Monthly Archives

July 2018

Liberty Tax Services Inc. Makes a Greater Commitment to Brand Consistency

By | News, Press Release

FOR IMMEDIATE RELEASE – BUSINESSWIRE 

Liberty Tax Services Inc. Makes a Greater Commitment to Brand Consistency

VIRGINIA BEACH, Va. July 26th, 2018: In an ongoing commitment to its core mission, Liberty Tax is employing mobile-friendly technology giving KPI data needed at a glance for their 4,000 locations. Liberty Tax is dedicated to offering the flexibility of a personal tax consultant with the security of a large, established company – a mission furthered by this investment in technology.

Supported by FranchiseBlast’s Brand Consistency tools, Liberty Tax Services is enhancing its ability to track the metrics of success that each location relies on to thrive. FranchiseBlast, a Canadian technology firm, provides a comprehensive suite of tools for franchisors looking to streamline their field coaching processes. With this in their arsenal, the franchisor not only ensures operational compliance but also coaches franchisees to improve their performance.

“We pride ourselves on the total level of support that we offer our franchisees,” said Martha O’Gorman, Chief Marketing Officer at Liberty Tax. “Keeping a brand consistent across all locations is a big part of the value that we provide.”

The tools will not only help from a Marketing perspective; the operations team will also benefit.

“A franchise coach’s time is much better spent actually connecting with people, rather than punching in numbers and copy-pasting,” said Dean Hatzitheodosiou, Sr. Director of Sales of FranchiseBlast. “Our tools make these processes more efficient, so coaches can get back to doing what they do best.”

The software company traces its roots back to the food service industry, but it is more than that today – they offer solutions for a diverse array of industries including Financial, Home Care, Fitness and Education. A tailored version of FranchiseBlast’s Brand Consistency suite is expected to roll out to all Liberty Tax Services locations by the end of 2018.

About Liberty Tax, Inc.

Founded in 1997 by John T. Hewitt, Liberty Tax, Inc. (NASDAQ:TAX) is the parent company of Liberty Tax Service. During tax season 2017, Liberty Tax prepared over two million individual income tax returns in more than 4,000 US/Canadian offices and online. Liberty Tax’s online services are available through eSmart Tax, Liberty Online and DIY Tax. Liberty Tax also  supports local communities with fundraising endeavors and contributes as a national sponsor to many charitable causes. For a more in-depth look, visit Liberty Tax Service and interact with Liberty Tax on Twitter and Facebook.

About FranchiseBlast

Since 2007 FranchiseBlast has helped franchises in their quest for operational excellence. With 13,000 locations from over 90 brands, FranchiseBlast combines elegant usability with turn-key quickstart programs. FranchiseBlast’s clients include brand aggregators such as Focus Brands and individual franchise brands such as Tide Dry Cleaners, Pita Pit and Tropical Smoothie Café among many others.

Contact:

Stefania Sigurdson Forbes
Sr. Marketing Director, FranchiseBlast
877-567-5282 x709
ssigurdsonforbes@franchiseblast.com

See Businesswire Submission

Top 5 Complaints Store Managers Have about their Leaders and How to Avoid Them

By | Field Audits, Franchise Coaching

top 5 complaints franchise store managers haveComplaints… in franchising we hear a lot of them.

Some of us tune them out to survive.

But, in complaints, we can find a nugget of wisdom.

Bill Gates said: “Your most unhappy customers are your greatest source of learning.”

As franchisors, we have many customers – including franchisees and managers. In a franchising community so broad, it is shocking that many store managers and franchisees can have the same complaint. According to multi-unit management expert, Jim Sullivan, in his book Multi Unit Leadership, the following complaints are consistent.

The top 5 complaints that store managers had about their Multi-Unit Leaders:

  1. Not enough face-time.
  2. Store visits where MULs worked positions rather than offering specific direction, insight, coaching and feedback.
  3. Pre-occupation and distraction on the MUL’s part during store visits via constant phone, text and e-mail interruptions.
  4. Too much “telling what to do” not enough “why that problem occurred.”
  5. Changing priorities or failing to clarify objectives.

Does this sound familiar? Whether you are a business coach or a multi-unit leader, it likely rings true. Sullivan continues with this insight:

Too much of what passes for multi-unit-leadership training and development today was developed decades ago when the industry, customer, crew, technology were radically different. The leap from “telling what to do” to “telling why and how to do” is a skill that takes patient coaching guided practice and innate skill.

So – here are some tips at managing from a place of “why” instead of managing from a two-dimensional checklist perspective.

Purpose

In Simon Sinek’s book, Start with Why, he contends that leaders who help teams understand the “why” behind what they are doing are more successful than those who do not. Sinek explores the leadership of legends such as Steve Jobs and Martin Luther King.

Bringing this concept down to the earth, helping franchisees and store managers see how their “piece of the puzzle” fits in with the rest if it can go a long way. People want to understand the purpose first – and if they fully understand that, the actions follow more naturally from a place of motivation.

Find the Gaps

There are many coaching models that have a step around “finding gaps” such as the CIGAR Model.

  • C – Current Reality
  • I – Ideal
  • G – Gap
  • A – Actions
  • R – Review and Reinforce

Getting the franchisee or store manager to discover the gap between the current reality and the ideal can be incredibly helpful in terms of making the conversation about their goals, and not yours. Over time, you will discover a lot of similarities in goals, and a natural alignment.

Talk Tentatively

The book Crucial Conversations talks about the need to “Talk Tentatively” in the “STATE” Model.

  • S – Share Your Facts
  • T – Tell Your Story
  • A – Ask for Other’s Path
  • T – Talk Tentatively
  • E – Encourage Testing

When you are in a difficult conversation, it is a good idea to ask questions, and “test” certain concepts rather than making authoritative statements. Although you may still need to bring messages from head office, this being done in a gentler, tentative way can be extremely helpful.

Technology

When it comes to distraction, technology can be your best friend or your worst enemy. Technology, specifically built for franchise business consultants or multi-unit manager in mind can help you focus less on the process of auditing and more on the audit itself.

  • Automatically create “action plans” for stores if you see an opportunity for improvement. For example, if the store is choosing to do a seasonal event, you can give them a step-by-step process.
  • If you see patterns in violations, you can create a training module – one initiative that “lifts all boats”.
  • Get the franchisee to send you pictures before-hand of things like wrapped vehicles so you can focus on more face-time.

All of these features, and many more, are included in FranchiseBlast’s Field Audit app.



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9 Important KPIs for Health and Fitness Franchises

By | Franchise Growth, Health and Fitness, KPI

If you are in the health and fitness industry, according to research you have two important things on your mind: the success of your clients and the contribution you are making to your community. But you cannot help your members OR your community if you are not properly tracking the health of your business.

Just like your members need to measure repetitions and step on the scale in order to succeed, you as a business owner need to measure the health of your business on a regular basis as well. Below are some recommendations on 9 Important KPIs in for health and fitness franchises.

1.    Cost Per Lead (CPL)

If you are going to only measure one metric in your marketing programs, cost/lead is the one most worth the effort. It helps you understand how much you are spending on leads, and if the methods that you are using are effective. For example, if you are getting $25/lead off of Google, and $100/lead off of your print advertising, you will want to reconsider that print ad buy in the future.

CPL=Cost of Marketing Program/Total Number of Leads

Note when calculating, a lead has two aspects:

  • They are actively searching for the service
  • They provide a way for you to contact them for follow up

Ensuring you have the above, creates a fair measure for your sales team later down the line. It is a good idea to dedicate about 10% of your budget to experimental initiatives to make sure your marketing mix continues to be the right one.

2.    Conversion Rate

Conversion rate helps you understand your gym’s ability to turn leads into members. Typically seen as a sales metric, it shows how your sales team is doing with the leads provided by marketing.

Conversion Rate=Total New Members/Total Number of Leads

If this metric is weak, it may be an indicator that your facility is not up to par – you may want to look at renovations, or a refresh of equipment.

3.    Active Members

This is a basic but necessary metric will outline your success on the most elemental level. Measuring the growth and decline of members compared to the previous year is a fantastic way to track where you are in terms of the big picture. It is calculated below:

Growth Rate = (Present-Past)/Past

If your absolute member count is low compared to benchmarks, and your growth rate isn’t high, then you need to focus on increasing your member base through marketing efforts or by reducing churn.

4.    Revenue Per Client (RPC)

This commonly-used KPI provides a sense of clarity in terms of where you are in your business.

RPC = Annual Revenue/Total Number of Clients

If this is low, look for upsell opportunities such as personal training, niche classes or supplements.

5.    Revenue Per Square Foot (RPSF)

With the rent or mortgage costs associated with the space typically being the biggest cost associated with the industry, it is healthy to look at this often-neglected metric. In a multiple-location environment, this metric tells you what spaces are working, and what ones are not working for you. Also – if your RPSF is very low, you may want to consider a smaller space unless you intend to grow rapidly.

RPSF=Annual Revenue/Total Square Footage of Facility

6.    Utilization Rate

Utilization Rate is an amazing metric in this industry because it measures how much you are actually using your resources. If you offer personal training, for example, how much is the trainer actively engaged in the process of training? If you are renting a room for 8 working hours a day, and only using it for 4, then there is an opportunity to add more classes.

Utilization Rate=Total Hours Used/Total Hours Available

7.    Net Promoter Score (NPS)

Member satisfaction is both a customer service measure and a marketing measure. Why? Increasingly, brand is a verb, and you want to make sure that the experience that people receive at your gym is one that leaves them satisfied. Technically a loyalty measure, the Net Promoter Score (NPS) is a fantastic way to measure this on a quarterly basis.

This measure compares your biggest fans (promoters) compared to your biggest critics (detractors). Learn more about Net Promoter here.

NPS= % Promoters-% Detractors
Your NPS can help you in your marketing efforts, by asking promoters to leave reviews or recommend to their friends and family and it can help prevent churn.

8.    Retention Rate

Retention rates is something that the fitness industry has struggled with for a long time and churn of members is a common conversation topic at franchise conventions. In general, having a strong retention rate means that you are keeping your brand promise. You can measure this over the course of a month, quarter or year.

Retention Rate: Existing Clients at End of Period/Existing Clients at Beginning of Period

If this is low, it is a good idea to do a root cause analysis on why people leave. Having a “leaky bucket” of customers, means that you have to spend more on marketing upfront.

9.    Earnings before interest, tax, depreciation and amortization (EBITDA)

EBITDA is a measure of a gym’s operational effectiveness. It is a way to evaluate a company’s without having to factor in financing decisions, accounting decisions or tax environments. Although difficult to say or even fully comprehend for gym owners who have come up through the health and fitness operations side, it is a key indicator.

To calculate the adjustments needed for EBITDA, please see this article from Quickbooks.  

EBITDA shows how good your business is at generating cash thus your business is valued as multiples of this metric.

Just like your clients, it is important for you to measure the right things. With these 9 metrics in place, your business will be set up for success.

KPIs Fit for Your Business

Looking for more KPIs for your Franchise? Look at our post on how to use KPIs in Franchising.



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