Training to optimize the returns of your franchise

There are three ways to increase the profitability of a business: the number of customers, revenue per customer, and cost savings. The theory is simple, but putting it into practice is often much more challenging.

As a franchisor, franchisees are your most important customers. When they achieve better profitability, it usually leads to more franchise fee income for you. This, in turn, results in better profitability for you as the franchisor. Through our training, we provide you and your franchisees with practical tools to make profitability transparent and improve it.

Training for improving franchisee profitability

Franchisees often join a franchise concept out of their passion for a product or service. This passion makes them excellent at creating satisfied customers. They usually have a good grasp of daily business operations. Ideal entrepreneurs for you as a franchisor because they fully support the concept.

Due to their passion, franchisees are often less aware of their financial standing. They work so hard in the business that they lack the time to work on the business. For example, they may have no idea what extra revenue means for their own income when they help just one more customer a day or consistently offer a specific supplementary product or service to customers. It’s a shame because, with often simple actions, the profitability of a location can be significantly improved.

Training for improving franchisor profitability

Many franchise organizations focus mainly on strategic growth rather than organic growth. But what exactly do we mean by this? With strategic growth, the focus is on recruiting new franchisees to fill in the gaps in the market. With organic growth, the focus is on improving the profitability of current franchisees so that they generate more revenue, achieve cost efficiency, and perhaps want to open a second location. A heavy focus on strategic growth often means missed opportunities for organic growth, even though organic growth leads to extra income for both franchisor and franchisees. A positive side effect is that this also directly leads to a better relationship between franchisees and with the franchisor. In short, organic growth certainly deserves your attention! Read more about multi-unit franchisees in this article.

Do you, as a franchisor, know where you want to go with your organization? And do all franchisees know this too? What are, for example, your organization's mission, vision, core values, and objectives? Has this been translated into concrete actions whose effects are measured using specific KPIs? Do all your franchisees support your plans and vision? These are just some of the factors that influence the success of your franchise organization.

Success is a moment. You can lose it or further increase it. The development of a franchise concept must always continue. New opportunities must be seized. By actively working with your franchisees to improve profitability, you make this happen.

Training in collaboration with former McDonald's franchisees

If there is one organization that has elevated optimizing profitability to an art form, it’s McDonald's. That is why we offer this training in collaboration with two former McDonald's franchisees. Together, they have managed a total of three McDonald's locations. Based on best practices from McDonald's and other franchise organizations, this training has been developed for both franchisors and franchisees.

The focus of this training is not only on the financial aspect of the business but the enterprise as a whole. Better financial results naturally follow when daily operations are improved. Therefore, we start with the franchisor and franchisees by making the current situation clear. This prompts them to think about how things are currently done, creating concrete actions that can be taken to achieve better results. Then, we work with the franchisor and franchisees to identify their desired situation. From the insight created, the actions to be taken by the franchisees and/or franchisor become quickly evident.

As one of our clients puts it:

“Within our formula, we greatly enjoy applying this training. The very first advantage is the improved insight and awareness among franchisees regarding the financial dashboard. We have now directly integrated the training into the education of our starting franchisees. My expectation is that this will lead to better results through more focus on results-driven entrepreneurship.”

Various formulas are currently deploying this training successfully. Revenue increases ranging from 10% to even 150% are not uncommon. Has this piqued your interest? We would be delighted to speak with you to further increase the profitability of your formula!