Formula Check-up: Update & optimize your organization

Do you want to test your formula against current events and assess its completeness? Are you also curious if your documents and processes still meet the requirements set by franchisees and legislators? Then a formula check-up might be right for you. With a formula check-up, you make your formula future-proof and provide tools to further improve the profitability and quality within your organization. A formula check-up is always customized. If you are interested in a complete check-up, it covers the following components:

Completeness of documented business systems

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

It is not essential for a successful company to have everything documented in detail. However, if certain areas within the organization regularly encounter problems or frustration, this often indicates missing, incomplete, or incorrect systems and processes. During a formula check-up, we identify these with a concrete implementation plan to solve them. We examine all aspects of business operations:

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

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

If it concerns a franchise formula, we use the Franchise Exploitation Model to map the impact of current financial agreements. The basis for this is the franchise fee structure. We combine this with the experience figures your organization has, including made and planned investments, costs, and revenues. This way, we make the individual earning model of both franchisor and franchisee transparent. The link between the profitability of the franchisor and franchisees also allows us to assess whether the current fee structure is still balanced.

The manual

The handbook should be the centerpiece of every organization and is inherently a dynamic part of the formula. Depending on the organization, it can consist of various parts. Think of a quality handbook, a franchise handbook, a visual merchandise handbook, etc. Our advice is to update the handbook at least once a year, preferably continuously and throughout the year, depending on the pace of developments in the franchise formula. We can assess whether your handbook is complete and up-to-date by reviewing its content.

Additionally, if you are a franchise organization, we conduct a consistency check on the content of the franchise handbook with the franchise contract, due to the legal link between these documents.

If desired, we can advise you on implementing a specialized online handbook and communication system for easier maintenance and better internal quality management.

Franchise contract (if applicable)

Contractual agreements are made at a certain time based on the concept and the knowledge of that moment. Over time, influenced by unforeseen circumstances, it is often necessary to change agreements. For example, due to new legislation or changes in the formula and collaboration methods.

It is therefore important to regularly check the franchise agreement and adjust it according to changing circumstances. A logical moment to implement the updated franchise contract is at the end of the contract period with a franchisee. This is when both franchisor and franchisee typically enter into a new agreement for the next period. It is crucial that mutual trust exists. The renewed contract should then clearly continue from the previous version with logical and reasonable adjustments for both parties. 'Unduly burdensome' changes should not occur in principle.

Result of formula check-up

The conclusion of the formula check-up is advice regarding 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 to become even more successful. The plan of action also provides the advised timeline for the required actions. Where possible, we naturally provide direct advice for achieving 'quick wins'.

The plan of action lays the foundation. The next step is to fine-tune the growth trajectory: securing choices in positioning and value proposition, translating mission/vision/core values into concrete goals and KPIs, and documenting them in a realistic roadmap over 2–3 sessions. You can read about how that process looks in the article Refining growth strategy.