Evaluating Franchise Management and Execution

Jan 31, 2013 in QSR, Retail

The growth and expansion of any franchise should be a clear indicator for success. However, this success comes with a whole new set of challenges. Specifically, franchisors struggle with consistency in execution during expansion. Franchisors and franchisees have to stay ahead of the consumer feedback curve, correcting mistakes before they reach the customer.

The following four questions are important for any franchisor managing execution:

  1. How is your network of franchisees performing and how do you facilitate open communication?
  2. How are the franchisees and individual locations strengthening the overall brand?
  3. Do you have the correct systems for measuring and collecting the right execution data?
  4. How do you measure and control quality as the number of operational variables increase?

In 2012 Business Insider posted the article Advice From Five Serial Franchisers Who Made a Killing. Many of the franchisees attribute their success to a strong relationship with the franchisors and a never ending focus on operations. These owners operate franchise locations across multiple brands and have managed to maintain consistency throughout their portfolio. For instance, Tony Lufty of MarLu Group is interested in working with brands that have, “a strong focus on restaurant operations, facility upgrades, product innovation and a laser focus on quality.”

Franchise management relies upon both sales data and human evaluation to accurately measure execution. If you operate multiple franchise locations, sales figures don’t tell the whole story; you need to know how each location is performing from an execution standpoint as well. You need to open up the lines of communication with your field team and franchisees to be sure the brand message is consistent from concept to customer.

By leveraging mobile devices through COPE or BYOD, franchisors can get more insight into their franchise management and execution through location based, real time reporting.