Masterclass franchise management: the optimal collaboration

Franchisees join a franchise formula that has proven itself and is successful. For this, they pay a franchise fee and expect something in return. An important component of the success of a franchise organization is the training, education, and the implementation of franchise management.

Hard or soft franchise?

The consequence of choosing the right balance between soft and hard franchising is having more or less control over the franchise chain. In soft franchising, the collaboration often only extends to operating a shared name, logo, and conducting limited marketing activities.

Hard franchising is often the best way to achieve economies of scale by organizing things centrally and uniformly. The agreements are firm, meaning clearly defined and detailed. Additionally, through hard franchising, you have many more tools and information to guide and coach the franchisees.

Training & education

It is extremely important to offer all franchisees good training and education at the start of the collaboration. Proper training increases quality and customer orientation, two important conditions for success and continuity. The training and education are often divided into a program consisting of the following phases:

• Before the start
• During the start-up phase
• After the start-up phase (ongoing training and education)

Before & during the start-up phase, it is advisable to offer various assignments and training. Create a generic training program and then adjust it per franchisee. The qualities and needs will differ per franchisee. Often, the exact length also depends on how quickly the franchisee learns. On-the-job training can also be part of this.

After the start-up phase, it remains important to offer high-quality training and education. This is one of the motivations to join a franchise organization as a franchisee, the know-how that is shared among each other.

Franchise management

It is very important to visit franchisees regularly. This way, it's possible to coach franchisees in a constructive manner. To coach well, it's important to maintain a file for each franchisee. Think of information about the selection process, visit reports, financial data, marketing activities, and other particulars. In the initial phase of a franchise organization, franchise management often consists only of the franchisor. As the organization grows, different roles can be added.

Franchise coach

In general, the Franchise coach is the person who visits franchisees the most and provides support (on average at least 4 times a year, more frequently in case of disappointing results or crisis situations). The Franchise Coach is the spider in the web and must be able and willing to see and balance both interests, of both the franchisor and the franchisee! All (help) requests, additional requests, also from other disciplines such as marketing or Visual merchandising, come to this person for further processing to different departments. That way, this person is always aware of what is going on. Besides providing guidance, the franchise coach also has a monitoring function. Is the formula being executed as intended?

In short, the Franchise Coach functions based on two objectives for the franchisee:

1. Increase in revenue
2. Reduction in costs

In short; Improvement of returns!

Franchise manager

Not every franchise organization has both roles. However, as the organization grows and the number of franchise locations increases, it is common to appoint a Franchise Manager who is responsible for the Franchise Coach(es). On average, a Franchise Coach supervises about 15 – 25 franchisees (in a full-time position).

Visual Merchandiser

Visits locations on average 4 times a year, or more frequently if necessary. Supportive and monitoring in nature. Convincing based on benchmark data if a franchisee does not accept certain Visual merchandise changes.

Franchisor

If there are no urgent issues such as contract extensions or crisis situations, it is wise from an involvement perspective to visit franchisees at least once a year. Regardless of the situation, regardless of the number of (to be visited) franchisees.

Masterclass franchise management, become a Master in franchising!

After finding franchisees, it is of utmost importance to retain and inspire them. This can be accomplished by providing the right training and visits from franchise management. Also, the right tone of voice and frequency of communication is essential. During our masterclasses, we will optimize this process together.