Formula Check-up: Update & optimize your organization

Do you want to assess your formula against current conditions and evaluate its completeness? Are you also curious if your documents and processes still meet the requirements set by franchisees and legislation? Then a formula check-up might be something for you. With a formula check-up, you make your formula future-proof and provide tools to further enhance the profitability and quality within your organization. A formula check-up is always customized. If you are interested in a full check-up, it will cover the following components:

Completeness of documented business systems

Documented systems allow you to streamline business activities and maintain consistency across all business locations. A system is a collection of processes, resources, and people. Processes are sequences of steps, further described in Standard Operating Procedures (SOPs) and clear Standard Operating Checklists (SOCs). (For more information, see: The difference between Systems, Processes, SOPs, and SOCs.)

For a successful company, it is not essential to have everything documented in detail. However, if certain areas within the organization frequently encounter issues or frustrations, it is often a sign of missing, incomplete, or incorrect systems and processes. During a formula check-up, we identify which ones these are and provide a concrete implementation plan to address them. We look at all aspects of operations:

• Product/Service & Assortment
• Marketing & Sales
• Automation
• Procurement & Logistics
• Training & Education
• Guidance & Formula monitoring
• Administrative Organization

Check-up of financial agreements (in case of franchising)

For a franchise formula, we map the impact of the current financial agreements using the Franchise Exploitation Model. The basis for this is the franchise fee system. We combine this with historical data from your organization, including completed and planned investments, costs, and revenues. This way, we make the individual revenue model of both franchisor and franchisee transparent. The connection between the profitability of franchisor and franchisees also allows us to evaluate whether the current fee system remains balanced.

The manual

The manual should be the core of every organization and is inherently a dynamic component of the formula. Depending on the organization, it can consist of various parts, such as a quality manual, a franchise manual, a visual merchandise manual, etc. Our advice is to update the manual at least once a year, preferably continuously and throughout the year, depending on the speed of developments within the franchise formula. By reviewing the content, we can assess whether your manual is complete and current.

Additionally, if you are a franchise organization, we perform a consistency check of the content of the franchise manual with the franchise contract due to the legal link between the two documents.

If desired, we can advise you on creating a specialized online manuals and communication system for easier maintenance and improved internal quality management.

Franchise contract (if applicable)

Contractual agreements are made at a specific time based on the concept and knowledge of the moment. Over time, due to unforeseen circumstances, it is often necessary to amend agreements—for instance, due to new legislation or changes in the formula and the way of collaboration.

It is therefore important to have the franchise agreement checked regularly and adjusted to practical changes. A logical moment to implement an amended franchise contract is at the end of the contract period with a franchisee. This is when the franchisor and franchisee typically enter into a new agreement for the subsequent period. Mutual trust is of importance here. The renewed contract will then be a clear continuation of the previous version with logical and reasonable adjustments for both parties. 'Unreasonably burdensome' changes should not occur in principle.

Result of the formula check-up

The completion of the formula check-up is an advice regarding the further approach and professionalization of the organization, as well as a plan of action for realization. In other words, what can or must be improved or adjusted to not only remain sustainably successful but becomes even more successful. The action plan also indicates the advised timeline or phasing of the required actions. Where possible, we provide immediate advice to achieve 'quick wins.'

With the action plan, the foundation is laid. The next step is to refine the growth trajectory: securing choices in positioning and value proposition, translating mission/vision/core values into concrete goals and KPIs, and documenting them in 2–3 sessions in a realistic roadmap. You can read about what this trajectory looks like in the article Refining Growth Strategy.