Category

Video

Virtual Visits in Franchising

By | Video, Virtual Visits
Virtual Visits in Franchising

FranchiseBlast works with over 100 franchisors, and many are facing the same dilemma:

  • Franchise Business Coaches (FBCs) Can no longer travel due to governmental restrictions.
  • Fewer FBCs to support the network overall.

Virtual visits have been helping franchisors meet this challenge. In this post, we will go through some options for the virtual visit, and how it can benefit your franchise system.

Rethinking the Field Audit

FranchiseBlast is known as a tool for field audits across the franchising community.  With this app, coaches go through the compliance checklist that you’ve developed.  With this powerful system in place, one thing you can do is identify what your system-wide weaknesses are.

You can also discover activities that are a weakness across the system, such as “suggesting promo items”, for example. As a result, you will coach your network more effectively as a whole and train them on upselling skills to address the global weakness.

In the new environment, these compliance checklists may not apply as directly.  As a result, franchisors are creating questionnaires that are coaching-driven and are easily executed remotely. For example, franchisors can have a check to see if franchisees have completed a specific training or are following through on a specific marketing campaigns.  With this kind of audit, the coaches do not need to be in the field and, if applicable, franchisees can upload relevant pictures.

Franchisee-Driven Actions

For compliance specifically, franchisors are training franchisees on self-assessments – which is a way for a franchisee to audit themselves. If the franchisee uploads pictures, such as signage around physical distancing, franchisors can easily browse photos all at once to save time using the picture feed feature.

The challenge with self-assessments, is that they are passive in nature in that the franchisor is waiting on individual units to launch an audit. Conversely, with polling, you can say:

“Have this questionnaire filled out by everybody.”

The system then pushes out the survey. The franchisees and crew don’t need to be logged into the platform to fill it out and you can track who’s filled it out and who has not.

Data-Based Decisions

The information above helps with the compliance aspect of the FBC’s work but there is an ongoing trend towards coaching. All coaches know that you need to inspect what you expect. The franchisee scorecard, helps franchisees make data-driven decisions.  You can measure elements such as:

  • Sales
  • Percentage of online orders,
  • NPS scores
  • Google Reviews
  • Labor costs
  • Food costs

Franchisors define these indicators and can develop leaderboards, and coach franchisees where they are struggling.  By looking at this dashboard of the holistic view of the health of that unit, you can develop an action plan.

Adapting to the New Operating Environment

To pivot to the new operating environment, some franchisors are creating business plans. Imagine that you want to define a plan with the franchisees to adjust, including the goal:

“You need to keep your labor costs under 20%”.

Together, you define relevant initiatives at the start of the quarter, or start of the year. On your future calls, or on those virtual visits, go in and perform a check-in. This brings back up that plan to say:

“Okay, we need to pivot to the new operating environment.  Here are the things we said you would do, did you implement the new workflows?”

This is a straightforward example, but it an be as simple or sophisticated as you want it to be.

Conclusion

So overall, FranchiseBlast has a suite of tools that help with both compliance and coaching while performing the virtual visit.  The FranchiseBlast team is happy to discuss the best set of modules for you and your unique environment.



Request a Demo

Would you like to receive a demo of FranchiseBlast? We'd be happy to give you a personalized tour based on your needs.

Sign-up for our newsletter

Interested in receiving franchise news and tips & tricks? Sign-up for our newsletter.

Franchisee Comeback Plans

By | Franchise Business Plans, Franchise Engagement, Video
Are you preparing to help franchisees make a big comeback once the lockdown ends? We work with over 100 franchise brands and this gives us a unique perspective on what different franchisors are doing to help position their franchisees to thrive as the economy slowly returns to normal. Using these ideas, you can overcome the hardships brought forth by the COVID-19 pandemic.

Comeback Plan Overview

We’ve prepared a generic franchisee comeback plan to serve as a basis for your own efforts.  Let’s go through the plan together to explain the various elements and complement the work you’ve already done. To put some structure around this comeback plan, let’s think of it like a standard business plan a coach would collaboratively define with their franchisees.
To come back from this crisis, there are 4 key objectives that we define here in this comeback plan:
  • You need to be able to weather the storm financially
  • You must pivot to the new operating environment
  • You aim to keep your employees and customers safe
  • You want to bounce back rapidly via sales and marketing initiatives
To do this, we are using the Objectives and Key Results (OKR) methodology. We don’t need to go deep in the terminology to explain our plan, but let’s at least explain these concepts.
  • An OBJECTIVE is your goal and aligns everyone in simple terms
  • KEY RESULTS are how you measure your success; you can’t control this outcome
  • INITIATIVES are activities trying to achieve objectives, which you can control 100%

Objective #1:
Weathering the Storm Financially 

When we are talking about weathering the storm financially – the goal of the franchisee is to stay in business. The pandemic brings a lot of uncertainty, making cashflow management difficult. This will likely be the main conversation topic between the coach and the franchisee. When you look at this, it begs the question “how do you measure if you weathered the storm after the quarter”? The pandemic brings a lot of uncertainty, making cashflow management very difficult. All of the following Key Results are samples only, and the values themselves should be customized for your business.
  1. Maintain 12-months of runway – meaning you have enough cash to pay your rent and employees. If you don’t you need to put something in place today – which will be a loan, gov grant, subsidy, or any other type of relief.
  2. Measure having an EBITDA that is not losing 20% of your sales or more. If you are beyond that ratio, maybe the business should shut down completely and take a financial hit for the rent, but not operating.
  3. Reach a debt-to equity ratio under 0.75. The goal is to make sure that you will have enough cash in the future to pay off the debts that you incur today.

Although we touch on cash flow, profitability and balance sheet with these three indicators, most franchisors are focused exclusively on cashflow in the short term. Profitability and debt service aren’t as much of a focus right now (other than thinking of them while you figure out your cashflow issues), but they will become critical over the next few months.

In terms of initiatives, these are things that you can do concretely:
  1. Develop cashflow model with three scenarios (optimistic, pessimistic, realistic)
  2. Perform weekly cashflow review
  3. Apply for government relief
  4. Negotiate relief with landlord, suppliers and lenders
  5. Negotiate with bank to assist with cash flow by increasing the line of credit
  6. Develop strategy for worst case scenario (equity investment from a new partner, divestment to multi-unit operator or shutdown)
These activities are within your span of influence. You may not have 100% control over whether or not you will get government relief but you know that you can apply. If that initiative fails, then you may need to revisit your plan and see what other initiatives you can do to stabilize your cashflow situation.

Objective #2:
Pivot to the New Operating Environment

The world has changed, so we have to take an honest look at how the world is today, and you are going to have to adapt. Restaurants are letting customers order ahead, or arranging curbside deliveries. Service franchisors are doing remote meetings instead of face-to-face. Some stores are changing their layouts to accommodate new practices such as having a new cooler for meals while they wait to get picked up. No matter what your business, it has to adapt since this is a new world.
Key results associated with this include:
  1. All employees have completed the franchisor’s new training course – checking that everyone is aligned with your new operational processes
  2. Keep labor costs under 33% of sales – the actual ratio will vary based on your cash flow targets, but your staffing plans will likely have changed
  3. Keep COGS under 33% of sales – you may need to change how you operate to reach this goal
Initiatives connected to these Key Results include:
  1. Attend franchisor webinars / watch franchisor videos
  2. Implement franchisor’s new workflows to be aligned with the new environment
  3. Define new work schedules based on cashflow scenarios (reduced hours/staff, etc.)
  4. Define reduced product offering to minimize inventory carry
  5. Update product availability across all online platforms
  6. Consider grocery staples and produce baskets additions to meet supplier minimums
  7. Perform daily sales/inventory reviews and compare to cash flow models to be more efficient on inventory ordering
Although there are some businesses, such as those in pizza, who are not losing a lot of business, most have to adapt to the new situation. Think about what changed in your business and how you can determine if a franchisee is ready for the new world.

Objective #3:
Keep your Employees and Customers Safe 

Third objective is about keeping people safe – that is key. At the highest level, if you don’t do this, you are going to get in trouble. People are posting on social media about businesses that are laggards in this regard. This damages the brands reputation, even if it is just a matter of one or two franchisees. On top of that, there are lawyers driving around looking for employers to sue, since employees do not feel safe. This is a risky environment for business people.
Key results that could help you measure the objective include:
  1. No employees or customers are contaminated at your place of business – hard because maybe they get infected at the grocery store, but nice key result to aim towards
  2. Have all employees perform new COVID-19 training material – specific procedures related to sanitization and such
Initiatives that support keeping everyone safe include:
  1. Install new recommended signage / protective barriers / sanitizing stations
  2. Train staff on new COVID-19 procedures (cleaning, disinfecting, social distancing,  recognizing symptoms, etc.)
  3. Perform check-ins with staff to ensure they feel safe at work
  4. Monitor your franchisor’s communications daily to stay abreast of best practices
  5. Communicate with local health to learn about local regulations which apply
Keeping people safe is challenging for franchisors as they aren’t necessarily able to visit the units during the lockdown. They must influence franchisees who actually execute these best practices to keep people safe. Fortunately, most franchisees are welcoming of these initiatives and see value in their franchisor helping them implement best practices.

Objective #4:
Bounce Back Rapidly Via Sales and Marketing Initiatives

Overall, we are going to go through a recession. As a result, people will be strapped for cash and some businesses are going to be in trouble. It has been proven that doing marketing during a recession or a downturn helps during the recession and after. There are lingering results of consistent and effective sales and marketing. That market share that you can capture will be important. Although businesses want to control variable costs, the cost-cutting should not occur in the marketing area.
That being said, you want to be delicate. You want to make sure that your marketing initiatives are in tune with the demands in the marketplace. You cannot be tone-deaf or too aggressive and you have to operate with tact.
Key results associated with this include:
  1. Achieve 250 marketing campaign conversions – measuring the success of whatever pandemic-aware campaign you are running
  2. Add 250 new customers to our loyalty mailing list – a bigger list you can market to on a continuous basis
  3. Receive 250 new downloads of our app – expanding the list of people you can reach with promotional offers
  4. Increase average transaction size to $20.00. Online transactions are great but they can create a lot of busy work. If you can tack on upsells like grocery staples, it can benefit you.
Initiatives that support the Sales and Marketing objectives include:
  1. Review tone and messaging of the franchisor’s proposed marketing campaigns
  2. Perform one community engagement campaign. There are a bunch of franchises like sponsor a meal for front-line workers, where the franchisee delivers that food but gets paid for by a member of the community – it is a paying it forward. It also helps them achieve the minimums they need to keep to order from certain suppliers
  3. Perform a marketing campaign on social media
  4. Perform a direct mail campaign
  5. Perform a PR campaign; contact 3 local media outlets to pitch them the story.
  6. Perform an email blast campaign to loyalty/app members
  7. Perform weekly marketing ROI analysis and course correct if needed

Operationalizing Your Plan

Overall, the franchise comeback plan is defining the key results, the initiatives and objectives that you will be reviewing on a recurring basis as a franchisee and a coach. Typically we are creating annual and quarterly business plans. Here is what the comeback plan looks like in FranchiseBlast:
franchiseblast comeback plan 1

Here, you can see a summary of the objectives, along with a chart showing whether or not they are on track.

franchisee business plan 2

They Key Results and Initiatives are also seen, aligned with their relevant objective.

franchisee comeback plans 3

On each key result, you have an opportunity to check in, show whether or not you are on track, and put in a note for future reference.

With FranchiseBlast’s Business Plan module you are able to collaboratively define the comeback plan and, more importantly to avoid it sitting on a shelf and going stale, come back to it on a recurring basis.

You can also choose to implement your comeback plan as a self-assessment which would be more in line with a simple checklist. By sending out the self-assessment on a recurring basis, it stays top of mind. The individual questions would be formulated a bit differently (Did you perform your weekly cashflow review? Do you have enough cash for the next 3 months in a pessimistic scenario? etc). This model is a better fit for franchises where franchisee engagement is not currently optimal and/or franchisors who have had to furlough a large portion of their teams. In both of these cases, it is difficult or impossible to setup coaching sessions to review the comeback plan.

Download the Comeback Plan Now!

We are pleased to offer the Franchise Comeback plan in PDF form below, to help you with this effort.



Request a Demo

Would you like to receive a demo of FranchiseBlast? We'd be happy to give you a personalized tour based on your needs.

Sign-up for our newsletter

Interested in receiving franchise news and tips & tricks? Sign-up for our newsletter.

Pita Pit Customer Video Testimonial

By | Customer Testimonial, Video

Video Transcript

“My name is Daun Costa. I’m the IT Program Manager for Pita Pit and I look after all of our franchisee and consumer-facing applications.

Life before FranchiseBlast was all paper-based and email communications, nothing dynamic. There were challenges when it came to collaborating on projects or initiatives or managing locations. There was no information continuity. FranchiseBlast’s software is very streamlined. The interface is so user-friendly and very easy to learn.

The field audits app was the feature that sold us on the service the most as well as the action plans. We used the action plans very heavily with store opening procedures so it’s a huge component for the development team.

The process when we were onboarding with FranchiseBlast was very supported and very quick to implement. We had a lot of paper-based information, a lot of Excel forms and a lot of stagnant data even that we were pulling from a very very old intranet. We took all of that information gave it to the FranchiseBlast team and they imported it in very short order to get us up and running into the CRM.

What exceeded and continues to exceed our expectations with FranchiseBlast is the level of support and service and innovation. Anytime that we have a support requirement, the FranchiseBlast team is immediately responsive. Anytime we are looking at new ways to use the system or we have business objectives or challenges that we are looking to meet, we can always discuss it with the FranchiseBlast team and they help us find solutions.

FranchiseBlast is our central core system. It is the central repository for all of our information pertaining to our franchisees.”

 

ABOUT PITA PIT®:
Founded in 1995 in Kingston, Ontario near Queen’s University, Pita Pit® is an innovative fast casual restaurant with a unique mindset that challenges consumers to Refuse to Settle™ for anything less than quality, healthy, freshly grilled food. After rapidly earning a loyal following in its home market, franchising began across Canada in 1997 and, in 1999, the brand expanded to the United States. Now boasting more than 650 stores across North America and internationally across 13 countries, Pita Pit offers its customers millions of ridiculously delicious, customizable flavour combinations of grilled meats, fresh vegetables, and zesty sauces all rolled into a unique and convenient pita package. For more information about Pita Pit, visit www.pitapit.ca or www.facebook.com/pitapitcanada.



Request a Demo

Would you like to receive a demo of FranchiseBlast? We'd be happy to give you a personalized tour based on your needs.

Sign-up for our newsletter

Interested in receiving franchise news and tips & tricks? Sign-up for our newsletter.

FranchiseBlast Honored with a Prix MercadOr de l’Outaouais

By | Awards, News, Video

On June 7, Phone Loops, Allied Scientific Pro, FranchiseBlast, Ideal Protein and Jack’s Soda were each honored with a MercadOr award which recognizes business export achievements. Per Export Outaouais, “over the years the Mercador awards have come to be widely recognized as the entrepreneurial award in the province.”

Awards by Category

Phone Loops

award accepted by Jean-Philippe Brousseau
Nouvel exportateur [New Exporter]

Allied Scientific Pro

award accepted by Steeve Lavoie
Développement de marché [Market Development]

Franchise Blast

award accepted by Jason Kealey
Stratégie numérique à l’international [International Digital Strategy]

Idéal Protein

award accepted by Rui Perdigao
Leader à l’export [Export Leader]

Jack’s Soda

award accepted by Joël Beaupré and Mathieu Guillemette
Coup de coeur [Favorite]

You can view the award presentations and other clips from the evening of June 7 which took place at Zibi’s in Gatineau.



Request a Demo

Would you like to receive a demo of FranchiseBlast? We'd be happy to give you a personalized tour based on your needs.

Sign-up for our newsletter

Interested in receiving franchise news and tips & tricks? Sign-up for our newsletter.