Monthly Archives

August 2020

2020 Franchise Operations Edit

By | Franchise Operations
2020 Franchise Operations Edit
For virtually everyone in franchising, this was not the way that 2020 was supposed to go. For many of us, the world feels like it has been turned upside down. There are some positive stories. On the franchise development side, we can see there is an anticipated move towards entrepreneurship increasing sales, for example. On the operations side, we are adjusting, and making tweaks to our audits, processes and plans.
Based on real-life examples we are hearing from our customers, here are 7 things that you can do to adapt your operations* in 2020. While many of these involve the pandemic, we also have a legislative change at the end.

1.Enhanced Opening Procedures

Since Personal Protective Equipment (PPE) equipment is required in many areas, you may need to add the purchase of PPE Equipment to your opening procedure.

Sample:

Add to Opening Checklist: 
“Order all required PPE equipment from an approved vendor. This includes hand sanitizer, extra face masks, and a contactless thermometer.”

2. Edited Audit and Projects Sections

Franchisors typically have opening procedures separated out by department. These can include:
  • Training
  • IT Support
  • Construction
  • Field Support
  • Accounting
The relevant departments will then pay close attention to the sections that have their names on it – building accountability across the system. During the pandemic, many franchisors have had to put staff on furlough, or leave, moving responsibilities from one team to another.

Sample:

Field support may be covering tasks of a reduced training team. As a result, you may want to move some of those sections of the audits.
“Confirm prices on Catering Menu” > Move from Training to Field Support section.

3. Uniform Changes Adding Face Coverings

Most audits have some questions regarding uniforms. With mask coverings required in some areas, you may want a question added for franchisees in those regions.

Sample:

Add to Audit:
“Team Member in uniform including face coverings in place. Worn correctly over the nose and mouth.”

4. Signage and Local Mask Regulations

In other areas, customers are required to wear masks indoors. As a result, there may be some additional signage required when people enter the premises.

Sample:

Add to Self-Assessment: 
“If your State/Province/County/Region/City requires customers wearing masks while inside, having the appropriate signs up at all entrances and the POS.”

5. Daily Self-Check Procedures

Some franchisors who are doing in-person audits again, are requiring auditors to perform a daily check on themselves before entering the premises. This is a way to create a virtual paper trail now, and into the future.

Sample: 

Add self-check audit:
  1. Are you experiencing any of the following symptoms associated with COVID 19 – fever, new cough, dry cough, shortness of breath, difficulty breathing, aches, runny nose, or sore throat?
  2. Have you or someone you are in close contact with traveled outside of the country in the last 14 days?
  3. Has someone you are in close contact with tested positive for COVID-19 or shown the symptoms of COVID-19 in the past 14 days?

6. Edited Franchise Business Plans

Franchise Business Plans that were made in good faith in January, have likely changed. But, the environment in 2020 does not mean that the plan has to be thrown away. At the same time, you want to focus on having a plan that is flexible but still offers some structure.

Sample:

Before, you were helping your franchisees grow revenue, but now you are supporting them as they weather the storm. You may also have also changed some of your initiatives based on a more socially-distant world.
Objective: “Grow revenue for the franchise.” > Change to “Weather the storm revenue-wise.”
Key Result: “Increase inbound leads by 20%.” > Change to “Increase online leads by 20%.”
Initiative: “Attend 2 Community events/year (fairs, parades, festivals, etc.)” > Change to “Run Instagram campaign with Agency”

7. California Consumer Privacy Act

Not all changes are related to the pandemic. We cannot forget that there was recently important legislation passed in America’s third-largest state. The California Consumer Privacy Act went into effect on January 1, 2020.

Sample:

Add to Audit for California locations: 
“California privacy act information posted in the guests’ view.”
Last Word 
While adjusting can be uncomfortable at times, putting these changes in place sets a strong foundation for your franchisees to succeed through these times. It also gives your franchisees confidence in the system overall.
*Note that all that is written above are suggestions only, and do not qualify as advice. Please advise with local professionals for detailed recommendations.


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Sample Objectives and Key Results (OKR) for Education Franchises

By | Education, Franchise Business Plans
Education Franchises Objectives and Key Results

Education franchises employ hundreds of thousands of people across the US and around the world. According to IBISWorld, there are almost 173,000 businesses operating as tutoring or driving schools in the U.S., employing 343,451 people. As the world shifts, some of this revenue will be coming from online sources.

OKRs

  1. O: Increase profitability through sales and marketing enhancements.
    1. KRs:
      1. Get cost/lead to $70 off of online sources.
      2. Have a trial conversion rate of 80% (new students/trial).
      3. Increase walk-in traffic by 10%.
      4. Get online reviews to 4.1 stars.
  1. Initiatives:
    1. Have home office Marketing team review marketing campaigns.
    2. Work with property management company for brighter and more engaging signage outside of center.
    3. Have an email campaign directed at happy customers encouraging reviews.
    4. Self audit using “World-Class Service” audit in FranchiseBlast.
  1. O: Increase franchisee efficiency.
    1. KRs:
      1. Maintain coach cost at 33% or lower.
      2. Get Marketing cost to 10% of Sales.
      3. Increase coach to student ratio from 1:5 to 1:8.
      4. Increase engagement in online platform for students by 20%.
  1. Initiatives:
    1. Review coach cost on monthly FranchiseBlast scorecard.
    2. Do a Facebook live showcasing the new online platform.
    3. Train coaches on how to manage more students.
    4. Apply for government grant for hiring students.
  1. O: Delight customers.
    1. KRs:
      1. Have an NPS of 70 from parents.
      2. Have an NPS of 50 from students.
      3. Get three customers to post a review over 4 stars/month.
      4. Have 10% of customers enroll a second student from same household.
  1. Initiatives:
    1. Launch a customer appreciation event including parents, students, and their family and friends.
    2. Create flyers for second student promotion to be handed out at the center.
    3. Create annual award for coach with highest NPS for parents or students.
    4. Train coaches to ask happy parents to post a positive review.

Hopefully these sample objectives and key results have helped you out. Do you want to take it a step further? Learn more about strategy and education franchises by checking out the following:



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Sample Objectives and Key Results (OKR) for Automotive Franchises

By | Automotive, Franchise Business Plans
Objectives and Key Results for Automotive Franchises

Automotive franchises make a significant impact on the economy. According to IBISWorld, there are 263,000 auto mechanic businesses running in the U.S., with industry employment counting over 500,000. Although the changing landscape is affecting these businesses, they are still making a meaningful contribution to the economy.

OKRs

  1. O: Increase franchisee revenue.
    1. KRs:
      1. Have a customer acquisition rate of 25% (new customers/total customers).
      2. Have a quote capture rate of over 70% (total sales/total quotes).
      3. Increase leads from online sources by 25%.
      4. Get a conversion rate from service texting reminders of 20%.
  1. Initiatives:
    1. Launch campaign with current happy customers to get more reviews.
    2. Enhance texting reminder campaign using new vendor.
    3. Have home office sales coach talk to Service Manager about best practices.
    4. Review quote capture rate on monthly FranchiseBlast scorecard.
  1. O: Increase franchisee efficiency.
    1. KRs:
      1. Have a productivity ratio of over 80% (hours clocked/hours available).
      2. Decrease parts supplier costs by 10%.
      3. Reduce marketing costs by 20%.
      4. Reduce staff costs by 15%.
  1. Initiatives:
    1. Hire junior technicians at a lower rate to pick parts so senior technicians save time.
    2. Reorganize the shop to improve technician workflow.
    3. Review productivity ratio on monthly FranchiseBlast scorecard.
    4. Review marketing spending by lead source and eliminate ones with high Cost Per Lead (CPL).
  1. O: Delight customers.
    1. KRs:
      1. Reduce cycle time by 10% (measured through Point of Sale from drop-off to delivery).
      2. Have a Customer Satisfaction (CSAT )score of 75%.
      3. Have 50% of customers come back for repeat business within one year.
      4. Have Employee Satisfaction Score of 60% (happy employees lead to happy customers).
  1. Initiatives:
    1. Have two “Family Days” with staff per year (summer and holidays).
    2. Eliminate the vendors with the slowest parts delivery record.
    3. Send text reminders for service.
    4. Self-audit using the Customer Care Audit with FranchiseBlast.

Hopefully these sample objectives and key results have helped you out. Do you want to take it a step further? Learn more about strategy and automotive franchises by checking out the following:



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