Home of the Golden Arches, Starbucks, and Wendy’s to name a few. Nobody does franchising like the Americans! So, I travelled across the pond to attend the annual IFA conference in Las Vegas in February. At the convention, I picked up a few tips and tricks – Here are my three big take-aways, which got me questioning my role and responsibilities as a franchisor.
Franchise support
Over the course of this week, I’ve been really thinking about franchise support. As a franchisor, you find yourself asking, ‘What support should we provide?’. At Walfinch, we pride ourselves on our internal NSO (National Support Team) – all our franchisees receive initial training, providing them with a multi-facetted view of a successful home care business.
But at the IFA, we were asked to shift our perspectives from franchisor, back to franchisee. We asked ourselves, ‘What do the franchisees need from us?’ How does that support look? Is it ongoing or on-demand? Are there ways of systemising this support?
This thought exercise really helped us think about our responsibility as franchisors – And the work that is required from both the franchisee and franchisor, for our businesses to flourish collectively.
Responsibility and unit level economics
As we’ve started to understand, a franchisor that takes responsibility is a good franchisor. So – Let’s talk cash. A responsible franchisor will be clued-up when it comes to Unit Level Economics.
Regardless of what you do, franchising is a business venture – and a high-quality service or product cannot be sustained, without a healthy profit. A good franchisor will understand this and ensure their profitability. Because, as a franchisor, you’re not just looking after yourself.
So, how does this look in practice? It means regularly review the gross and net profit margins with your support team and break down franchisee goals into daily, weekly and quarterly targets. Identify the areas that need a little more fine-tuning, as opposed to turning a blind eye. A good franchisor will be able to handle this responsibility – A great franchisor will thrive on it.
AI symposiums
I’ve loved attending exclusive events designed to spotlight the latest advancements in AI technology. It got me thinking about AI’s role within franchise support. Contrary the popular belief, the introduction of AI systems into franchising is NOT the franchisor palming-off their key responsibilities. It’s actually quite the opposite.
By using AI technology, franchisors can monitor franchisee activity, requests and data, and provide more support when it is required. Instead of the franchisor taking the scatter-gun method when it comes to support, they can take a sniper-shot approach – and transform their business, the result is better profitability all around.
The IFA revealed that the franchising landscape in UK has a long way to go! But by building connections across the pond, sharing knowledge and working collaboratively, we can make real leaps in franchising.
I have come back from my trip with a refreshed mentality, which has got me asking questions like: ‘How can I do more for my network to help them to thrive?’ and ‘What are my greater responsibilities as a franchisor?’. Because taking responsibility for a network, for all the trials and tribulations that come with that, re-frames the challenging aspects of franchising as opportunities to build, grow, and thrive.
