More profitability as a franchisor? Help your franchisee earn more!

As an entrepreneur, you can increase your returns in three ways:

• more customers
• higher revenue per customer
• cost containment

As a franchisor, your partners are your customers. Want more returns? Make sure they become more successful!

If they achieve more revenue, your franchise income will increase. Additionally, your concept will become more attractive to new franchisees, and you’ll gain more economies of scale. Fortunately, there are practical steps to achieve this.

Many franchisees operate out of passion

Franchisees often join a concept out of passion for a particular product, such as coffee, or a service, like psychology. Their focus is on daily operations. As a franchisor, these are ideal partners. People who are 100% committed and fully support the product or service. However, this passion often means other aspects don't quickly come to light, such as optimizing costs and striving for more success. This is precisely where a great opportunity lies for the franchisor!

If we ask a franchisee how they are faring financially, they often know their daily sales or bank balance. Franchisees are often unaware that this information is insufficient to gauge their true financial standing. In short, the entrepreneurial profit of the franchisee is influenced by the concept, location, and the entrepreneur. Increasing sales or gross margin and managing indirect costs (such as staffing) are areas where franchisees have significant control. Their influence often extends further than they think, especially when they actively manage aspects that enhance returns.

Look at the administration of franchisees!

To coach effectively on returns, we advise franchisors to gain insight into their partners' administration. By doing so, as a franchisor, you can advise them adequately. You can then look not only at sales but also at (in)direct costs. By comparing with other partners, it quickly becomes clear where advantages can be gained. Discussing this makes it clear to everyone how the best partners control certain costs. This offers inspiration for other partners and also for the franchisor to improve the overall concept.

Make returns & potential transparent

We advise franchisors to provide tools to their partners that allow them to quickly and easily gain insight into returns. Do your partners know how much more they would earn by selling to one extra customer per day? Training, coaching, and (financial) models help provide such insight. This increases their awareness of all the opportunities still present. A partner with passion for the trade is good. A partner who offers what their customer wants is even better! And what more could you want as a franchisor than a partner who makes the customer, themselves, and you financially happy?

Train your franchisees to improve their returns

Want to know how we help franchisors and franchisees run more successfully? Check out the master in franchise page, or fill in the form below. We would love to discuss how we can further increase the returns of your concept!