Introduction

Expanding your franchise network from a solid base makes sense and will add value to your brand. Here are some ideas that might help based on the 3 pillars (1)recruitment process – (2)induction training – (3)business launch & performance review.

Steps

Step 1   Recruitment process – to onboard only the prospective franchisees that meet or come close to your ‘ideal’ profile criteria, especially during the first 12 to 18 months. A recruitment process should be informative and easy for prospects to understand and know what is expected of them as they progress. Knowing what is expected from them also applies very much to managing the day-to-day business model, which will inevitably vary depending upon its complexity, and once the Guest Day is completed prospects must understand their role & responsibilities and convince you that they have the ability, skill set and funds that are required to be successful.

Step 2   Induction Training – This is the time when you have the franchisee’s undivided attention and we recommend using it to good effect. However, from time to time we find inexperienced franchisors undervalue the importance of the induction time frame. Franchisees have bought into a tried & tested business method and so they must acknowledge that and as a ‘given’ and implement those systems as shown during training and outlined in the operating manual so that they can concentrate on the elements of the business they can and should influence to increase sales & profitability. It is also likely that, if you have had your franchise agreement prepared by a BFA-affiliated lawyer, the agreement only becomes effective when you officially confirm the franchisee has passed the induction training process.

Step 3  Business Launch & Performance Review – The first 3 months of any new business are important and can be critical. It is a nervous time when new franchisees seek confirmation that they have made the right decision. A well-managed and executed launch will get the business off to the successful start everyone was expecting and act as reassurance to the franchisee that they did make the right investment decision. Another very useful exercise after 3 months is to compare the franchisee’s actual performance against the business plan, especially the Key Performance Indicators. That review indicates any re-training or additional support that might be needed for the franchisee and how effective the business launch has been so that you and your franchisee can plan the actions and activities needed for the next 3 to 6 months.

For more advice and guidance regarding franchise network foundations contact The Franchise Company