Presentation: 7 Ways Franchise Operations Have Changed in 2020

By | COVID-19, Franchise Trends

The world has changed, have you changed with it? Take a moment to explore this enticing content about how franchising has changed in 2020, and what you can do.



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Saxton Group Rapid Fire Top 10

By | News, Restaurant

The Saxton Group based in Dallas Texas, is not only McAlister Deli’s largest franchise, but they are also the largest franchise of Focus Brands. FranchiseBlast’s Sr. Business Development Director, Dean Hatzitheodosiou sits down to chat with brothers Matt and Adam Saxton to learn about their operation, their family, and why they love the restaurant business.

See more great content from Modrn Business, the top podcast in franchising, and one of the largest franchise community podcasts in the world.



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IFA’s MOD Conference 2020

By | Events
MOD Conference

IFA is holding its Marketing, Operations, and Development Conference which is what you need to know about the future of franchise marketing, operations & development — all in one week! It is happening next week on October 6th-9th. Register Now.



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7 Ways that Franchise Operations Have Changed in 2020

By | Events
Operations Change

Date: October 20
Time: 2:00 PM EDT
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Who could have planned for this year? 2020 has brought forward so many challenges for franchise operators. On a practical level, it has impacted everyday lives from opening procedures to new ways to communicate. In this interactive, action-packed webinar, you will learn about what other franchisors are doing in 2020, and get ideas about what you can change to move your brand forward. We explore these in this exciting presentation featuring Stefania Sigurdson Forbes and Mark Bowen.

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Franchise Business Plan Ebook

By | Business Plans
Ultimate Guide to Franchise Business Plans

In today’s world, we have learned to expect the unexpected. As the franchising environment changes, now, more than ever, it is important to help franchisees with their business plans. This Ebook, co-written with Franchise Relations Strategist Greg Nathan, we explore:

  • A step-by-step approach to create business plans.
  • How to move away from reactive franchisee support.
  • How to integrate your most important KPIs.

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This eBook will equip you with everything that you need to get started with Franchise Business Plans.



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2020 Franchise Operations Edit

By | COVID-19
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, Sample OKRs
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, Sample OKRs
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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Sample Objectives and Key Results (OKR) for Salon and Spa Franchises

By | Salon and Spa, Sample OKRs
Salon and Spa Franchises OKRs

Salon and spa franchises represent well over a million businesses across the US. According to IBISWorld in 2019, there are currently almost 1 million firms operating in the hair and nail salon industry within the U.S., providing direct employment opportunities for almost 1.4 million people.  The health and wellness spa industry has over 22,000 businesses employing over 365,000 people. As the economy changes, salons and spas still employ many people.

OKRs

  1. O: Increase franchisee revenue.
    1. KRs:
      1. Get retail capture rate to 25% (% of people who buy retail items vs. spa guests).
      2. Have 100 customers do injectables (high ticket item).
      3. Increase customers by 20%.
      4. Increase facial treatment sales by 30%.
  1. Initiatives:
    1. Increase prices by 10%.
    2. Get front desk staff engaged in sales training from head office.
    3. Review injectable sales on monthly FranchiseBlast scorecard.
    4. Engage in Instagram for lead generation.
  1. O: Increase profitability through marketing efficiencies.
    1. KRs:
      1. Make cost/lead $25 off Google.
      2. Get repeat guest rate to 50% (% of total guests who are repeat guests).
      3. Increase business from referrals by 25%.
      4. Increase walk-in business by 10%.
  1. Initiatives:
    1. Optimize Google AdWords landing pages.
    2. Run annual referral campaign with current customers.
    3. Give roses to customers for the month of February as a Valentine’s Day promotion.
    4. Add colorful decals outside of clinic.
  1. O: Increase employee satisfaction of frontline staff.
    1. KRs:
      1. Make employee retention rate 20% (employees who left/total employees).
      2. Get eNPS (employee Net Promoter Score) to 30.
      3. Increase employee participation in group events by 50%.
      4. Increase employee participation in learning portal by 25%.
  1. Initiatives:
    1. Launch eNPS program.
    2. Review who has completed training using custom forms in FranchiseBlast.
    3. Have a staff holiday party.
    4. Allow team members to nominate each other weekly for “spirit” awards.

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 salon and spa franchises by checking out the following:



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Sample Objectives and Key Results (OKR) for Gym and Fitness Franchises

By | Gym and Fitness, Sample OKRs
Gym and Fitness Franchise Sample OKRs

According to the 2019 IHRSA Global Report, worldwide, the industry saw membership grow to a “record-high” 183 million users, revenue totaling an estimated $94 billion, and club count exceeding 210,000 facilities in 2018. As the global landscape shifts, we will still see gyms making a meaningful contribution to the economy.

OKRs

  1. O: Increase franchisee revenue.
    1. KRs:
      1. Grow membership by 10%.
      2. Grow inbound leads by 20% from online sources.
      3. Book trial with 40% of inbounds.
      4. Get sales conversion rate to 80%.
  1. Initiatives:
    1. Create Facebook campaign with agency.
    2. Put front desk staff through sales training provided by head office.
    3. Perform monthly review of leads vs. trials on FranchiseBlast scorecard.
    4. Work on lead quality of PPC (pay-per-click) and display campaigns together with agency.
  1. O: Increase profitability through marketing efficiencies.
    1. KRs:
      1. Make cost per lead $50.
      2. Have a member retention rate of 70% (existing clients at the end of the period/existing clients at the beginning of the period).
      3. Increase community marketing leads by 20%.
      4. Increase leads from signage by 10%.
  1. Initiatives:
    1. Work with property management group to have an attention-grabbing sign out front.
    2. Participate in local wellness expo.
    3. Host benchmark workout session with members for ongoing performance improvement.
    4. Place flyers for “first week free” at businesses in the same plaza.
  1. O: Delight our customers.
    1. KRs:
      1. Maintain a Net Promoter Score (NPS) of 50.
      2. Increase member engagement in group fitness by 10%.
      3. Put 90% of members through the outstanding onboarding program released by head office.
      4. Expand social media engagement by 50%.
  1. Initiatives:
    1. Host one customer appreciation event.
    2. Perform quarterly analysis of NPS with team on FranchiseBlast.
    3. Ask staff to post pictures on social media of members reaching milestones on a monthly basis.
    4. Engage in seasonal giveaway campaigns of branded merchandise with social media component.

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 gym and fitness franchises by checking out the following:



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