watch your business die.

If you need help reach out.

Robert James

Bestselling Author :

Balance: How to Make Your Business and Family Life Work Together.

The Ultimate Guide to an Extraordinary Service Business