Category

Franchise Business Plans

7 Common Franchise Business Plan Mistakes

By | Franchise Business Plans, Franchise Coaching
Franchise Business Plan Mistakes
Making a mistake in franchising is both painful and embarrassing – especially when you really care about your franchisees and their success. So… as a Franchise Business Coach, are you really setting your franchisees up for success with their franchise business plan or are you just going through a “tick-box exercise”? We discussed planning with several franchisors, and we came up with some of the biggest mistakes, and how you can avoid them.

1. Mistaking Cash for Profits 

Franchisors around the world have been focusing on franchisee profitability over the years, but it is good to remember that cash flow is very important in any small business. Profit is an accounting concept and not necessarily money in the bank. You want to make sure that you are tracking both as you are balancing cash-in and cash-out with your franchisee.

2. Ignoring the Bad Year Before 

An experienced franchisee knows the long-term ups and down. If you have owned a business, you also know that it can sap the motivation right out of you and you can start the year feeling like a deflated balloon. A wise franchisor once told me at an IFA Convention: “To help the franchise out, tap into why the bought the franchise in the first place. Were they creating a vacation fund, a life of more abundance or a legacy for themselves? Reharness that energy to help them overcome that challenge and move to the next phase.”

3. Not Sweating the Details

You want to get the details right. In fact, the value of the franchise business plan is to understand details including who is doing what, and when that is going to happen. Business planning is the opposite to throwing caution to the wind, it is a time to sit down and look at the specific key results that will link to each objective or goal, and who is accountable for each. This helps understand workload and balance it out for everyone. Contrary to the popular book, in this case, you DO want to sweat the small stuff!

4. Hitching their Wagon to the Franchisor’s Star

As discussed earlier, franchisees hitching their wagon to the franchisor’s star will not help them in the long run. Franchisees are much more likely to be successful if there is a personal element to their plan, such as saving for another unit or becoming a mentor to others.

5. Overvaluing Experimental Ideas 

While it is exciting to work on a new initiative, such as a National Account or a new SMS Marketing initiative, overvaluing projected results to be at their most optimistic level will not help the franchisee in the long run. Before you know it, when the campaign plays out to a below-par result, the finger-pointing will begin. Be conservative with the projected results of the campaign, and then if they are better at the end of the day, you will be pleasantly surprised.

6. Not Experiencing New Initiatives 

Sometimes a franchisee needs to see to believe in terms of recommended elements in the franchise business plan. Code Ninjas, for example, has franchisees attend two grand openings before they go live themselves, and one after. This not only creates a realistic expectations, but it also helps with the practical side of budgeting to have the event that is right for them.

7. Mistaking Deviation for Adaptation 

Sometimes a franchisee will have a creative initiative in the plan, which can be a good thing. People have to adapt to their market, such as McDonald’s Teriyaki burger in Japan, or serving wine in France. However, sometimes those initiatives will deviate from the Franchise, and create confusion in the market about the brand. When looking at initiatives, you want to understand if it is bringing the brand forward, or setting it backwards.

Last Word 

Planning the right way means tracking progress throughout the year. Check out FranchiseBlast’s Audit and Brand Consistency tools to learn more about tracking progress along the way.


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6 Tips to Keep Franchisees Motivated Throughout the Year

By | Franchise Business Plans, Franchise Engagement
franchisees motivated

Did you start your New Year’s resolution to create a franchise business plan across your system? Guess what – it is half-way through the year.

Question… how are those plans going?

While most franchisors recognize the value of franchise business plans, with competing priorities, they can be hard to stick to.

The good news is, we are not down to the wire. It is not too late. Your franchisees can still achieve their goals – but they have to start now!

So get energized and get focused on these 6 actionable ways for franchisees to stay motivated towards their goals.

1. Leverage Triumphant Franchisee Stories

In the daily grind, sometimes it is hard for franchisees to stay motivated. Hearing stories of fellow operators who pulled through a challenge and succeeded can be a fantastic way to motivate. This can be done through webinars, pictures in one of your regular eBlasts or even through internal social media.

2. Encourage a Healthy Routine

Exercise, nutrition and sleep are fantastic for mental and physical help. Exercise alone has been scientifically proven to create more confidence and a more positive demeanor. Some franchisors have taken this idea and ran with it, creating fitness contests for their franchisees, encouraging them to submit a new healthy habit to be put into a draw, for example. Everyone likes to do business with someone who is healthy and confident, so this will be positive for the system as a whole.

3. Reward Regions on Achieving Milestones

Milestones are so important when it comes to motivation. In franchising, we have the unique opportunity to reward whole regions! This could be with an appealing Marketing initiative from the Adfund that would boost business further, such as money towards exhibiting at a prestigious regional show. It could also mean a visit from the CEO, or a motivating learning opportunity. Rewarding a region will also create harmony there, which helps everyone, including your customers!

4. Encourage Personal Time

With an increasing mountain of workloads and an “always on” culture, sometimes we lose track of our franchisees and what is going on in their lives. We have discussed before on this blog about co-creating plans and keeping the personal in mind. You may want to remind franchises to have a little personal time – whether it is getting out fishing, going to the game on the weekend or practicing yoga, asking about these activities can cement relationships and help prevent franchisee-burnout.

5. Remain Positive

It can sound trite, but it has to be said. Although franchise networks can be an incredible support structure, sometimes they can also get negative. The stakes are high – getting into a negative mindset can hurt even the most successful business. It is important to listen and respond to challenges, but you also want to balance that with a bright view of the future and a clear vision of where the franchisee can go. Introducing franchisees to a group of positive friends can make a world of difference, if they are open to it.

6. Set Reminders

Part of staying motivated is having reminders on what to do. We spend so much time distracted by reminders, having ones that keep the franchisees focused on the business can “break through the clutter”. You can do this with software, with FranchiseBlast’s automatic reminder system, for example.

Last Word

Ready to learn more about franchise business planning? Check out our collection of articles here.



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5 Ways to Use Data in Your Franchise Business Plan

By | Field Audits, Franchise Business Plans

According to the Harvard Business Review, “Recent studies show that only about 15% of decisions made by doctors are evidence based. For the most part, here’s what doctors rely on instead: obsolete knowledge gained in school, long-standing but never proven traditions, patterns gleaned from experience, the methods they believe in and are most skilled in applying, and information from hordes of vendors with products and services to sell.” If only 15% of doctor’s use evidence, it is extremely likely that franchisees use data in their decisions even less. This means smart franchisees using data will win a competitive advantage over those who do not.

In our recent post on franchise business plans, we discussed a step-by-step approach. Now we want to do a deep dive into data for the franchisor audience.  Using data is a fantastic way to uncover problems which can be valuable in that first part of the planning cycle of “identifying the issue” and then uncovering if the issue identified is actually a real business problem.

Rank

When referring to “rank” that is the franchisees ordered from best to worst, compared to the system or a sub-group, such as region or training class. The first few metrics include benchmarks, a vital metric for franchisees.

Why it’s important

Rank is important because you can see where the franchisee is compared to others in the system. It is like the “you are here” symbol on the map – orienting them as to where they stand in the system in terms of performance. While not everyone needs to be in the top 10, understanding rank can help them get a realistic view about what is truly going on in their business compared to their peers. Seeing the performance of like franchisees also helps them get inspired, and maybe curious about what is giving others ‘the edge’ such as off-premise sales or a neat new promotion.

Trend

Understanding how the franchisee is doing compared to previous months helps you see where they are going. In fact, some in the Private Equity world consider the trends to be more important than the numbers themselves.

Why It’s Important

Comparing to previous performance encourages self-directed competition, rather than looking to others. Franchisees can find this metric more motivating, since it is not externally driven; they find the motivation within themselves. This also helps get away from the “my market is unique” objection.

Example

In this example, imagine that % of online orders is something that you focused on strongly with the franchisee. Looking at the trend column, you can see that Sales and Checks are going down, even though online orders are going up. This could indicate a greater focus on the new online orders, resulting in neglect on the side of the traditional business. According to the book Measure What Matters, when a new goal is set, you want to look at the balancing metrics as well.

For example, when sales to up, you don’t want quality to go down. When a new product line is introduced, you don’t want the old product line to suffer. Setting two goals instead of one, such as keeping traditional sales consistent while increasing online sales, is a good practice.

Questions to Improve

This list shows the places where the franchise can get better in terms of being an operator. This serves as a starting point for the planning cycle. When you identify an issue, it may not get resolved right away. Instead of it getting forgotten the moment you step onto the plane on the way home from your franchise visit, you can have a plan and keep track of it so it will be resolved in the future.

Why It’s Important

Keeping the “questions to improve” top of mind helps crystallize what the most important action is based on the audit. After all, it is one thing to do an audit, but it is quite another to act on it.

Example

Above, you can see a number of failed questions on the audit. After a quick review, all of the questions are regarding cleanliness and food safety. In terms of planning a straightforward idea would be to group them together and create a plan around this issue.

Top Store Weaknesses

A franchise system is only as strong as its weakest link. When looking into weaknesses, it gives you a picture of the potential vulnerability of the franchisee, and what actions can be done to resolve it.

Why It’s Important

Having a weakness with a label of severity based on the franchise system helps the franchisee understand the seriousness of a potential issue. This then makes future discussions, and potential escalations simpler when there is a clear audit trail.

Example

In the example above, you can see this data at work. Important elements are marked as “critical”, such as Net Sales and Gross Sales – with a serious shrinkage of over 15% each. Smartphone usage is considered less important and is marked that way.

Bird’s Eye View

Pulling the focus back from individual questions, looking at the big picture helps you coach and plan appropriately.

Why It’s Important

An audit is a lengthy process, and it can be difficult to see the forest for the trees. Seeing the overall picture shows if the franchisee is failing on full sections, helping identify areas of staff concern or training needs.

Example

In the heat map above, you can see that the areas of failure are marked in red. In the next section up, you can see groupings of questions which were highlighted. Although this example does not show a full grouping failure, there are a few “collections” of 3-4 adjacent questions which are marked in red. Exploring those questions and finding a big-picture resolution in terms of training, equipment purchase or staff change, for example, could be transformed into a goal.

The Last Word

Are you ready to deep dive into data, for various parts of the audit? Take a look at our Franchise Scorecard eBook -full of metrics, KPIs and samples from a variety of verticals.



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5 Steps to Using Benchmarks in the Franchise Business Plan

By | Benchmarking, Franchise Business Plans

You understand the benefits of planning and you have discussed the franchisee’s goals and expectations. But, how do benchmarks fit into the overall picture? Benchmarks allow you to measure performance of one franchisee against the other. With this in mind, here are 5 steps to connect these two key pieces into a valuable whole.

1. Identify the area where the franchisee needs to improve

Finding the area of improvement can be either proactive or reactive. If it is proactive, it is part of the franchisee planning process, and it is a goal to strive for. If it is reactive it is perhaps in response to a violation on an audit. Areas for improvement can also come from program rollouts from head office, from a new service line to an annual Marketing contest in the busy season.

2. Measure the franchisee’s performance in that area

Measuring performance in the area gives you a “before” and “after” picture. Financial performance metrics are easy to quantify, and the more “direct from source” they are, the better. Customer Satisfaction can also be looked at through Net Promoter Score (NPS), Google Reviews or a tool like Review Trackers. Finally, the Franchise Audit provides a score-based method for you to put numbers to actions. If you are measuring “self-report”, it is a bit fuzzier, because human nature means that some franchisees may over- or under- report. Having “hard back-up” can help – such as requiring receipts for investments in marketing submitted to get rebate.

3. Decide which franchisee you would like to benchmark against

While every franchisee will have a reason why their market is unique, there are always ways to compare them to other businesses, whether they are in the same region or training group, for example. If they have similar business types, such as a business with a drive-through, in a mall or off-premise – you can also look at that as a benchmark peer. Compare your franchisee to a like group, to be both fair and results-driven.

4. Compare data collected to franchisee performance

Now it is time to look at what is happening for the franchise compared to others. If they are below average, you will want to boost their score. If they are average, and they want to be more of a leader, you can shoot for that – in fact Ben and Jerry’s does just that with great success. Sometimes the franchisee will want to win an award in their area of choice. Awards give franchisees audacious goals to strive for, inspiring others to follow in their wake. If you are running a scorecard program, this information is readily available. If not, you may have some work to do in terms of data gathering.

5. Create a project or action plan

Any good sales manager will tell you that revenue goals alone do not help sales teams succeed, activity goals do. So – instead of thinking of that 5 Million Dollar target, a salesperson can think about one appointment with a qualified decision maker per week, for example. Action plans are the building blocks to goals. Having an Project Management or Action Plan tool is a fantastic way to track this.

Final Word

Once you have your benchmarks integrated with your plans, the franchisee can get back to focusing on the day-to-day in a more effective way. After this, you can do regular calls or check-ins with franchisees on a monthly or quarterly basis. As a leader in benchmarking tools for franchisees, FranchiseBlast is a great way to accelerate your planning cycles.



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Tips on Building an Effective Quarterly Franchise Business Plan

By | Franchise Business Plans, Franchise Coaching

A good proportion of franchisors utilizing our franchisee field audit app also use FranchiseBlast for business planning purposes. We’ve had a few franchisors reach out and ask us what we thought was the best format for a business plan and, as such, created this guide!

To give you a bit of context, we’re not talking about the proforma business plan a franchisee would create to secure bank funding to open up their location. We’re talking about ongoing action plans or business plans defined by the franchisor’s franchise business coach during their field visits or phone coaching sessions. These are typically quarterly business plans in the context of a franchisor-franchisee relationship but their duration can vary greatly. One could create an annual business plan with their goals for the year and decompose this plan into quarterly business plans and then to very specific as monthly or even weekly action plans.

Before we explain what quarterly business plans typically looking like, let’s revisit the concept of SMART goals.

SMART Goals

Everyone has a slightly different definition of what the acronym SMART means in the context of a goal. Here are a few different interpretations from a project management site. You’ve most likely been introduced to this concept on a few occasions.

  • S: specific, significant, stretching
  • M: measurable, meaningful, motivational
  • A: agreed upon, attainable, achievable, acceptable, action-oriented
  • R: realistic, relevant, reasonable, rewarding, results-oriented
  • T: time-based, time-bound, timely, tangible, traceable

At FranchiseBlast, we favor the following interpretation and have included examples for each.

Specific: Be clear about what you want achieve do to improve your business.

Example: We want to increase off premise business or online ordering.

Measurable: You’ll need to be able to quantify progress or success. How do you define your goal in a way that is easy to calculate?

Example: Online orders should compose at least 10% of our total orders. (The key performance metric of “# of online transactions” / “# of total transactions” should exceed 10%).

Actionable: If you have this goal, you must be able to do something concrete to achieve it. This ties into it being attainable.

Example: It’s actionable because we can train staff to mention the program during every transaction or phone order. It’s attainable because we know over half of the units in our territory have achieved this goal.

Relevant: This helps you realize if you’re working towards the most impactful elements of your business, not just busywork that does not add to the bottom line.

Example: Our strategic initiatives this year have us working towards a 5% same store sales increase and we have a number of marketing initiatives in place to support this, including the launch in January of our online ordering program. It’s new in our location and we know it helps improve sales and kitchen efficiency.

Time-Based: Giving yourself a deadline to accomplish the goal makes sure something gets done.

Example: We want to achieve 10% of online orders by October 31st.

Overall, a SMART goal is something specific that is well-aligned with strategy, can be measured over the course of a time period and, at the target date, it can be determined if our action plan succeeded or failed.

Corrective Action Plans are not Franchise Business Plans

Users of our franchisee field audit app will know that the app lets you create a corrective action plan for any anomalies highlighted during a field visit. For any question within the field audit questionnaire, you can define a task that must be completed by a certain person by a certain date. While effective for course corrections such as the need to replace a chair they aren’t necessarily a great fit for business plans where you want to be more strategic.

A strong business plan elevates the discussion to key drivers in the business.

A Simple Action Plan

Now that we’ve established the context, let’s talk about what action plans can look like in the real world. The simplest pattern you can use when defining a business plan is to have two simple free form text questions:

  1. “What area of opportunity did you observe?”
  2. “Which activities are recommended to address this area of opportunity?”

This form is extremely simple but a great addition to any standard field audit questionnaire performed by the franchisor. Be sure to balance out areas of opportunity with congratulations for this unit’s strengths.

Although simplicity is key, there are better ways to help your franchisees think strategically. This is a good first step from moving from a cop to a coach relationship with your franchisee, but the value provided to the franchisee is highly dependent on the coach and their unique point of view on the business.

The SMART plan

If we’re willing to put a bit more work and become more strategic with our quarterly business plans, the next level up is the SMART plan, referencing the goals-setting strategy mentioned above.

This questionnaire will include the following elements:

What is your SMART goal?

You would write out a goal that matches SMART criteria above.

Example: Increase the % of online orders to 10% by October 31st.

Is there more information relevant to your goal?

When applicable, complement this with additional information about why it’s relevant or what the current standard is within the franchise. This goes deeper into the area of opportunity.

Example: Increase the % of online orders to 10% by October 31st. As you know, the franchise’s move to digital is a critical strategic objective & differentiator. The network average is already 20% and we’ve seen stores go from 0% to 10% in 2 months after properly marketing the initiative.

What activities/tactics will you perform to achieve this goal?

Example: Add post on restaurant Instagram channel with the hashtag #instagood 

What is the due date for the goal and each of the activities?

Due date to achieve target: Oct 31.
Due date for first Instagram post on online ordering: Sept 1. 

Who is accountable for the goal and each of the activities?

Target: GM of Restaurant 
Instagram: Supervisor 

When applicable, what is the budget for this initiative?

Target: $1,000 
Instagram: No budget 

Recommended Patterns

At FranchiseBlast, we see a number of different layouts for the above.  Here are some patterns to give you some ideas:

Pattern 1

  • Goal
  • Activities
  • Due Date
  • Done By

Pattern 2

  • What is your SMARTgoal?
  • How will you measure success?
  • Why is this an attainable goal?
  • Why is this goal relevant?
  • What’s your due date?
  • What activities will you do?
  • Who will be accountable for this?

Pattern 3

  • What is the area of opportunity, compared to our standards?
  • What is the SMART goal and related activity?
  • Activity 1
    • What is the activity?
    • By whom?
    • Due date?
    • Budget?
  • Activity 2
    • What is the activity?
    • By whom?
    • Due date?
    • Budget?
  • Activity 3
    • What is the activity?
    • By whom?
    • Due date?
    • Budget?

Overall, these are pretty much the same pattern of having a SMART goal.

Pattern 1 is the simplest approach.

Pattern 2 breaks down the goal to ensure they’re following a SMART philosophy.

Pattern 3 breaks down each individual activity so that it can easily be delegated to different individuals. We’ll often observe that Pattern 3 is interesting when you have a longer-term plan (say quarterly), and the activities break down that plan into more granular pieces (Month 1, 2,3).

Quarterly Business Plans in FranchiseBlast

Overall, the breakdowns that we have already presented in this article focus on a single goal at a time. Let’s bring the sophistication level up and move from Action Plans to Franchise Business Plans and talk about the broader process, not just the questionnaire.

Step 1: Review Data & Find Actionable Insights

The first step in the process is to acquire and analyze the data you have about this unit and discover where their weaknesses lie, which are the most impactful and how those align with the franchise’s strategic objectives. Tools like our Franchisee Scorecards simplify this process greatly helping the coach evaluate the business from a holistic perspective from a single dashboard view to decide if they should drill down on financials, customer satisfaction, food safety risks, etc.

You could execute flawlessly on your business plan, but if you haven’t properly analyzed the situation and determined the appropriate root causes of any issues, the intervention will not be as impactful.

To help determine root causes of staff behavior, some people go through a workflow such as:

What’s the problem?

Describe the problem in as much detail as necessary.

Is it important?

If not, ignore.

Is it a skill deficiency?

If the problem is based on skill, arrange different forms of training based on if training has occurred before and how often the task is performed.

If skill is not the challenge, is it a knowledge deficiency?

If so, they’ll provide different forms of information/feedback.

If not, then they’ll drill down to the root cause which could be removing obstacles or adding incentives/consequences.

Step 2: Define the Business Plan (Goals & Activities)

Now, pick a limited subset of areas of opportunity to focus on in the next quarter. If you try to focus on too many things at once, you’ll fail at all of them. For each area of opportunity, you’ll define an action plan for a single goal as defined previously in this article. There are a few different patterns to accomplish this but here we outline the main two.

Pattern 1: Pick Three

Some franchises will say: “pick three areas of opportunity and focus one those”. This forces you to make hard choices about what’s the most important for this unit’s future. Although we say “three” in this example, we have seen anything between one and six. If it starts getting larger than that, we start considering it an “anti-pattern”: that’s just too much to focus on. Personally, we believe that 3 is a good number.

The standard way most franchises do it is to have free form options where the coach enumerates the top three options he or she believes to be the most impactful. However, some franchises resort to using the concept of a checklist.  This checklist is a common list of ‘buckets’ under which areas of opportunity fall under. The coach and the franchisee talk about each bucket and jot down some quick notes and collaboratively define which ones they should be focusing on. See the checklist as just a guideline for the conversation.  For example, pick three out of the following list:

Team
  • Training
  • Staffing
  • Turnover/Tenure
  • Development
  • Bench Strength
  • Diversity
 Sales
  • Service Scores
  • Marketing/Events
  • Customer Traffic
  • Comp Sales
  • Salesmanship
  • Incentives
  • Contests
Product
  • Food Safety
  • Food Quality
  • Waste
  • Line Checks
  • /Receiving
  • Compliance
  • Best Practices
Profit
  • Food Costs
  • Labor Costs
  • Overtime
  • Misc Cost of Goods
  • Supplies
Facility
  • Cleanliness
  • Repair & Maintenance (R&M)
  • Inspections

You’ll notice that many of the items on this checklist are frequently found in field audit scores or franchisee scorecards. A few, however, require deeper conversations with the franchisees about their personnel and long-term vision.  We find this concept of a checklist interesting as it forces the stakeholders to, at least briefly, consider various elements that they may have forgotten about while in the heat of the conversation.

Pattern 2: Pick One or Two for Each Dimension

In a second case, some franchises choose to say that their business can be viewed in four different dimensions. For example, they could define themselves in the following way:

  1. People
  2. Product
  3. Service
  4. Marketing.

In the above example, it would be:

  1. Team
  2. Sales
  3. Product
  4. Profit
  5. Facility

The dimensions vary depending on the brand, but overall for each dimension the coach will choose one or two areas of opportunity Some will impose that there’s a maximum total of goals defined for all dimensions combined (say 1 or 2 per dimension, with maximum of 5 initiatives in all). This practice forces you to think a bit more about the business from a holistic view instead of always looking at attacking “improve sales” directly, but you have to be careful not to overwhelm the franchisee.

We find this an interesting approach as long as you keep the list to a minimum and identify what the real top three are.  It’s good to look at all facets of the business. Some franchisors address this in a different way by having some monthly calls with the franchisees where the ‘topic of the month’ is discussed. Each month, that topic varies from “Employees”, to “Marketing”, to “Food Safety”, etc. This is a nice complement to the more formal quarterly business plan.

Step 3: Continuous Review

During the quarter, it’s important to periodically review the plan and see if we’re performing the planned activities and if our goals are on their way to being met or if we need to course correct. This can be done over the phone, but it brings value to the fact that the business plan is a living document.

Step 4: Postmortem & New Plan

Once the quarter is done, it’s critical to review how you did against the plan. We won’t necessarily reach all our goals, but it’s great to learn from the activities we performed or didn’t perform. These lessons learned will help us guide the next quarterly business plan.

Final Example

If you don’t have a business plan template today, we’d recommend doing something as follows which we find simple enough to be easy to use yet extensive enough to be less dependent on the domain knowledge of each coach and easier to systematize.

Highlight of Successes

Area of Opportunity 1

  • Why it’s an area of opportunity and why it’s important (how it relates to sales or strategy, the franchise’s standards, your benchmark vs group, etc.).
  • SMART Goal around a measurable metric with a Due Date
  • List of activities with who’s accountable and due dates. (Breakdown into more granularity when appropriate.)

Area of Opportunity 2

  • Why it’s an area of opportunity and why it’s important (how it relates to sales or strategy, the franchise’s standards, your benchmark vs group, etc.).
  • SMART Goal around a measurable metric with a Due Date
  • List of activities with who’s accountable and due dates. (Breakdown into more granularity when appropriate.)

Area of Opportunity 3

  • Why it’s an area of opportunity and why it’s important (how it relates to sales or strategy, the franchise’s standards, your benchmark vs group, etc.).
  • SMART Goal around a measurable metric with a Due Date
  • List of activities with who’s accountable and due dates. (Breakdown into more granularity when appropriate.)

Postmortem (filled out at the end of the term)

When choosing your areas of opportunity, have a reference list of standard areas (as per the above breakdown in Team, Sales, Product, etc.) nearby to guide conversations and have your franchisee scorecard handy. If you don’t have a franchisee scorecard yet, take a look at our Ultimate Guide to Franchisee Scorecards.

Conclusion

A franchisee business plan provides another “arrow in your quiver” when it comes to driving franchisee performance. Integrating some concepts from the world of Project Management and ideas from leaders in the franchising community, can help set you on a path for success.



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Grow with Franchisee-Led Business Plans

By | Franchise Business Plans, Franchise Engagement

grow with franchisee led business plans

Franchisees who set their own goals are more likely to succeed than those who simply follow the objectives set by the organization. Why? Veterans of the franchise community know that franchisees who set and commit to their own goals are more motivated than those that “hitch their wagon to the star of the franchisor.”

After reading a franchising expert discussing this in Franchising World a few years ago (it seems the edition is not now available, otherwise there would be a link), I thought of all of the most successful franchisees I knew over my 10 years in the space. While it was true that though many of them loved the brands, there was an even greater commitment to their own lives in terms of fulfillment and creating a better life for their families and loved-ones.

Power of Self-Selected Goals

Pioneering organizational psychologists draw a clear line between extrinsic and intrinsic motivation. Extrinsic motivation are those things that are on the outside, those “carrots” that managers are used to including pay raises, bonuses and benefits. While these have their place, they do not have the lasting effect of when motivation comes from the inside, or “intrinsic motivation.”

Intrinsic motivation, according to Ivey Business Journal’s Keith Thomas is absolutely needed in a world where people, now more than ever in franchising, are self-managed. An intrinsic reward has the following components:

  1. A sense of meaningfulness – it gives franchisees an opportunity to accomplish something of real value.
  2. A sense of choice – the franchisee feels like they have some choice in which way they approach their goal and the way in which they are measured.
  3. A sense of competence – they feel a sense of satisfaction and pride in terms of how well they are accomplishing their goals. The franchisor can then be a partner in helping achieve that goal.
  4. A sense of progress – they feel like their efforts are really accomplishing something and they can see that progress.

Tips on Goal Setting

  1. Make sure the franchisee is setting both business and personal goals. According to Street Smart Franchising, there is no franchisor who will have a goal counting how many nights a week a franchisee is home for dinner with her family. However, an innovating coach can help a franchisee attain both their financial and personal goals satisfying the franchisee and the organization.
  2. Franchising is full of “making mountains out of molehills”. If you are coaching with purpose, when someone is focusing too much on the nitty gritty rather than the big picture, you can bring them back to what is most important.
  3. A way to create a positive difference and loyalty for franchisees is to provide meaningful building blocks for their intrinsic rewards. Every single goal has it’s own path, and helping remove obstacles or stabilize a foundation for your franchisee will go a long way.

Franchise-led business plans is the foundation for sustained growth and create an exciting and vibrant culture for your franchisees. They also lead to more franchisee satisfaction, since they are seeing their own desires become reality. As a coach, it can also be great for your own fulfillment as you help your franchisees and their families on the road to their dreams.

About Stefania

Stefania is the Sr. Marketing Director at FranchiseBlast. She comes from 20 years in the Marketing world, 10 of them in progressively Sr. positions in Marketing – most recently as the Director of Marketing and IT Development at Tutor Doctor. During the course of her career she has worked with companies like Microsoft, 3M, Shred-it and the Intercontinental Hotel. While at Shred-it, Stefania was recognized by Google as operating a best practice in managing a franchise PPC campaign and her website at Tutor Doctor won an “Outstanding Achievement in Internet Advertising” award by the Web Marketing Association in 2016.

Stefania has taken part in several speaking engagements across North America about entrepreneurship, franchising, marketing and technology and has volunteered for numerous organizations helping children, artists and educational institutions; she is a volunteer with Futurepreneur as a mentor, and does a number of community initiatives. She was also the past Communications Chair of the Queen’s Alumni Association of Toronto. She holds an MBA from Queen’s University and a Bachelor of Commerce from Carleton University. She lives in Vaughan, Ontario with her husband, Matthew and two children, AJ and Violet.



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